Provisional tax returns won't come automatically

Provisional taxpayers should not wait for their provisional tax returns to arrive in the post as the SA Revenue Service (SARS) is no longer automatically issuing provisional tax returns.

"Provisional taxpayers must now request the return from SARS and as a reminder, the first provisional tax return for the 2011 tax year is due by no later than August 31, 2010," tax consultants Ernst & Young said in a statement on Monday.

Vedika Andhee, director for tax, said provisional taxpayers had to be pro-active and request the provisional return, complete it, make payment where required and submit the return to SARS, even if it is a nil return.

"It is highly recommended that provisional taxpayers use e-filing as it is easy to request a provisional tax return and submit it to SARS," Andhee said.

If not using e-filing, taxpayers must collect a form from their SARS office.

"For those individuals who are unsure whether they are registered as provisional taxpayers or not, it is recommended that they contact their local SARS office."

Andhee warned that those provisional taxpayers who did not request their provisional tax returns from SARS would probably be liable to a penalty and interest.

She said a provisional taxpayer was any person who received income which was not subjected to employees' tax.

However, the following exemptions applied for persons under the age of 65 years if the person's taxable income was below the tax threshold (currently R57,000); or if the taxable income (after the exemptions) in respect of interest, dividends and rental income did not exceed R20,000.

Exemptions for persons over the age of 65 years were applicable if taxable income was less than R120,000, provided the person's taxable income was from interest, dividends and rentals.

Where any portion of a person's income was derived from a business, the exemption did not apply.