Tax season is around the corner – eek! We all know how intimidating the whole process can be but we may have some good news for those who earn R500 000 per annum. Last week, SARS announced on Tuesday that it has lifted the tax return threshold from R350 000 to R500 000. Do not be fooled, this allowance comes with a number of conditions. Here is what you need to know about the new tax threshold announced by SARS.
WATCH: Kieswetter announces that taxpayers earning below R500 000 are now no longer required to submit returns. This is an increase from the previous threshold of R350 000 pic.twitter.com/qO50CR1lsY
— SA Gov News (@SAgovnews) June 4, 2019
If You Earn Less Than R500 000, You May Not Need To File Your Taxes
It’s important to know that SARS has created strict criteria for those who earn R500 000 or less. The requirements are as follows:
- Your total employment income for the year, before tax, cannot be more than R500 000.
- You should only be getting your income from one employer during the tax year.
- You should have no additional income – this includes rental income, side-hustle income etc.
- You cannot have additional allowable tax-related deductions to claim. This includes items such as medical aid, retirement contributions or travel expenses.
If this applies to you – make sure you make use of the provisions created by SARS. If your financial situation switches up for the better, then you have to file as per usual. Remember, the tax season will start on 1 August for all taxpayers and e-filing will be available from 1 July.
Happy tax season!
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