Chapter 6
Tax assessments
Once a year, your employer must issue you with an IRP5 tax certificate that shows the total wages that you earned and the total tax that was deducted. If you are younger than 65 years and you earn more than R99 000 per year, you have to pay income tax. If you are 65 years or older but younger than 75 years you only pay tax if you earn more than R153 250 per year. If you are 75 years or older, you only pay income tax if you earn more than R171 300 per year. These figures apply for 2026/2027 tax year. If you earn more you qualify for tax and usually it is deducted by your employer and paid over to SARS. If you earn less than R2.3 million a year, and you qualify as a microbusiness, you can pay a fixed percentage and not submit a tax return. Check the SARS website for more information. If you earn more than R2.3 million a year the SARS assesses your earnings when you fill in a ‘tax return’. You fill in a tax return form and send it with the IRP5 to the SARS. Assessment means checking up on the tax you pay to make sure you haven’t paid too much or too little tax.