Get ready for the tax season ahead
We chat to Sanlam Private Wealth tax practitioner, Rene Klein, to find out what to consider when preparing for the 2022 tax season
Depending on your financial situation, the process of completing your annual tax return may be a complicated one. It’s therefore always advisable to obtain professional assistance to ensure that you’ve covered all the bases. With this in mind, we’ve put together a checklist of useful questions to discuss with your tax practitioner.
When should I file my tax return?
For non-provisional taxpayers, the tax filing season opened on 1 July 2022 and ends on 24 October 2022. Provisional taxpayers may file returns until 23 January 2023.
What are the tax implications of donations, as well as medical expenses?
Many taxpayers are unfamiliar with the process of donating to Section 18A-approved organisations, which could entitle you to a deduction of up to 10% of your taxable income. Your tax practitioner may also request evidence of medical expenses paid out of pocket during the assessment year, in addition to your medical aid contributions.
What about estate duty?
It’s important to draw up a comprehensive estate plan with a fiduciary specialist – encompassing both your local and offshore assets and taking into account taxes and duties to be paid both in SA and elsewhere. Read more about estate planning here.
What happens if I’m emigrating and wish to cease tax residency with SARS?
It’s crucial to inform SARS in writing. The cessation date must be included on your latest tax return and all details updated, since the e-filing profile is the mechanism used to apply for your tax emigration clearance.
What are the consequences of non-compliance?
SARS can impose severe penalties – for example, penalties of up to 200% can be imposed for understatement of income from both local and foreign sources.
For an annual fee, our tax compliance team will provide an all-inclusive tax administration and compliance service for private wealth clients, deceased estates and trusts. Contact Rene Klein on +27 (0)11 778 6662 or at firstname.lastname@example.org.
Read more about Sanlam Private Wealth here.