Tax return threshold: Why you should still submit.

SARS announced in February 2019 that the tax return threshold will be increased from R350,000 to R500,000 effective 1 March 2019.

This essentially means that if you earned R500,000 or less for the 2019 tax year from one employer and have no further income to declare or deductions to claim (such as medical aid, retirement annuity etc.) you are not required to submit a tax return.

While this is good news from SARS, you should still submit if any of the following applies to you:

- You weren't employed for the full tax year

- You have medical aid or a retirement annuity

- You plan on applying for credit such as a home loan or vehicle finance in the near future

Tax payers may be missing out on potential refunds from SARS if their return is not submitted, additionally many finance institutions require a tax clearance certificate as part of their application process which could become an issue if there are missing tax returns.

If in doubt, rather submit and claim any refunds that may be due to you.

Contact us for any tax or accounting advice.