When you start working and earning an income one of the most important things you will need to do is register as a tax payer.
So where do you start?
Your employer is legally obligated to register you as a taxpayer at SARS and SARS will issue you with a unique tax number. (If you are registering yourself you will need to fill out all the necessary documentation and complete the registration processes at your nearest SARS branch.)
From then on your employer will deduct an amount of tax or PAYE from your salary each month and pay it over to SARS on your behalf. At the end of each Tax Year your employer will provide you with a document called an IRP5 certificate. Your IRP5 contains all your personal and income related details, all the tax you have paid as well as whether or not you received a bonus, contributed to medical aid, retirement or anything else.
From the 1st of July Tax Season begins and this is the time to file your personal income tax return – officially known as an ITR12. You have until November to file your tax return. It’s that easy. And even easier if you sign up for e-filing and complete your tax return online via SARS or with the help of TaxTim.