Difference between Vat and Tax numbers

Updated 29 March 2022

Q: What is the difference between a VAT registration number and a tax reference number. When do I use which one? Are they not the same thing?

What is Gross Remuneration?

Updated 28 March 2022

How is 3699 Gross Remuneration arrived at?

I have lost my SARS eFiling password and username.

Posted 28 March 2022

Please can you help me by giving me my password and user number, because I lost it and I am already registered with SARS.

How do you calculate leave days when paying out your employees

Posted 22 March 2022

Q: How do we calculate leave days?

Scenario 1: An employee who works 40 hours per week and who has a monthly basic salary of R17933.00 and has carried over 20 leave days of which we would need to pay out.  

Scenario 2: An employee who works 37.5 hours per week not 40 hours who has the same basic salary of R17933.000 and had 20 leave days to be paid, how would you calculate leave days?

 

A: You can calculate leave days as...

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I forgot my tax number, how do I get it urgently

Posted 22 March 2022

Q: I forgot my tax number; how do I get it urgently?

A: You can usually find your tax number on you IRP5 or payslip from your employer. If your tax number is not on those documents or if you are self-employed you can also phone SARS on 0800 00 7277 to check or you can request it online by following these steps: 

1. Visit the Read more →
   

   My IRP5 is incorrect - can I edit it myself on eFiling?

   Posted 17 March 2022
   
   SARS code 3601 on my IRP5 is incorrect - my employer is saying I received more than I actually got paid. My salary on my IRP5 (source code 3601) is R100 000, I then got deducted R25 000 PAYE, but when I actually got paid I only received R49 000 into my bank account. There are no other deductions on the IRP5.
   
   Can I modify it myself on SARS e-filing? This was a once-off payment for work done, but it now seems that my employer underpaid the actual salary.
   

   How do I pay tax on my rental income?

   Posted 17 March 2022
   
   I own two rental properties from which I earn rental income. This is my only source of income - I do not earn a salary. In the 2021 tax year I let one of the properties' monthly rental pay directly into my long-time girlfriend's account (R7500 per month). The monthly levies, rates and agency fees (deductible expenses) were still paid from my account. At the end of the tax year, my girlfriend paid the lump sum amount (R7500 X 12 plus interest) that had accumulated in her account back to me.
   ...
   
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   Why was my tax refund reversed by SARS?

   Posted 17 March 2022
   
   I have not received my tax refund and it is the 18th of the month. My tax return was submitted on the the 3rd of this month.
   

   Capital Loss on the disposal of my Primary Residence

   Posted 17 March 2022
   
   I sold my property, which is my primary residence, for R9 million. The initial purchase price was R7 million and I spent R1 million on improvements - the total base cost was therefore R8 million. If I apply the R2 million exemption, does this put me in a capital loss position?  (i.e R9m less R8m less R2m = -R1m)
   
   If yes, can I use this capital loss to offset capital gains in the same tax year, or carry it forward to the next tax year?
   

   Tax on Lump Sum payment - Provident Fund

   Posted 16 March 2022
   
   Hi,
   
   A friend received a lump sum payment from her provident fund to pay for a family members medical bills. Is she able to claim back some of the tax paid over to SARS for the additional medical expenses? She had previously received a lump sum payment on retrenchment, so this is the second lump sum recieved from the fund. She has no other income.
   

   Partnership in rental property - how to declare on my tax return?

   Posted 16 March 2022
   
   If I own 50% of a property do I only put my portion of the rental income and expenses in?
   

   Do I need to register for VAT if my income is all export related but my turnover exceeds R1m?

   Posted 16 March 2022
   
   I am a provisional taxpayer in South Africa working solely for a foreign company (my services are all export related) with my turnover exceeding R1 million a year. I know that exports are zero-rated for VAT. Do I need to register as a VAT vendor, even though my income would not be subject to VAT?
   

   Should source code 3699 reflect on your cost to company?

   Posted 16 March 2022
   
   Does source code 3699 include all employment income, so it should it reflect your cost to company?
   

   Do I need to wait for SARS confirmation for provisional tax return?

   Posted 16 March 2022
   
   I have successfully filed my provisional tax return for 2022 and would like to know if I need to wait for SARS to approve the amount or do I go ahead and pay the amount stated through the eFiling site?
   

   Is CGT applicable to Share Option vesting?

   Posted 15 March 2022
   
   I've received 1000 share options that vest over 4 years at 25% per year. After the initial vesting on 1 Jan 2022 I have the right to exercise the options, it's likely I will only exercise the options at company exit a few years later. When will I be liable for CGT?
   

   Can I claim against the use of my vehicle if the only code on my IRP5 is 3703?

   Posted 15 March 2022
   
   I have used my vehicle for official travel - there is only code 3703 on my IRP5. Can I claim travel expenses in my return?
   

   Money owed to SARS

   Posted 15 March 2022
   
   I want to understand why I am owing SARS and how to pay the money to SARS?
   

   How do I deduct rental expenses?

   Posted 13 March 2022
   
   

   When less than 100% of your property is being rented out, then you may only deduct a portion of your rental related expenses. This portion (i.e. percentage) is calculated by dividing the floor area of the space being rented, by the total floor area of the property (including garages and out buildings).

   Here’s an example:

   You have a 500 square metre, three-bedroom...
   
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   Tax for a Personal Service Provider

   Posted 10 March 2022
   
   Hi Tax Tim,
   
   I am a Personal Service Provider (PSP). My client withholds PAYE at 28% in the name of the PSP i.e in my company's name and not me personally, as an individual taxpayer. This concerns me because the PAYE tax credits sit in my company's name, but from an individual perspective I have not paid any tax on the salary I withdraw from my company.
   
   The PAYE refund, if any, will be paid into my company. How do I show the tax on my salary in my individual tax return? If I...
   
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   Freezing emigrants Retirement Annuities, how do I declare non-tax resident status?

   Posted 10 February 2021
   
   Hi TaxTim, please can I ask about emigration and Retirement Annuities (RA)?
   
   The new South African tax regulation, effective March 1, regarding emigrants' RAs being frozen for 3 years after financially emigrating:
   
   1. I was told the start of the 3 years is not from date of financially emigrating, but rather the declaration date of non-tax resident status, is this correct?
   2. If so, how does one declare oneself a non-tax resident?
   3. I may have already declared mysel...
   
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   Is there a limit on the contribution towards PAYE for tax on perks such as fuel?

   Posted 20 January 2021
   
   As part of my package I receive the benefit of a fuel card and car allowance (but I do not do any business travel). However, on my tax return for 2020 I had to pay almost R9k because of this benefit. I had thought that our Human Resource Department would have made adjustments to my PAYE so that I would be paying 100% of the applicable tax so that I do not have anything to pay when I do my tax return once a year. Our Human Resource person said that he was not able to set the PAYE so that I could in future pay 100% of the fuel and car allowance benefit, but was limited to set it at 80%. ...
   
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   SARS discrepancy sms

   Posted 5 August 2020
   
   I got a sms from SARS reviewing discrepancies identified between 3rd party (TaxTim) and my last Income Tax tax return. Also they are advising me that I should ensure that the information is captured correctly. My information is captured by Sanlam and assume it is correct. Please advise what the discrepancy could be? And why do they mention the word "discrepancy"?
   

   What does SARS mean by auto-assessment?

   Posted 27 July 2020
   
   I saw something in a news article about SARS issuing auto-assessments this year from 1 August. I tried to research but couldn't find much and this is all very new to me. Please can you explain what this is? Are there any new changes which I need to be aware moving forward? I have been filing my own tax return for the past years, but I hear that I might not need to do so this year.
   

   Why am I being auto-assessed on SARS eFiling?

   Posted 22 July 2020
   
   I received an auto-assessment from SARS. My husband did not receive the SMS but my friend also received an SMS saying she has been auto-assessed. Why have SARS introduced this new process? Why are there some being auto-assessed and not others?
   

   What happens to previous late/incomplete tax returns after a penalty has been paid in full?

   Posted 21 July 2020
   
   I have been working abroad permanently for more than three years and I reside outside of South Africa. I have never fully understood the tax rules and see that I have some penalties (fines) for late/incomplete submissions. I do not have any way of receiving all information needed to submit old tax returns, so I want to know what will happen when I pay the penalties? Will it just start racking up again for the same infringements or will I have a clean slate to do things the right way going forwar...
   
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