Latest news with #MthobisiNozulela
The Star
3 days ago
- Business
- The Star
How South Africans can pay less tax without risking SARS penalties
Mthobisi Nozulela | Published 2 days ago South Africa has some of the highest tax rates in the world, but there are legal methods taxpayers can use to reduce their tax burden and retain more of their income. With personal income tax rates reaching as high as 45% for individuals earning above R1.8 million, and with the country's tax-to-GDP ratio expected to approach 25% in the coming years, many South Africans are feeling the pressure. However, in an interview with radio station Kaya 959, Roxanna Naidoo, Head of Global Strategy at Latita Africa, said there are other legal ways South Africans can use to pay less tax. "I'm a very strong advocate for tax avoidance and how to ensure that you're optimising your tax incentives legally. And there are quite a few ways," Naidoo said. Naidoo explained that many taxpayers miss out on important deductions simply because they don't fully understand what qualifies. "So, the tax system actually allows you to reduce your liability. And there are a few mechanisms there, but taxpayers aren't aware of that," she said. "We know the most common one is your retirement annuity contributions. They are deductible up to a certain limit. Then the second common one, again, is your medical contributions, but also out-of-pocket medical expenses. People forget about those". She also stressed that out-of-pocket medical expenses can also qualify for tax credits, and business-related travel costs may be deductible. "That can also qualify for medical tax credits. Then, if you earn commission or you travel for work, you may also qualify to deduct business travel expenses. That's where keeping those receipts comes in as very important, keeping all of those records" Naidoo also warned taxpayers to be cautious with SARS auto-assessments, which are pre-filled tax returns based on third-party data like employer records and medical aid contributions. "If you accept the assessment without checking, you risk under-declaring income or even losing out on those deductions that you should be getting. "Also, if SARS audits you later, and they do this sometimes up to five years down the line, they'll ask you for that documentation. And if you don't have it, they can then reverse deductions and charge penalties and interest. So, always check your assessment before accepting it and keep those records of everything, just in case" IOL News [email protected] Get your news on the go, click here to join the IOL News WhatsApp channel
The Star
13-07-2025
- Business
- The Star
The real price of not filing your tax return in South Africa
Mthobisi Nozulela | Published 8 hours ago The 2025 tax season is in full swing, but many South Africans are still not filing their returns, unaware that this could lead to mounting penalties and legal trouble. The tax season officially began on Monday, July 7 2025, with the South African Revenue Service (SARS) setting deadlines for different categories of taxpayers. According to the revenue collector, individual taxpayers must file their returns by October 20, 2025. Provisional taxpayers, meanwhile, have until January 19, 2026 to submit. "Taxpayers who do not receive notifications from SARS that they are automatically assessed are encouraged to submit their tax returns in a timely and accurate manner from July 21, 2025," SARS said. Failing to file, even when no tax is owed, can lead administrative penalties of up to R250 to R16,000 per month for each return outstanding. "In more severe cases, persistent non-compliance may result in criminal charges, including prosecution for tax evasion. Importantly, SARS uses advanced data-matching systems and international reporting standards to detect undeclared income, so assuming you're not "under the Radar" is a risky gamble," Tax Consulting South Africa said. Tax Consulting South Africa, a firm specialising in South African and international tax law, as well as SARS compliance. "Even if no tax is owed, filing your tax return ensures your tax affairs are in order and protects you from retrospective assessments or penalties. In a country where tax compliance is both a legal requirement and a civic duty, many South Africans still believe that if they don't owe anything, they don't need to file a tax return. "Unfortunately, that assumption could have costly financial and legal consequences. Whether due to oversight, uncertainty, or misinformation, failing to submit your annual return — even when you think there's no tax due — is a risk that can escalate over time. Tax Consulting South Africa also advised those who have not filed for several years to first check which past tax years they were supposed to file for. To fix this, they recommend that taxpayers can work with a tax practitioner to gather all relevant documents and submit the outstanding returns as soon as possible. "To avoid any further incurrence of penalties, it would be advisable to stay vigilant of any notices shared by the commissioner requiring returns for assessments of a normal tax return, within the period prescribed in that notice, per section 66 of the Income Tax Act. As such, ensure that you file your tax returns as and when they become due or on or before the prescribed deadline" IOL News [email protected] Get your news on the go, click here to join the IOL News WhatsApp channel.
