On Tuesday, SARS announced that if you earn less than R500,000 in a year you don’t have to file a tax return this year. Previously this was only for those who earned less than R350,000 a year.

But beware, says Marc Seivitz, director of the online tax assistance service TaxTim, the following need to apply:

  • You have worked for a full 12 months for one employer only and received an IRP5;
  • You have no additional allowances or deductions to claim such as medical, retirement or donations;
  • You have no travel allowance nor do you make use of a company car;
  • Most importantly, you earned absolutely no other income during the tax year;
  • You did not make any capital gains greater then R40,000 for the tax year.

If you do earn less than R500,000 and all the conditions apply, you should still consider filing a return, Seivitz says. “You (should) take great care here, and understand your duties properly, because if you don’t, you may suffer for it later on.”

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