Category FINANCIAL ADVISORY TIPS

​​ALL FORMS OF RENTAL INCOME MUST BE DECLARED TO SARS

​​ALL FORMS OF RENTAL INCOME MUST BE DECLARED TO SARS
Tshwane, 11 March 2021 – The South African Revenue Service (SARS) wishes to advise property owners whose properties are located in South Africa and who host fee-paying guests that the rental income they receive must be declared in their income tax return.

This is the same principle that applies to any person who has rental income from letting out their property as a home-owner, placing them under the same obligation to declare such rental income to SARS.

A property owner is also required to register as a VAT vendor with the accompanying obligations, if the short-term rental income exceeds R1-million in a 12 month period.

SARS is working hard to provide clarity and certainty for taxpayers to enable them to meet their obligations effortlessly. We also strive to make it easy for taxpayers who are willing to comply. Our approach has always been that every taxpayer should pay their fair share.

We are however, equally determined to make it hard and costly for non-compliant taxpayers not willing to meet their obligations. We are working hard to improve system capabilities, in order to detect those taxpayers who do not comply by using data to identify risk.

Early evidence has highlighted the need to focus on improving compliance in this sector of property owners who derive income from fee-paying guests.

Property owners who, to date, have not declared rental income are encouraged to regularise their affairs with immediate effect. Affected Taxpayers may choose to use Voluntary Disclosure Programme (VDP) which offers more favourable terms. Failure to regularise your affairs, may place taxpayers at risk and should they be selected by SARS for an audit, the more stringent normal processes will apply.

The benefit of using the VDP is that it offers more favourable terms for an assessment in terms of the penalty amount.

Taxpayers are reminded that failure to comply with their tax obligations may result in administrative penalties being imposed in addition to interest, or even criminal action being taken against them.

The VDP unit at SARS can be accessed directly at VDP@sars.gov.za.

SARS warns of refund scam in South Africa as tax deadline looms

SARS warns of refund scam in South Africa as tax deadline looms

Staff Writer8 December 2020

The South African Revenue Service (SARS) has issued a warning to taxpayers to be wary of persons posing as ‘tax practitioners’ or ‘tax experts’ who promise that they can secure a refund from SARS.

The tax collector said that businesses and other organisations must also beware of third parties such as unknown payroll companies who offer to assist them with their PAYE submissions.

“SARS is being inundated with desperate calls from honest taxpayers who fall victim to these criminals and scammers who pocket the refunds for themselves and their accomplices as they often operate as syndicates.

“In some cases, these fraudulent submissions are the cause of delays that are experienced by law-abiding taxpayers when SARS has no other option but to verify the information that was submitted by scammers to SARS.”

SARS said that taxpayers who willing participate in such fraudulent activity in expectation of an illegal refund will be prosecuted along with the scammers.

“SARS urges honest citizens who suspect such criminal activity to provide information SARS. They can contact SARS anonymously using the number 0800 00 2870 or by anonymously completing an online form available on the SARS website www.sars.gov.za.”

Provisional taxpayers who use eFiling have until 29 January 2021 to submit their returns.

“Taxpayers who have received auto-assessment from SARS, which means their returns have automatically been filed and assessed, are reminded that they must accept the assessment or edit their return on eFiling.https://1f2516ecbc92ac0149edece12ce7ab05.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html

Tax season for individual taxpayers who file at a branch closed on Thursday 22 October 2020.

The revenue service said it will ‘deal decisively’ with non-compliance such as the non-submission or late submission of returns. However, SARS said that not every taxpayer needs to submit a return.

Taxpayers who meet all of the following criteria need not submit a return:

  • Their total employment income for the year before tax is not more than R500,000;
  • They only receive employment income from one employer for the full tax year;
  • They have no other form of income such as car allowance, business income, and rental income, taxable interest or income from another job;
  • They don’t have any additional allowable tax related deductions to claim such as medical expenses, retirement annuity contributions and travel expenses.

Taxpayers who are yet to file can download the SARS MobiApp from the Playstore or Appstore and easily perform the following functions among others

Submit Your New Post
[user-submitted-posts]

SAcoronavirus.co.za

For more information on COVID-19 and government regulation: Click here

Emergency Hotline: 0800 029 999 WhatsApp Support Line: 0600-123456