If you earn less than R350,000 in a year, you may not have to file a tax return in 2017 according to recent communication from SARS. However, this could mean you miss out…
1. No return, no refund
A tax refund is money that you have overpaid on your taxes and money that belongs to you. Why let SARS hold on to that cash by not submitting a return? Simple things like claiming medical expenses or working on an extra job, could trigger a tax refund for you.
2. You can’t access your retirement fund.
Should you retire or get retrenched, and need to take money out of your retirement fund earlier than planned, you need to be tax compliant.
3. You can’t borrow money.
Furthermore, if you wish to borrow money in the form of a mortgage or even a long-term loan, you will need a Tax Clearance Certificate. This can only be obtained if all your returns are up to date and have been filed appropriately.