With Alert Level 4 being announced by the president of South Africa on Sunday, 27th June 2021, it is high time South Africans work smartly towards a digital future. Accounting firms like Didiserv offer digital accounting, advisory, tax and payroll services to help companies struggling to keep up with compliance related matters during these trying times. With the tax season approaching, SARS closing its doors, services such as digital tax are now a must-have.
The South African Revenue Services (SARS) has announced that taxpayers will be able to file their tax returns from 1 July 2021. SARS is encouraging individuals to accept the auto-assessment but we strongly suggest that you do not accept this. Instead, consult with a professional such as Didiserv | Digital Accountants to maximise your tax return.
When is Tax Season?
Tax season is the period in which taxpayers must complete and submit their tax returns to SARS.
The South African Revenue Service begins tax season for individuals on the 1 July each year with tax season usually closing the last Friday of November of the same year.
Filing Season 2021 dates
- 1 July to 23 November 2021:
- 1 July to 31 January 2022: Provisional taxpayers including Trusts may file via eFiling or SARS MobiApp.
What should I do when I receive my SARS Auto-Assessment?
SARS may contact you through email or SMS with an auto-assessment of your taxes. We advise you to reject the auto-assessment and instead file your tax return as usual from 1 July to 23 November 2021. If you need a professional, start from as little as R450 with Didiserv Digital Tax solutions.
The auto-assessment will not include any extra deductions that you may be able to claim, like home office expenditure (don’t miss out on this one!), wear and tear on assets and donations. It will also not include any qualifying medical expenses you may have paid for yourself.
Step 1. Reject the auto-assessment.
Log in to your SARS eFiling profile and reject the auto-assessment. You can do this by following the instructions below.
- Log into your eFiling profile and click on Returns
- Next, click on Returns Issued on your left and then click on Personal Income Tax ITR12,
- Select the 2021 return and click on Request Return.
- Once you have done this, you will receive a message saying: “SARS has simulated a tax calculation for you….” Please click on Continue.
- Now click on “Edit Return” which will reject the SARS estimate.
Step 2. File your tax return as normal.
Use Didiserv to assist you to file your tax return. Our system is designed to ask you all the questions needed to maximise the refund due to you, file correctly & with confidence!
What documents you need to have ready
- IRP5/IT3a: tax certificate from your employer which details your earnings, deductions and taxes paid
- Medical Aid Tax Certificate: a summary of your Medical Aid membership and contributions for the year.
- IT3b/IT3c: a summary of all the interest, dividends and capital gains you earned through your investments.
- Retirement Annuity Certificate: your contribution certificate for the year.
- PBO Certificates: summary of the charitable amounts you donated during the tax year (and well done to you!).
You are able to store these documents with Didiserv if you are an existing tax client. If you are not an existing tax client and would like to store these documents with us, you are able to subscribe here for as little as R25pm:
Rates of Tax for Individuals
2021 tax year (1 March 2020 – 28 February 2021)
|Taxable income (R)||Rates of tax (R)|
|1 – 205 900||18% of taxable income|
|205 901 – 321 600||37 062 + 26% of taxable income above 205 900|
|321 601 – 445 100||67 144 + 31% of taxable income above 321 600|
|445 101 – 584 200||105 429 + 36% of taxable income above 445 100|
|584 201 – 744 800||155 505 + 39% of taxable income above 584 200|
|744 801 – 1 577 300||218 139 + 41% of taxable income above 744 800|
|1 577 301 and above||559 464 + 45% of taxable income above 1 577 300|