Frequently asked questions
WiseUp gives you the answers to your questions.
Question: Are there any initiatives available to assist the youth with obtaining work experience?
Answer: > In 2018, the Government launched the Youth Employment Service (“YES”) programme to assist with reducing youth unemployment rates in practical ways.
> The YES programme allows for unemployed youth to obtain up to 12 months work experience opportunities with companies registered with this programme.
> On 3 April 2023, President Ramaphosa praised the success of the YES programme that already placed more than 100 000 of the South African youth between the ages of 18 and 29 with companies.
> The YES programme also allows for youth to earn an income to help support their families with an estimated 61% of the placements coming from households who rely on social grants.
> For more information on the YES programme and how to either get involved or make use of the initiative, the following contact details can be used:
- Website: www.yes4youth.co.za
- Telephone: 087 330 0084
- E-mail: youth@yes4youth.co.za or corporatesupport@yes4youth.co.za.
Question: Who should submit an income tax return?
Answer: > As the youth of South Africa start their careers with their first jobs, they are also faced with having to pay income tax.
> There are quite a lot of requirements that must be complied with, however, the general rule is that everyone earning an income must pay tax.
> The following principles are quite important to keep in mind when establishing whether income tax must be paid or not:
- All income of an individual is considered, including but not limited to, salaries and interest earned on investment.
- Under South African law, the worldwide income of an individual is considered. This means that in today's time and age where it is possible to earn an income in a foreign currency while staying in South Africa, it will still be considered as an income for South African income tax purposes.
> There are also certain exemptions that may apply depending on the annual income of an individual. For example, during the 1 March 2022 to 28 February 2023 assessment period, a person younger than 65 years of age and who earned less than R91 250 for the assessment period does not have to pay income tax.
> Not all taxpayers need to submit an income tax return, even though s/he does have to pay income tax. For example, a taxpayer's employer can deduct income tax (Pay As You Earn – PAYE) from his/her salary on a monthly basis to pay over to South African Revenue Service (“SARS”). If this is the case and the taxpayer's annual income is less than R500 000 from a single employer, it might not be necessary to submit a tax return.
> A tax return is a form that must be completed and submitted to SARS in order to calculate the amount of income tax that must be paid or refunded.
> Be careful and get advice! The consequences of not complying with tax related laws and procedures can have severe consequences. Be very careful not to just assume that you do not have to submit a tax return or that you are exempt from paying income tax. No matter what your circumstances and annual income, always get advice and clarity.
> Visit the SARS Website at www.sars.gov.za for more information.
Question: How to submit an income tax return?
Answer: > There are various ways to submit an income tax return and it depends on what would be the best under each person's circumstances.
> The following platforms are available:
- eFiling: this is where you can submit your tax return electronically without having to visit a SARS branch. eFiling can be done at www.sarsefiling.co.za
- The SARS MobiApp allows for various tax related services, such as filing a tax return, to be done through the use of the mobile app.
- You can also submit your tax return at a SARS branch. Remember to make an appointment for a SARS agent to assist you with the process and to take along all supporting documentation.
> When making use of any digital platform, always be vigilant of potential hacking, scamming and other cybersecurity risks. Ensure that you use the correct websites as a lot of personal details will have to be captured.
Question: What supporting documentation is needed when submitting an income tax return?
Answer: > When submitting a tax return, it is not always as simple as just completing the necessary forms and the process is done. A taxpayer will have to be able to prove everything captured on the tax return. This means that a taxpayer must not throw away any important receipts or other documents that may be used when completing a tax return.
> Not only the income of a taxpayer plays a role, but there may also be certain deductions applicable. For example, certain medical expenses can be deducted for income tax purposes and the taxpayer must be able to prove those expenses by submitting receipts and so on.
> The following documents are some of the documents that a taxpayer might need when submitting a tax return:
- IRP5/IT3(a) certificate received from an employer. This document sets out, amongst other things, the taxpayer's remuneration received from the employer, whether or not the employer deducted PAYE, medical aid deductions and so on. The employer will provide this document to the taxpayer, or submit it directly to SARS.
- Medical certificates (usually in respect of medical aid deductions), as well as documents and receipts for medical expenses not covered by a medical aid.
- Certificates and details in respect of a pension and retirement annuity, as well as any other financial investment.
- If a taxpayer receives a travel allowance, SARS may request him/her to submit the travel logbook.
- Any other document in relation to income, expenses and deductions submitted with a tax return. Did you know… Smoking in the presence of children can infringe on a child's human rights and the law prohibits smoking in the presence of children in some instances.
Did you know…The Youth Employment Service programme allows for unemployed youth to obtain up to 12 months work experience opportunities with companies registered with this programme.