If you are a South African resident, you start paying income tax as soon as you receive any taxable income that exceeds the threshold for a particular tax year, irrespective of your age.

The 2010 income threshold for people under 65 years of age is R54200 and R84200 if you’re 65 years or older. The 2009 income threshold for people under 65 years of age is R46000 and R74000 if you’re 65 years or older.

You will be considered a SA "resident" if:

• you are ordinarily resident in SA or
• you are not ordinarily resident in SA but
  • Was physically present in SA for more than 91 days during the current year of assessment plus 91 days in each of the 5 years preceding the current year of assessment and
  • was physically present in SA for more than 915 days in aggregate during the preceding 5 years of assessment

If you earn remuneration of less than R60,000 per year you don’t have to submit a return. The tax (SITE) deducted by your employer will be considered your final tax.

The tax year for individuals runs from March to February. For example our current tax year, the 2010 tax year, streched from 1 March 2009 to 28 February 2010.

The opening of filing season as well as the deadline for submission of the 2010 returns is still to be announced.

You can either use SARS efiling and file your return electronically or you complete and submit it manually. We suggest you use efiling.

No extentions are given by SARS. Income tax returns need to be submitted by the submission date which will still be announced.

This is the "withholding" taxes deducted by your employer from your salary on a monthly basis. It is your employer’s duty to pay over these amounts to SARS which will be brought into account when you do your final tax calculation. SITE (standard income tax on employees) is the tax deducted on the first R60,000 of your remuneration. PAYE (pay as you earn) is the amount of tax deducted on income exceeding R60,000.

If you earn income other than employment income, e.g. income from a business or investments, you might be required to register as a provisional taxpayer. This means that you make two provisional (or advance) payments a year, normally in August and February. Provisional payments will be brought into account when you do your final tax calculation.

Let’s say most of it yes such as income from remuneration (e.g. salary, bonus etc), investment income (interest, rent and dividends), income from a business or trade, pension and certain capital gains. But you do get certain exemptions as set out below.

Yes, some income is exempt e.g. interest received to a certain extent; some capital gains etc. See Tips and Tools. and the rest of the FAQs for more detail.

Yes, you have to although certain exemptions might apply. If you received remuneration for services rendered outside SA, such income would be exempt if you were outside SA:

• for more than 183 days during any 12 month period commencing or ending during the current year of assessment and
• you spent 60 of those days in one continuous period

If you receive only remuneration income, you’re very limited as to the deductions you’re allowed to claim. Medical expenses and a claim for travel expenses (if you received an allowance) will probably be your biggest deductions together with your contributions to pension or retirement annuity funds.

Your deduction for medical expenses is based on the number of dependants on your medical scheme as well as your taxable income. See "Tips and Tools" for a detailed explanation and calculation.

The claim you have for travel expenses, depends on whether you kept a log book and detail of your actual expenses, the kilometers traveled etc. See "Tips and Tools" for a detailed explanation and calculation. From 1 March 2010 a logbook is compulsory. No deemed private and business km's will be used.

SARS E-Filing ensures that your return is processed faster and accurately, so you will receive any rebate much faster than if you submit normally.

Remuneration is the income you receive from employment. You will normally get an IRP5 certificate from your employer or in some cases an IT3(a).

Please note that dividends received from South African companies and unit trusts are exempt from tax. Foreign dividends are taxable. Local and foreign interest is taxable. The following exemptions per person are applicable for 2010:

• Under 65 – R21000 (2009 = R19000)
• 65 and older – R30000 (2009 = R27500)

The exemption of foreign interest and dividends will be limited to R3500 (2009 = R3200)

Also see Tips and Tools for more tax saving info.

Since 2005, losses from rental operations might, under certain circumstances, be ring-fenced. This means that any loss incurred in a particular tax year, might not be allowed as a deduction against your other income and will be carried forward to following tax years to claim against future gains from rental operations. Calculations should be done per property/asset.

Since 2005, losses from carrying on certain trades might, under certain circumstances, be ring-fenced. This means that any loss incurred in a particular tax year, might not be allowed as a deduction against your other income and will be carried forward to following tax years to claim against future profits from such trades.

If you conducted any business, trade or profession (incl farming operations) you should prepare and submit a proper income statement with your return.

Since 1 October 2001, you have to pay income tax on certain capital gains you make when disposing of certain assets. Also see Tips and Tools for more free advice and a full CGT calculation.

You may claim up to 10% of your taxable income for donations made to certain organisations. Please make sure that you get your section 18A receipt from the organization to which you made your donation.

You may claim up to 7.5% of your gross retirement funding income (code 3697 on your IRP5) as a deduction.

You may claim up to 15% of your non retirement funding income as a deductuion. Your claim is the biggest of

a) 15% of your non-retirement funding,

b) or R3,500 less contributions to a pension fund,

c) or R1,750

See Tips and Tools for more info and a detail calculation.

You can deduct contributions without any limit.