WHO MUST SUBMIT AND WHEN MUST THE 2017 TAX RETURNS BE SUBMITTED?

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A. General:

  1. 2017 year of assessment means –
    1. In the case of a company, the financial year of that company ending during the 2017 calendar year; and
    2. in the case of any other person the year of assessment ending during the period of 12 months ending on 28 February 2017.
  2. Income tax return means –
    A return for the assessment of normal tax in respect of the 2017 year of assessment.

B. The following persons must submit Income Tax Returns for the 2017 tax year.

  1. A company, trust or other juristic person, which is a resident;
  2. Income tax return means –
    1. which carried on a trade through a permanent establishment in the Republic;
    2. which derived income from a source in the Republic; or
    3. which derived any capital gain or capital loss from the disposal of an assets to which the Eighth Schedule to the Income Tax Act applies;
  3. A company incorporated, established or formed in the Republic, but which is not a resident as a result of the application of any agreement entered into with the Government of any other country for the avoidance of double taxation;
  4. A natural person who –
    1. Is a resident and carried on any trade (other than solely in his or her capacity as an employee); or
    2. Is NOT a resident and carried on any trade (other than solely in his or her capacity as an employee) in the Republic;
    3. Was paid or granted an allowance (i.e. travel allowance) or advance (i.e. subsistence) as described in section 8(1)(a)(i) of the Income Tax Act (other than an amount reimbursed or advance as described in section 8(1)(a) (ii)) AND whose gross income exceeded the thresholds set out in item (k);
    4. Was granted a taxable benefit described in paragraph 7 of the Seventh Schedule to the Income Tax Act AND whose gross income exceeded the thresholds set in item (K);
    5. Is a resident and had capital gains or capital losses exceeding R40 000.00.
    6. Is not a resident and had capital gains or capital losses from the disposal of an asset to which the Eight Schedule to the Income Tax applies;
    7. Is a resident and held any funds in foreign currency or owned any assets outside the Republic, if the total value of those funds and assets exceeded R225 000.00 at any stage during the 2017 year of assessment.
    8. Is a resident and to whom any income or capital gains from funds in foreign currency or assets outside the Republic could be attributed in terms of the Income Tax Act;
    9. Is a resident and held any participation rights, as referred to in section 72A of the Income Tax Act, in a controlled foreign company;
    10. Is issued an income tax return form or who is requested by the Commissioner in writing to furnish a return, irrespective of the amount of income of that person;
    11. Subject to the provisions of paragraph C, at the end of the year of assessment-
      • (aa) was under the age of 65 and whose gross income exceeded R75 000.00
      • (bb) was 65 years or older (but under the age of 75) and whose gross income exceeded
        R116 150; or
      • (cc) was 75 years or older and whose gross income exceeded R129 850.00;
  5. Subject to the provisions of paragraph C, every estate of a deceased person that had gross income;
  6. Every non-resident whose gross income included interest from a source in the Republic to which the provisions of section 10(1)(h) of the Income Tax Act do not apply; and
  7. Every representative taxpayer of any person referred to in subparagraphs (1) to (6) above.

C. The following natural persons do not have to submit a 2017 tax return, if the person’s GROSS INCOME includes 1 or more of the following:

  • a. Remuneration paid or payable from one single source, which does not exceed R350 000.00 and employees’ tax has been deducted or withheld in terms of the deduction tables prescribed by the Commissioner;
  • b. Interest (other than interest from a tax-free investment) from a source in the Republic not exceeding-
    • i. R23 900 in the case of a natural person below the age of 65 year.
    • ii. R34 500 in the case of a natural person aged 65 years or older; or
    • iii. R23 800 in the case of the estate of a deceased person;
  • c. Dividends and the natural person was a non-resident throughout the 2017 year of assessment; and
  • d. Amounts received or accrued from a tax-free investment.

D. Dates by when income tax returns must be submitted:

  1. Any company, within 12 months from the date on which its financial year ends; or
  2. All other persons (which include natural persons, trusts and other juristic persons, such as institutions, boards or bodies)-
    • i. On or before 22 September 2017 if the return is submitted manually;
    • ii. On or before 24 November 2017 if the return is submitted by using the SARS E-filling platform or electronic through the assistance of a SARS official at an office of SARS;
    • iii. On or before 31 January 2018 if the return relates to a provisional taxpayer and is submitted by using the SARS e-filling platforms; or
    • iv. Where accounts are accepted by the Commissioner in terms of section 66 (13A) of the Income Tax Act in respect of the whole or portion of a taxpayer’s income, which are drawn to a date after 28 February 2017 but on or before 30 September 2017, within 6 months form the date to which such accounts are drawn.

If you have any queries, please contact Petri Westraadt at pwestraadt@fhbc.co.za

Source Reference

Government Gazette, 9 June 2017 NO. 547 – Returns to be submitted by a person in terms of section 25 of the tax Administration Act, 2011 (Act no. 28 of 2011).