SARS is the act which was established by the legislation which works to collect revenue ensuring compliance for taxes. The vision of South African government behind SARS was to enhance economic growth and social development of the society with an integration into global economical world which benefits all the citizens of South Africa.
If you earn income other than a salary or anything more to that, then you must register as a provisional taxpayer with form in order to sars efiling registration form. You are required to pay tax in advance in at least two amounts during the year of assessment, based on estimated taxable income.
Taxation In South Africa:
When it comes to taxation in South Africa, it’s a bit tricky. The tax season 2017 involves payments to a minimum of two different levels of government: one at the central government through SARS which was prior to 2001 known as “source-based”, wherein income is taxed in the country where it originates. During January 2001, the tax system was changed to “residence-based” wherein taxpayers residing in South Africa are taxed on their income irrespective of its source. Talking broadly about the central government, revenues here come primarily from value added taxes as the local government grants funds from central government at municipal rates. Tax season 2017 was the ultimate financial year wherein everything like GDP ratio changed from 25.8% to 25.9%. The three provinces of South Africa contributed 77.9% of the total tax revenue including Gauteng 49.8%, Western Cape 15.0%, and KwaZulu-Natal 13.1%.
Tax Loopholes And The Offences Under The Tax Act!
Considering the SARS efiling deadline 2018, there are a number of loopholes attached and identified by SARS over the years. Although they have been successfully closed now. These loopholes include:
- Cross-border mismatches
- The insurance payments and interest exemptions
- Interest cost allocation for finance operations
- Transferfor pricing
- Certain classes of preference and guaranteed share
Offences that have been committed under the act are:
- To submit a tax return or document to SARS
- If someone fails to issue a document to a person as needed or required
- If a person fails to register or amend a registration in the instance where registered details have changed
- To keep records as needed by SARS
- Knowingly submit a false tax certificate or statement
- To refuse or neglect to take an oath or make a solemn declaration.
A person convicted of these offences may be liable for paying a fine or imprisonment that will not exceed for more than two years.
To Register As A TaxPayer:
For filling sars efiling registration form, one must register as a taxpayer with the South African Revenue Service (SARS) only if you earn more than a specific amount, which is determined every year. You must register within 60 days of first receiving an income. There are various things you must submit while the registration process which may include:
- Identity proof
- Address proof
- Bank details
The form of IT77 has been discontinued for individuals and only visit of SARS is the place where you can register. Although a proper company is allowed and liable to use the form of IT77.
Once you have been registered for the above tax and given your tax number, you can register for eFiling on the official SARS website to file income tax returns online when tax season starts. Incase if you do not register for eFiling, SARS will send you a form that you must complete filling and send it back.
To submit a tax return in order for SARS, you must calculate whether you have to pay additional tax or whether they must give you a refund.