Tuesday, June 11, 2013

Tax Refunds

We receive a lot of queries from our clients regarding e-mails received from SARS confirming they qualify for a refund. We can confirm it is a scam, and clients should never click on the links provided.

The tax season opens 1 July this year, and after we've submitted the tax return all refunds due to clients will be paid automatically to them. You will receive a notification from our office confirming the refund. If we've submitted the tax return and the refund is not paid out within a week, the reason for the delay is usually the client needs to verify their banking details with SARS. 

The only way to verify banking details is to go into a SARS branch and take the following documents:
Certified copy of your I.D. 
I.D. book
Proof of residential address (not older than three months)
Original three months bank statement (stamped by the bank)
Also take along the tax assessment we've e-mailed to you to confirm your tax reference number

Remember, the only way to qualify for a refund is when you have paid tax for the year - if you are below the minimum threshold you won't be able to claim back. 
You are below the minimum threshold if you've earned below the annual salary of:
R63 556 per annum (for tax year 2013: 1 March 2012 - 28 Feb. 2013)
R67 000 per annum (for tax year 2014: 1 March 2013 - 28 Feb. 2014)
R67 111 per annum (for tax year 2015: 1 March 2014 - 28 Feb. 2015)

If you are above the threshold and pay more than above, your HR department should normally deduct the correct tax amounts each month resulting in a R0 tax assessment - you don't owe SARS and you also won't qualify for a tax refund. People who claim back usually has retirement annuities and/ or substantial medical bills and/ or a travel allowance.

If you want to claim for your travel allowance you must keep a logbook and claim your actual business related expenses.

For any additional information please contact our office.