WRAPPING YOUR HEAD AROUND TAX

WHAT’S Tax? 

When Phumza started her first job, she was excited about her first salary. 

Unfortunately, when she got it, there were deductions she didn’t understand. 

Not wanting to cause a stir at the new firm, Phumza approached Scorpion Legal Protection, which she joined on her dad’s recommendation after finishing school. 

The professional Scorpion tax practitioner, who took on her query, explained to her what the deductions on her salary were and what they were for. 

What’s it for? 

Tax is the money government collects from the working class to create and maintain infrastructure.

This includes the building and maintenance of hospitals, schools and roads, among other things, and to pay civil servants including nurses, doctors, teachers and municipal workers. 

How does it work? 

Every person who earns a salary, wage or income should pay tax. Tax payments are usually deducted by your employer, but are your responsibility. 

By law, your employer is required to deduct it from your monthly salary, wage or income and pays it to the South African Revenue Services (Sars). 

What is a tax return? 

Every year between July and November, certain people are expected to submit a tax return to Sars. 

The receiver of revenue then checks the amount of tax you’ve contributed between March the previous year and February to see if it corresponds with the information on your return form. 

If you have contributed too much, Sars refunds you, and if you’ve paid too little, you’ll need to pay the amount owing. 

Who should submit a tax return? 

If you earn more than R350 000 in a tax year or your income is less but have any of the following: 

You’ve worked for more than one employer between March and February of a tax year, even if you only earned a little amount. 

You are employed, but also receive a monthly pension (like a deceased spouse’s pension).  You have medical aid. 

You have travel allowance. You have a pension fund or retirement annuity. 

Below are five things Scorpion’s Policy A offering can assist you with

Completing and submitting tax returns.

Helping you understand tax documents. 

Sorting out tax queries with employers or Sars. 

Helping with notifying Sars in case of fraud. 

Advice on Sars payments or garnishees. 

Please note this is just a summary of Scorpion’s Policy A. Visit www.scorpion.biz

How Scorpion helps 

Thanks to Scorpion’s expert tax advice, Phumza understands why tax is deducted from her salary. 

Scorpion Legal Protection can help policyholders with tax-related queries.