Money owed to SARS

  Written by Nicci   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?

  Written by Nicci   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

  Written by Nicci   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?

  Written by Neo   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?

  Written by Neo   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

  Written by Neo   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?

  Written by Neo   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?

  Written by Neo   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?

  Written by Neo   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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SARS sent me an SMS about auto-assessment? Is this legit?

  Written by Neo   Posted 20 July 2020

I received an SMS from SARS which mentioned something about an auto-assessment. I have not heard of this before. I don't trust anyone these days, and because of that I just want to ensure that this is legit - do you think this is a scam?

Can I reject the SARS auto assessment and fill in my tax forms?

  Written by Neo   Posted 20 July 2020

I received an auto-assessment from SARS and I am not certain how to work around it. What I do know is that I would prefer to complete a tax return as normal, like I usually did in the past years. Would this be possible? If I reject it, what will happen?

Income tax on drop-shipping

  Written by Neo   Posted 3 July 2020

I am currently doing drop-shipping, the products which come from over sea, so I would like to know what income tax would I need to pay. What do I need to know about this if I am doing it for the first time? Could you kindly share tax material with me which I can use to also work my way through this.

Individual Tax Consultation

  Written by Neo   Posted 18 June 2020

In January 2018 I stopped working as a full time employee and for the 2018/2019 tax year I did various things (including foreign travel and work) and earned different kinds of incomes. I did not register as a provisional taxpayer as at that stage I really did not know how the year was going to pan out and if I was going back into full time employment again. I would like to settle any tax I may owe for the 2018/2019 year, however with my different incomes, working out the country for more than 18...

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What is cut-off date for tax return submissions?

  Written by Neo   Posted 18 June 2020

What is the cut-off date for submitting a tax return this year? I am struggling to get a hold of my IRP5 from my previous employer and I am therefore concerned that I will miss the submissions cut off date.

Tax deductions exceeds the tax paid

  Written by Neo   Posted 28 May 2020

What happens if my Allowable Tax Deductions exceeds the tax paid in the same year. Logically I should only be able to claim back the actual tax paid? It will be Additional allowable Medical claims which will not be covered by the medical aid. These amounts plus smaller deductions will push the claims to over and above the tax payable amount.

First business tax submission date?

  Written by Neo   Posted 28 May 2020

I have a Pty Ltd that was registered in February, the Provisional Tax payments must be made in April and October. SARS says I must make tax payments from the 2021 period. The date of liability for provisional tax: 2020/05. When, according to that, is the first time I have to submit tax reports, was it this past April 2020 already? Also, when is the "major" tax submission due, not the provisional one, but the annual one? I would like to do it with TaxTim as my company is small.

I was...

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How to check available funds at SARS

  Written by Neo   Posted 28 May 2020

If you have never filed for a tax return before, how do you go about checking if there are funds owed to you at SARS? I would like to start filing my tax return for this year as I have been unemployed for a long period, but now I am back in the workforce.

Learning disablity claimable from SARS

  Written by Neo   Posted 28 May 2020

I pay for a scriber to assist my daughter that has a learning disability, I would like to know whether I will be able to claim this expense from SARS. I did not register my daughter with SARS or SASSA. So, I do not know what process to follow regarding this matter would be.

Voluntary sequestration and eFiling profile

  Written by Neo   Posted 22 May 2020

I just had my voluntary sequestration of estate approved by the high court on the 24th of March 2020 and I now need a new tax number. SARS say I can do that through SARS eFiling and I would like to know how I can do this? The problem I have experienced with trying to register a new SARS eFiling profile is that after I input my name and ID number the system tells me to login with my existing profile number.

TaxTim Filing before tax season

  Written by Neo   Posted 22 May 2020

I have registered on TaxTim and have also granted you permission to get my information from SARS. Should I wait till tax season begins before I complete all the questions on TaxTim? I am however still waiting for my IRP5 from my employer. I also have property that I am renting out and have a logbook. Please advise.

Contract worker and Tax

  Written by Neo   Posted 22 May 2020

I was retrenched at the end of 2017. My last Tax Return was done in the year 2018. Since April 2019 I have been receiving income for work done on a contract basis and the company indicated that I need to see to my own tax affairs. How do I go about filing my tax return for 2020? Your assistance is highly appreciated.

IRP5s and companies paying RA for employees

  Written by Neo   Posted 7 May 2020

If a company is paying into a Retirement Annuity (RA) for employees when preparing an IRP5, using source code 3828 as income, would we then need to use source code 4006 for the same amount? In other words, source code 3828 for the amount paid by company on behalf of employee (this amount will be added to the income total) and code 4475 for the same amount. If an employee has not contributed anything code 4006 will be 0, but will still have to appear on the IRP5?

Financial Emigration

  Written by Neo   Posted 7 May 2020

I have recently moved to the United States. I am now living and working there. I would like to financially emigrate. However, I also still have to file taxes for the year 2019, but as soon as this has been finalised I would like to become a non-tax resident in South Africa. Would TaxTim be able to assist me with this process or would you please be able to recommend some avenues I could utilise to complete financial emigration process, as soon as possible?

Foreign Employment and Tax Implications

  Written by Neo   Posted 29 April 2020

I am a South African resident currently employed full time. I earn a monthly salary of R23000 (before tax). I have recently started consulting part time for a foreign company that will pay me in dollars. On average $2000 every 3 months.

Provisional Tax and Rental Income

  Written by Neo   Posted 29 April 2020

I have filed and completed the 2017 personal income tax for myself. I started receiving rental income from my property in March 2017. Where do I declare this income? Is it part of provisional tax and will I pay penalties for late submission?

Also,
1. The property is owned by myself and my wife. Will we both need to file tax returns for this Rental Income?
2. Does this mean a whole new tax return must be submitted, or is it only necessary to complete the IRP6?
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