What happens on assessment?
All income tax returns that are completed and submitted to SARS are processed. The assessment determines the final income tax liability on all of the taxable income (including employment income, business income, interest, and rental income) earned by the taxpayer for the year of assessment. Processing includes the following steps: All of the income (including employment income, business income, interest and rental income) received by a South African resident are added together. • Amounts that are exempt from income tax are excluded. • Allowable tax deductions such as medical expenses, donations to approved public benefit organisations and wear and tear allowances are taken into account (all these deductions are subject to certain limitations). • The final income tax liability of an individual is reduced by a primary rebate, and in the case of an individual who is 65 years and older by an additional age rebate which may reduce the tax liability to zero. This means that these rebates or
