The Step-By-Step Of Completing Your Income Tax Return

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If you received an income equal to or above R120 000 from one employer for the past financial year, you need to complete an Income Tax Return form, known as an ITR12.

Before completing this form, first make sure you are registered for income tax and whether your total income for the past year validates completing an income tax return.

Let's start at the beginning. In order to receive an Income Tax Return (ITR12) you, your tax practitioner or employer should complete an IRP5 certificate. This certificate is a summary of your personal, taxable annual income, tax paid for that specific year (PAYE) and taxable employer contributions like medical aid, pension fund, car allowance etc. Your IRP5 certificate is then sent to SARS either by yourself, employer or tax practitioner upon which your income tax return is sent back.

When completing your ITR12 you, your employer or tax practitioner will need the following information at hand (where applicable):

• IRP5 Certificate/s or IT3(a) certificates

• Details pertaining to invest income

• Banking particulars

• Medical expense certificate or expenses incurred

• Information pertaining to retirement annuity contributions

• Business travel details if you receive a travel allowance

• Information pertaining to capital gain transactions

• Financial statements for e.g. business income

• Other information pertaining to income or other deductions you can claim for

Even though you, your employer or tax practitioner will be using the above documentation to complete your tax return, it won't be handed in with your ITR12.

When completing an income tax return always use a black pen and write in capital letters. It may be that you, your employer or your tax practitioner receives a customised income tax return from SARS based on the information at their disposal. Most of this information includes personal details like ID number, marital status, birth date etc.

Check all this information and correct where possible. Fill in any outstanding information. Starting from this year SARS will have already put in the income received from your employer or pension, based on the information provided to SARS on your IRP5. The only thing you need to do then is check the income on the return with your IRP5 certificate/s received.

Once your income tax is fully completed, it can be submitted to SARS yourself, employer or tax practitioner. Please bare in mind the deadlines for submissions as set out by SARS to prevent hefty penalties.

If you require any information with regards to your tax return or any other tax related queries contact us today.