FAQ – When is an individual taxpayer not liable to file an income tax return?

  • For the 2007 tax year, an individual taxpayer is not liable to file a return if his or her income does not exceed R60 000.
  • For the 2008 to 2012 tax years, an individual taxpayer is not liable to file a return if his/her employment income is less than R120 000. The following conditions must be met in order for this rule to apply:
  • The total income must be less than R120 000
  • The income must be derived from employment i.e. IRP5 only (IT3a is excluded as it can be income other than employment income. As no tax was withheld, the user will need to assess it)
  • The income must be derived from a SINGLE source only (i.e. one employer)
  • For 2013 tax year and onwards, an individual taxpayer is not liable to file a return if his/her:
  • Received remuneration income does not exceed R250 000 per annum, and employees’ tax has been deducted or withheld in terms of the deduction tables prescribed by the Commissioner.
  • The following conditions underpin the application of R250 000 rule:
    • The total income must be less than R250 000 per annum;
    • The income must have been derived from EMPLOYMENT (Single source) only (i.e. IRP5);
    • Remuneration is for a full year of assessment (March – February), and
    • There was no allowance or advanced paid, for example travel allowance, public office allowance., or
  • Received Interest income from a source in the Republic not exceeding:
    • R22 800 in the case of a taxpayer below the age of 65 years; or
    • R33 000 in the case of a taxpayer aged, or above the age of, 65 years.

Note: Criteria for return submission: Each year, a notice is published in the Government Gazette which prescribes the criteria for persons who are liable to submit an annual income tax return and those who are not liable to submit return.

Refer to the following link for the Government Gazette: www.sars.gov.za/Legal/SecondaryLegislation/Pages/Regulations or Income Tax Notices.

Comments are closed.