Author: Marc Sevitz —Director & CFO, TaxTim
SARS has communicated that if you earn less than a prescribed minimum in a year, and fulfil a series of complicated criteria, you may not have to file a tax return in 2018.
However, we advise you to take great care here, and understand your duties properly, because if you don’t, you may suffer for it later on.
Here are the top 5 reasons why it’s best not to skip filing your tax return this season:
You miss out on your refund
Why let SARS keep your money if you are due a refund? A refund is money you overpaid on your taxes and it belongs to you. You can only get a refund if you file a return. Something as simple as claiming medical expenses or working two jobs can trigger a tax refund, depending on your situation. See the TaxTim refund calculator.
You can’t borrow money
If you wish to borrow money in the form of a mortgage for a home, or a long term loan of any kind in future, you may need a Tax Clearance Certificate. This can only be obtained if all your returns are up to date and filed appropriately.
SARS might change their mind
If you normally submit, but this year you fail to do so, SARS may administer administrative penalties later on down the line for not being compliant.
You can’t access your retirement fund
Filing a tax return each and every year means that should you receive a pay-out from a fund at any stage, then you will not have any hassle in getting the money. If you retire or are retrenched, or just need to take money out of your fund early, you need to be tax compliant.
A complete record stands in your favour
Having an unbroken filing record leaves SARS officials with no reason to suspect that you are hiding information from them, thus triggering an audit next year. Filing a tax return means you are being a good citizen and contributing towards society!
For all the detailed SARS information about Personal Tax, click here for more.
Do you want to see the TaxTim affordable pricing schedule — click here.
Are you still unsure? For more information on how it all works, click here to find out more.