Tax season can be exciting and confusing at the same time. In fact, this is a time where people expect to be paid back by the government for the tax deducted from the salaries. For some businesses, it’s time to pay back the tax collected during the course of the year. Either it’s a period of high activity and it can also bring a lot of overpowering questions to the mind.
Because tax season only comes once a year, it always seems like a confusing exercise because the mind is not used to it. However, there are many tax practitioners who can help you file appropriately. People should not fear tax filing season because it is the opportunity for you to declare how much money you earned in the prevision financial year and how much should be deducted as tax.
An IRP5 is a document that everyone will be talking about during this season. Because its documents declare and summarize all financial earnings for the year. As a result, your first step to filing your tax starts with compiling an accurate statement of your earnings. That is where the IRP5 form comes in.
Today I am sharing all I know about the IRP5 and all frequently asked questions Like.
- What is IRP5?
- How important is IRP5?
- How to apply for IRP5?
- Where to get IRP5?
I will not end there but consider more information that you could need to accurately use the IRP5 form. In this way, you can avoid a lot of confusion and nightmares that come with unintentional tax evasion.
What Does IRP5 Stand For?
IRP5 is a code name for a summary of your earnings for that year. It summarizes your income and deductions accumulated in the past year. In most cases, the financial is measured from the month of March to February of the next year. This is the period SARS will use to calculate your tax owed to them.
How do I Apply for IRP5?
SARS e-filler website is your number one place to visit. You can get your IRP5 there and choose the option to download, edit, print and finally filling it online. Have no worries about payments, because the form is free of charge to all tax practitioners, taxpayers, and businesses. This portal can be used to calculate and make payments online simultaneously or at the same time.
When Should I Receive my IRP5?
You should get your IRP5 (issued by your employer) after the end of the tax year- that is February. If, however, you don’t receive an IRP5 and no amount of pleading with them will help, you can go to the SARS e-filler website and then download a copy.
How do I check my IRP5 Status?
You can go to the SARS eFiling website and then check on your profile to see if your IRP5 has been submitted to SARS. This should have been done by your employer. This can be done by requesting your Tax Return in eFiling and it should be already populated with your IRP5 details.
Can I Get My IRP5 from SARS?
Ordinarily, you would not need to get an IRP5 by yourself; your employer should have done that for you. however, you would need to get the IRP5 form by yourself if you are self-employed, or if you contract for a company that is not bound by South African tax laws. If you have not had tax deducted from your salary, you will not receive an IRP5.
In this case, you need to go to the SARS eFiling website, and then tick the opening wizard to indicate you received “Local Business Trade and Professional Income.” Of course, you will then need to fill in the details in the relevant section.
You have made the best decision by trying to ensure that you are on the right side of the tax laws, by getting the IRP5 form by yourself. However, it may be a good idea to question whether or not you are being fairly treated by your employer. This is because most employers who shy away from reporting employee tax are usually the same kind of people who fail to pay their workers the proper wages and take care of workers.
How do I get an old IRP5?
If you lost an old IRP5, and you need to have on some kind of official records, then you should contact your old employer with whom you worked at the time, and request a copy. If the company no longer exists and you cannot obtain an IRP5, the available option would be to go to a police station and swear an affidavit to this effect. Whatever official document you wanted the old IRP5 for should also accept an affidavit.
Does the IRP5 Expire?
IPR5 is completed every year and is a summary of your earnings and deductions for the last tax year. Despite the fact that you will be issued with a new one at the end of the new tax year, it cannot expire.
Who is Responsible for the IRP5?
It is the employer’s responsibility to furnish his employees with IRP5 tax certificates. The IRP5 indicates that all employers should make the tax remittances directly to SARS who are responsible for the administration of all tax-related matters in South Africa.
However, in the event that you are a freelancer, a self-employed person, or if you work for a company that does not make tax remittances to the South African government, then it becomes your direct responsibility to fill the IRP5, and make all other proper documentation with the South African Revenue Service.
Is your Tax Number on IRP5?
Yes, your tax number also called (SARS number) is indicated on your IRP5 document.
When can I Submit my IRP5?
The IRP5 is due for submission to the tax authorities at the end of each tax year. The South African tax year usually runs from March of one year to February of the next. Please remember that ideally, this should be the duty of your employer. Your employer should pay all deductible taxes directly to the SARS, and then issue you with an IRP5 certificate showing the earning and deductions for the year under review.
However, if you are self-employed then you can visit the SARS e filler website, and then provide your earnings and then make the payments. You should do this at the regular time, at the end of the tax year.
Can I have multiple IRP5’s e-Filing in one year?
Sometimes, when one is engaged by multiple employers, or when one is employed but still also doing business on his own, or still also engaged in a contract or some other activity through which he receives a lump sum of money, one is required by law to make this earning known to the tax authorities, and so pay the proper amount in taxes. In order to do this one may have to use multiple IRP5 tax forms.
On the first page of the eFiling wizard, just enter the number of IRP5’s that you have in the number entry box. After doing that, you just have to click the button to generate your tax return form. Of course, you will then be presented with multiple empty IRP5 documents for you to fill in.
You do not have to worry about adding up any amounts or trying to combine multiple earnings into one IRP5 form. Just go ahead and include each IRP5 separately on your single ITR12 tax return for the year. Your ITR12 has provisions for you to fill in the details in this way.
The e-Filing allows you to add up to 15 IRP5s, but if you have more, you can present the first 14 separately, and then add all the income for the rest of the IRP5s together on the last one.
Should I correct my IRP5 myself?
Sometimes the question arises whether or not one is allowed to make corrections on his IRP5 when it is observed that there are wrong entries. You may want to know if you should submit it as received, or make changes. If you have noticed any wrong entries or if your bank details are not correct, this is the correct thing to do.
You would need to contact your employers and then request them to reissue you the correct document both to you and SARS. Furthermore, there is no need for you to make changes to your banking details on the IRP5 you can fix them on your tax return yourself.
What to do when SARS needs an IRP5 which I never received?
Sometimes you did not receive an IRP5 perhaps while working with a previous employer, or sometimes even with a present employer who just cannot locate the IRP5 form. Sometimes, that can affect the refunds which you should receive from SARS, because SARS may ask for verification.
In that case, you should then go to the police station and swear an affidavit that you are unable to retrieve the IRP5. The police will issue you with an affidavit which is a legally binding document. You then take the affidavit with you to the SARS office, they will submit your return for you. You can also upload this affidavit onto the eFiling portal on the SARS website.
It is not only good for the country when you pay your taxes, in fact, it is also good for your emotional well-being and the future of your job or business. Many people find themselves on the wrong side of the law for skipping to pay their taxes.
You don’t want to be one of those guys, trust me on that. It’s no secret that tax matters comes with some difficulty to understand how it works. This is a major contributing factor to why the majority of the population failing to file their tax returns every year.
That is why it is to the people’s advantage that their employers file the IRP5 directly, and only provide certificates to the employees.
Furthermore, this can be taken as a scale by which the employer is measured as to whether it is a good company with the interest of the workers in mind.
It is a well-known fact now that companies that fail to file tax returns are usually the same ones that fail to make contributions to employee provident funds, and employee insurance schemes.