On Tuesday, the South African Revenue Service (SARS) announced that it has increased the tax return threshold from R350,000 to R500,000.

This means that individuals earning less than R500,000 will not need to submit personal income tax returns (ITR12).

“People should be very wary not simply ignore filing their normal tax returns as there is always the possibility of getting a tax refund due to additional tax deductions and/or tax credits only allowed upon assessment,” said Prof Herman Viviers of North-West University.

Viviers also cautioned that although individuals might earn less than R500,000 a year, they should take into account their retirement annuity fund contributions and allowances (received from an employer) as these usually results in additional deductions to be claimed upon assessment which could result in a possible tax refund.

Fortuin Accounting Services