2009 Tax Deadline for SA property Owners is Fast Approaching!

According to expert tax, financial and migration group 1st Contact, the 2009 deadline set for 20 November 2009 is fast approaching. 1st Contact affirm that many South African property owners living and working abroad are unaware of their obligation to register for income tax, making them eligible for the submission of an annual tax return. The failure of 2009 tax return submissions will be regarded as a criminal offense by the South African Revenue Service, which will result in penalties being charged, where the severity of these penalties is on the increase. 1st Contact upholds the importance of tax submissions from a long-term perspective in order for individuals to be able to access several benefits further down the line. Besides this it is important to consider that property transfers cannot happen without having an up to date tax file.

According to 1st Contact, this process can be an easy and fast one, where more info can be accessed on www.efiling.co.za
1st Contact has provided the following advisory tips in order to contextualise the issues affecting South African property owners:

  1. In order to transfer property in South Africa, it is essential to have tax clearance certificate.
  2. If you own property in South Africa which is generating a passive income stream in the form of interest, dividend and rental income, this will need to be declared to the South African Revenue Service. Individuals whose passive income is in excess of R 10 000 a year will become provisional tax payers.
  3. Provisional taxpayers have now more time to submit their Income Tax returns, the deadline was extended from 20 November 2009 to 28 February 2010, only if individuals meet the following three conditions:
  • They must file using eFiling or e@syFile
  • They must be compliant taxpayers (i.e. no outstanding returns)
  • They must make payment within 7 days of the date of the assessment.

Failure to settle the total tax liability by the deadline may result in interest being levied on any underpayment. In the case of an overpayment, interest is payable to the taxpayer. The new penalty system will be in effect as of 24th of November. Depending on the size of the taxable income the penalty can be up to R 16,000.00 per month of non compliance.


Assessed loss



R0 – R250 000



R250 001 – R500 000



R500 001 – R1000 000

R1 000


R1 000 001 – R5 000 000

R2 000


R5 000 001 – R10 000 000

R4 000


R10 000 001 – R50 000 000

R8 000


Above R50 000 000

R16 000

In order to safe guard from incurring unnecessary and burdensome penalties from the South African Revenue Services, 1st Contact will be able to assist you to ensure the efficient and smooth running submission of your annual tax return by:

  • Submitting an income and expense declaration to SARS on your behalf and ensuring that the correct information is reflected
  • Monitoring your completed assessment, to ensure that it is accurate, and should any errors be reflected, we will object to the South African Revenue Service on your behalf.

For more information, please contact 1st Contact SA Tax on
satax@1stcontact.com or 0844 880 1814 (From the UK) or 021 657 2190 (From SA) or read more info here.

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