2019 TAX season is here!

Although Edward Kieswetter (SARS’ new commissioner) announced on Tuesday, 3 June 2019, that SARS has increased the tax return threshold from R350,000 to R500,000, there are certain rules: 

• Income can only be received from one employer;
• There must be no other income, such as a car allowance, subsistence, or any other allowances on the IRP5 certificate; 
• There must be no other business income, or rental income;
• There must be no capital gains / losses transactions; 
• There must be no additional deductible allowances, such as medical expenses, travel expenses or retirement annuities. Individuals will lose out on these deductions and tax credits if they do not submit their tax returns. 

Taking the above into account, the following will be useful to get you ready for the 2019 tax return filing season: 

1. The filing season opens on 1 July 2019.
2. Supporting documents to get ready: 
   • Your banking details
   • Your IRP5 / IT3(a) certificates from your employer
   • Certificates that you received in respect of any investment income [IT3(b)/IT3(c)/IT3(s)]
   • Details of medical expenses paid by you and not covered by your medical scheme
   • Completed confirmation of diagnosis of disability form 
   • Retirement annuity contributions certificates
   • Details of business travel (if you received a travel allowance or want to claim against a fringe benefit for an employer provided vehicle)
   • Certificates relating to foreign tax credits withheld
   • Capital Gains / Losses information. 

Here are some guidelines regarding Capital Gains / Losses transactions: 

Events that usually trigger a disposal, besides the normal disposal of property, include a donation, exchange, loss, death or emigration.

Specific exclusions: 

• R2 million gain/loss on the disposal of a primary residence (this is where your cat lives) 
• Retirement benefits
• Payments in respect of original long-term insurance policies
• Annual exclusion of R40 000 capital gain or capital loss is granted to individuals and special trusts
• Small business exclusion of capital gains for individuals (at least 55 years of age) of R1.8 million when a small business with a market value not exceeding R10 million is disposed of
• The exclusion granted to individuals is R300 000 for the year of death, instead of the annual exclusion.

Exponential Brilliance prides ourselves that we are at the top of our game when it comes to taxes and submissions, and you will be most satisfied to choose us for your tax filing this year. 

Visit us at www.exponentialbrilliance.co.za for more information.