All individuals and companies that earn taxable money shall pay taxes to the South African Revenue Service (SARS). However, filing tax returns can be challenging since there are certain things you should know. For instance, if you pay too much tax than what you are required to do, you will be entitled to get what is known as a tax rebate. This article explains everything you want to know about the concept of tax rebates
How do Tax Rebates Work in South Africa?
When you pay too much tax, SARS will pay back your money, which is known as a tax rebate. This is one way of reducing your tax burden together with other exemptions you may qualify to get. SARS calculates the tax you should pay based on the money you earn and expenses you incur during the year. If you meet specific conditions that are considered in calculating taxes, your tax will be reduced.
When you get a rebate, your tax liability will be reduced, and you may not get the money. However, you will be paid back the excess tax if you have no credit. If you owe SARS some money, you will not get the rebate when it is applied. Instead, it will be used to offset the money you owe. Rebates are used as yardsticks to establish taxable thresholds. This jargon can be confusing to many people, so it is a good idea to enlist the services of a professional so they handle your tax returns.
How do I Claim the SARS Tax Rebate?
To claim your SARS tax rebate, request an eSTT refund first. You can do this by filling out Part A of the REV1600 form. Once you complete it, send it by email to Ibqueries@sars.gov.za. The following documents must accompany this form.
- Proof of payment- obtain a receipt from the eFiling website and print it.
- Certified copy of ID
- Write a letter to SARS requesting a refund, and make sure you sign it.
- Get an original bank statement or ABSA eStamped statement that is less than three months, or the internet/ATM generated statement. The statement must have your name, bank name, account type, account number, and branch code.
If your claim for a refund is denied, you will be notified, and you will also get the reasons for the decision. If the refund is successful, it will be processed and paid into your bank account within a few days.
How Much is Tax Rebate in South Africa?
The tax year starts on 1 March and ends on 28/9 February the following year. Now, we are in the 2024 tax year, which commenced on 1 March 2023 and ends on 29 February 2024. The following are the types of tax rebates available in South Africa.
- The primary rebate is R17,235 for all people
- The secondary rebate is R9,444 for taxpayers who are 65 years or above
- The tertiary rebate is R3,145 for taxpayers who are 75 years old or over
When Can I Expect My SARS Refund 2023?
When your SARS refund has been approved and processed, you can expect to get it in about 72 hours, which is equivalent to three days. Once SARS completes the assessment of your refund request, you should expect to get your money within the stipulated time. To get the payment fast, you should ensure your banking details are correct. The refund should be more than R100 to be paid through the banking system. Additionally, make sure you have no outstanding returns or debt since these can lead to denial of the payment. No audit or verification must be initiated on your tax account if you want to get your refund without issues.
Who Qualifies For Tax Returns?
People who qualify for tax returns belong to the income bracket of R500 000 or more. You should have one employer who is the source of income during a specific tax year. If you get money from different sources, you will not be considered. Other sources of income that are not considered include business income, rental income, travel allowance, taxable interest, and fringe benefits.
You should not have allowable tax deductions you can claim, such as travel expenses, medical expenses, and retirement contributions. If you meet the above requirements, you will get an auto-assessment from SARS. This is based on the data submitted by your employer to SARS. Information obtained from financial institutions, medical schemes, and retirement funds is used to generate the fund.
Once you accept the auto-assessment, you no longer have to file a return. However, check if all the details are correct. If there is incorrect information, you will experience problems with your tax return. If you have additional income, you should declare it.
All South Africans who earn taxable income must pay taxes to SARS. However, you should understand all the concepts involved so that you do not end up with a credit or paying excessive tax to SARS. If you realize that you have paid more money than required, you can request a tax rebate. First, check the requirements to see if you qualify for a tax rebate before submitting your request.
How to Unlock SARS eFiling portal
This comprehensive guide will teach you how to unlock SARS efiling, reset, and activate your SARS eFiling profile
eFiling Payments (Credit Push): How to Set Up Credit Push on eFiling
Credit push payments are one of the methods for paying for returns due to SARS. Here’s everything you need to know to utilize this SARS payment method
How to Deregister SARS Efiling
This article explains everything you need to know about how you can deregister SARS eFiling.
How to Apply for SARS TCC via eFiling
Here’s everything you need to know about eFiling, SARS, and TCCs, now known as TCSs.
How Long Does SARS Take To Pay After Audit?
How Long Does SARS Take To Pay After Audit? .This article explains different things you should know about SARS audits.
What is SARS eFiling?
What is SARS eFiling? There are many solid reasons to use eFiling, so we compiled this guide to eFiling to help you.
What Does It Mean If Your Tax Return Is Negative?
Discover what it means to have a negative tax return in South Africa, how to claim your refund and avoid common delays.
How to Dispute SARS Efiling Assessment?
This article explains everything you want to know about disputing SARS eFiling assessment.
How to Claim Work From Home Tax Credit In South Africa
This handbook will guide you through claiming the work-from-home tax-related credit in South Africa.
What Is A SARS Completion Letter
Today we look more closely at the SARS completion letter, and what receiving one from SARS means for your overall tax affairs
How to Pay SARS Via FNB
How to Pay SARS Via FNB. In this article, we will look at how customers of FNB can pay their taxes, the timelines on tax payment, efiling process.
How to Accept SARS Auto Assessment
This article will provide all the details you need about this new system and a step-by-step walkthrough on accepting your SARS auto assessment.