Your Guide to Submitting an ITR12 Tax Return in South Africa

Tax season can feel daunting, but understanding the process of submitting your ITR12 tax return is crucial for every South African taxpayer, whether you're an individual or a small business owner. At My Accountant, we believe in empowering you with the knowledge to navigate SARS requirements with confidence. This comprehensive guide will walk you through everything you need to know about your ITR12 submission.

What is an ITR12 Tax Return?

The ITR12 is the official Income Tax Return for Individuals form issued by the South African Revenue Service (SARS). It's used by individuals to declare their annual income, claim deductions, and calculate their tax liability or refund. Essentially, it's your annual financial report to SARS, ensuring you contribute your fair share to the national fiscus.

Who Needs to Submit an ITR12?

Not everyone needs to submit an ITR12. However, it's safer to assume you do unless you meet very specific criteria for exemption. You generally must submit an ITR12 if you:

• Are a registered taxpayer with SARS.
• Earned income from more than one employer.
• Received income other than a salary (e.g., rental income, freelance income, investment income, foreign income, or business income).
• Received an allowance (e.g., travel allowance) or fringe benefit.
• Want to claim tax-deductible expenses (e.g., medical expenses not covered by your medical aid, retirement annuity contributions, or business-related expenses for commission earners).
• Were informed by SARS that you need to submit a return.
• Received a taxable capital gain.

Certain individuals may be exempt if their total annual remuneration from a single employer does not exceed a specified threshold (which changes annually) and no other income was received. However, if in doubt, it's always best to check with SARS or consult a tax professional. For comprehensive assistance, explore our individual tax services.

Essential Documents for Your ITR12 Submission

Before you begin the submission process, gathering all your relevant documents is paramount. This will ensure accuracy and speed up your submission. Here’s a checklist:

Income-Related Documents

• IRP5/IT3(a) Certificate: Issued by your employer(s), showing your earnings, PAYE (Pay As You Earn) deducted, and other contributions like UIF. If you have multiple employers, you'll need all certificates.
• IT3(b) Certificate: For investment income (e.g., interest, dividends) from banks or financial institutions.
• IT3(c) Certificate: For capital gains or losses from the sale of investments.
• Rental Income Records: If you earn income from property, keep detailed records of all rental received.
• Financial Statements: If you are a sole proprietor or run a small business, your annual financial statements are crucial. My Accountant offers expert small business accounting services to help you prepare these.
• Foreign Income Statements: If you receive income from outside South Africa.

Expense and Deduction Documents

• Medical Aid Certificates: From your medical aid scheme, detailing contributions for you and your dependants.
• Proof of Medical Expenses: Receipts for out-of-pocket medical expenses not covered by your medical aid.
• Retirement Annuity Fund Certificates (RA): From your retirement fund, detailing your contributions.
• Travel Logbook: If you receive a travel allowance and claim travel expenses for business purposes.
• Home Office Expenses: If you work from home and meet the strict SARS criteria for claiming home office deductions, keep records of relevant expenses.
• Donation Receipts: For donations made to approved Public Benefit Organisations (PBOs) if you wish to claim a deduction.

Other Important Information

• Previous Year's Assessment (ITA34): Useful for referencing previous declarations.
• Bank Account Details: For any refund due to you.
• SARS eFiling Login Details: Your username and password for the eFiling system.

Step-by-Step Guide: How to Submit Your ITR12 Online via eFiling

Submitting your ITR12 via SARS eFiling is the most common and efficient method. Here’s a simplified breakdown:

Step 1: Register for SARS eFiling

If you haven't already, you'll need to register on the SARS eFiling platform. Visit the SARS eFiling website and follow the registration steps. This involves creating a username and password and linking your tax reference number.

Step 2: Request Your ITR12 Return

• Log in to your SARS eFiling profile.
• Navigate to the 'Returns' menu, then 'Tax Returns', and select 'Income Tax (ITR12)'.
• Select the relevant tax year for which you want to submit.
• SARS will then generate your ITR12, often pre-populating certain fields with information they've received from third parties (like your employer or bank).

Step 3: Complete Your ITR12 Accurately

This is the most critical step. Carefully review all pre-populated information and ensure it is correct. Then, populate any missing fields using the documents you gathered:

• Personal Details: Verify your contact information and banking details.
• Income Sections: Input all income sources as per your IRP5s, IT3(b)s, and any other income statements.
• Deductions Section: Claim all eligible deductions such as medical aid contributions, out-of-pocket medical expenses, retirement annuity contributions, and donations.
• Asset & Liability Section: If applicable, declare assets and liabilities (e.g., if you own property or have significant loans).
• Capital Gains/Losses: Declare any capital gains or losses as per your IT3(c) certificates.

Remember, accuracy is key. Incorrect information can lead to penalties or delays. If you're unsure about any section, it's best to seek professional advice. Our tax consulting services can provide invaluable guidance.

Step 4: Submit Your Return

Once you are confident that all information is accurate and complete, click the 'Submit' button. You will receive an ITAA00 confirmation number, which serves as proof that your return has been submitted. Keep this number safe.

Step 5: Keep Records

After submission, save a copy of your submitted return and all supporting documents for at least five years. SARS may request these at any time for verification purposes.

Common Mistakes to Avoid When Submitting Your ITR12

Even seasoned taxpayers can make errors. Here are some common pitfalls to steer clear of:

• Missing the Deadline: Late submission incurs penalties. Keep track of SARS deadlines.
• Incorrect Banking Details: This can delay any refund due to you. Double-check your bank details.
• Not Declaring All Income: SARS has advanced systems to track various income sources. Failing to declare all income can lead to severe penalties.
• Failing to Claim Eligible Deductions: Many taxpayers miss out on legitimate deductions, leading to higher tax liabilities. Ensure you claim everything you're entitled to.
• Incorrectly Claiming Home Office Expenses: The criteria for home office deductions are very strict. Ensure you meet them before claiming.
• Ignoring Pre-populated Information: Always verify pre-populated data. While SARS aims for accuracy, errors can occur.
• Not Keeping Supporting Documents: If SARS requests verification, and you don't have the proof, your claims could be disallowed.

What Happens After Submission?

Once you've submitted your ITR12, SARS will process it. You will then receive an ITA34 (Notice of Assessment), which details how SARS calculated your tax, whether you owe SARS money, or if you are due a refund. If you disagree with the assessment, you have the right to object within a specified timeframe.

When is the ITR12 Deadline?

SARS announces specific tax filing deadlines each year. Typically, these are:

• Non-provisional taxpayers (via eFiling): Usually late October/early November.
• Provisional taxpayers (via eFiling): Usually late January of the following year.

Always check the official SARS website for the exact dates for the current tax year to avoid penalties.

Why Choose My Accountant for Your ITR12 Submission?

Navigating the complexities of tax law can be time-consuming and stressful. At My Accountant, our expert team is dedicated to providing accurate, efficient, and compliant ITR12 submission services for individuals and small to medium-sized enterprises. We ensure all your eligible deductions are claimed, your return is submitted on time, and you remain fully compliant with SARS. We also assist with company registration and comprehensive payroll management, ensuring all aspects of your financial compliance are covered.

Ready to Simplify Your Tax Season?

Don't let tax season stress you out. Let My Accountant handle your ITR12 submission with expertise and care. Contact us today to ensure a smooth and compliant tax return.