Everything you need to know on Personal Tax

For a lot of people, income tax forms are like a tough government quiz that they need to answer every year. With Bizzacc Accounting it becomes easy. It does not have to be so hard to be good South African citizens and pay our taxes to the government?
What is personal income tax?
Personal income tax is paid to the government from your taxable income or salary. Tax revenues are used to pay for hospitals, schools, roads, and other services provided by the government. The South African Revenue Services (SARS) is the government agency tasked to collect and ensure fair contribution of all earning citizens.
The Income Tax Season runs from July to November of each year. For provisional taxpayers, the season runs until January of the succeeding year. Taxpayers must submit Income Tax Return (ITR12 form) during the season so that SARS can compute the total taxes due.
How much is your tax?
The total personal income tax you need to pay depends on:

• Your compensations,
• Your age (whether you are under or over 65 years old), and
• Whether you are a paying member of a pension fund or retirement annuity fund.

Aside from income from employment, other personal income that can be taxed include:

• Fringe benefits,
• Certain lump sums,
• Income from investment, business or trade,
• Pension income,
• Annuities,
• Certain capital gains,
• Director’s fees,
• Rental income, and
• Income from royalties.

Who is liable to pay personal income tax?
According to the SARS, for the Tax Year 2016 (1 March 2018 to 28 February 2019), you are required to file income tax returns if you are:

• Under 65 years old with gross income over R78 150
• 65 years old and older with gross income over R121 000
• 75 years old and older with gross income over R135 000

However, there are exceptions. Exempted individuals are those with gross income that does not exceed R350 000 for the prior year, provided:
Individual’s compensation is from one employer only,
Individual does not claim medical aid or retirement annuity fund contributions,
Individual does not receive travel allowance and other income.
These are just a few exemptions applicable for the personal income tax. A reliable accounting agency like BizzAcc can help you determine whether you are required by law to file income tax returns.
Make taxation processes simple and save yourself from possible conflicts with the law. Qualified accountants at Bizzacc.co can help you.