What happens once I've submitted my tax return form?
Posted 6 April 2022
One of the questions most asked when it comes to tax season, is “what happens now that I’ve submitted my income tax return, when do I get my refund?”’
If you’re due a tax refund then you will probably get the money deposited into your account within a few days. SARS will also email or SMS you telling you that an IT34 (Summary of your return and refund) and ITSA (Income Tax Statement of Account) have been issued. They will detail your tax refund (tax back) if any. So look forward to that deposit into your account. ...
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How to calculate Tax on Overtime
Posted 6 April 2022
Question from Kelly:
How do you calculate tax on overtime?
Does the overtime put you in a higher bracket (pay higher tax percentage) for one month only if you received overtime in one month only?
e. G. Monthly income = R12050
Overtime = R4600
No benefits
How much tax for that month?
TaxTim reply:
Yes for that month you will be taxed at a higher rate as the PAYE is deducted based on the tax tables which are annualized.
Please have a look at this:
This is your take home pay: R14662
...
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Car vs car allowance tax
Updated 6 April 2022
From a tax perspective which is more beneficial to an employee: a car allowance or a company provided vehicle? What would the impact be on either if the employee does not travel sufficient business kilometres on both?
Shareholder Loan and own company
Updated 5 April 2022
I have a loan with my company (payable from the company). I would like to know what the effects are that we need to consider regarding interest-free loans? I am aware that we can create a tax deduction for the company and I will have the interest exemption, but I feel there is something I'm missing?
Also if the shareholder already exceeded his R23k exemption, will it be fine if we do not levy any interest on this loan? Will there be any unknown tax consequences for that?
...
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How do I account for online Forex Trading in my income tax return?
Posted 5 April 2022
A little background on myself. I am a salaried employee of the department of health in South Africa. I am registered with eFiling and have been submitting tax returns since 2008/09.
I have a hypothetical question about forex trading. If I make say R300 000 suppose in the 2012/2013 tax year and the amount I deposited was about R50000to fund the account, then what would my taxation be? Or at least what would the percent on taxation be and on which amount would that percentage be taken off? The net or the total?...
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How to calculate provident fund deductions for 2016/2017?
Updated 5 April 2022
Please can you show an example of how the employer and employee's provident fund will affect the monthly tax 2021/2022. I still do salaries manually.
Confirmation letter
Updated 4 April 2022
I received the following confirmation letter, what does it mean? Will I receive my refund within the next few days or what?
Dear Taxpayer
VERIFICATION OF ASSESSMENT
We refer to the verification of your assessment for the 2021 tax period. Please note that no adjustment has been made to this assessment. However, in terms of the Tax Administration Act the South African Revenue Service reserves the right to conduct further reviews in future if required. Should you have any queries please call the SARS Contact Centre on 0800 00 SARS (7277). Remember to have your ID number or income tax number at hand when you call to enable us to assist you promptly. Sincerely...
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Tax deduction - Asset write-off for small items
Posted 3 April 2022
Is it true that the acquisition of "small" items at a cost of less than R 7000 per item may be written off during the year of acquisition? I bought a laptop for R 6999.00 in December 2012. I am an IT contractor.
What does code 3801 and 3810 on irp5 stand for? If fringe benefits why wont they appear on payslip?
Updated 1 April 2022
I am currently completing my 2 daughters, my son in law, my husband and my tax returns for the 2015 tax year and I am unsure of code 3801 and 3810 on my daughter's tax return. What could these fringe benefits be? I don't see it on her payslips? Her salary structure is that her salary as a cash amount and travel allowance on her payslip as well her medical aid, disability, provident, Income protection insurance and ancillary fee but her IRP5 does not show the above on her IRP5?
Confused! Doe...
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How do I know that I owe sars or they owe me?
Posted 1 April 2022
Q: How do I know if I owe SARS or not
What does a negative tax refund amount mean?
Posted 1 April 2022
Q: What does a negative tax refund amount means
Is VAT on commission subjected to income tax?
Updated 31 March 2022
If an individual who is a registered as VAT vendor acts as an Agent and earns commission ad obviously charges output tax and declares it to SARS.
I.e. Someone who has invoiced out R100.00 and declared an output tax of R13.04 to SARS, when the time comes to file their personal income tax does the person have to declare the same amount being R86.96 excluding VAT as their commission income and do they have to pay income tax on the above amount?
Will that not be double taxati...
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How do independent contractors get taxed?
Posted 31 March 2022
I will be taking a new job that requires me to be a contractor. There are mixed opinions on how contractors get taxed. The consulting company assures me this is a flat rate of 25%, but on reading SAICA's website I found this little nugget: " If the independent contractor works more than 22 hours a week, he/she must be taxed in terms of the income tax tables".
I will definitely be working more than 22 hours a week, can you tell me things will work, please?
The question of tax relates to how you are perceived to be working for the "employer" to whom you will be contracting out to...
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Drop-shipping and taxes
Posted 31 March 2022
Q: Tax on Sole Proprietor Income
How should an online freelancer pay tax?
Updated 31 March 2022
Hi there, I need some advice. I currently work full-time but will be going freelance from April. I have already started some freelance work on the side, and wanted to know how I should go about paying tax for this? Most of the Freelance work I am doing is on an online website (for countries all around the world) and I transfer the funds into my bank account each month. No tax is taken off of this by the website, so I wanted to find out how I should go about paying tax, would it be a monthly or y...
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Independent Contractor versus Personal Service Company
Updated 30 March 2022
I'd like to get some clarity on whether there is a difference between an Independent Contractor and a Personal Service Company?
How do I see if SARS owes me money?
Posted 30 March 2022
How do I see if SARS owes me money?
Calculation of fringe benefit tax on use of a company car. / deduction claim
Updated 30 March 2022
Calculation of fringe benefit tax on a company car. Car owned by the company used for business purposes and a small amount of private (home to work etc) Codes 6020 and 6035 are used. One is for the value of the vehicle and the other is the amount taxable. Does this get added to the taxable income? will code 6035 be the one that contains the taxable portion?
What is UIF
Updated 30 March 2022
Is UDF the same as tax?? and if not do you know what the diff is??
Negative amount on my SARS statement
Posted 30 March 2022
Q: Negative amount on my SARS statement
How would I calculate my rate per hour if my salary is R15000 per month
Updated 29 March 2022
How do I calculate my hourly rate if my salary is R15000 p. Month before deduction
How will my 13th cheque / bonus be taxed?
Updated 29 March 2022
How do you tax 13th cheque bonus if you earn 14560. 88 as basic salary before deduction
How to calculate gross from net salary
Updated 29 March 2022
How do I calculate gross salary if given a net salary? The gross salary should include the UIF and PAYE per month? For example, if someone's net salary, that is the amount that goes into the bank account is R50000. 00, what is their gross, considering only two deductions, that is UIF and PAYE?
Difference between income tax number and PAYE reference number?
Updated 29 March 2022
Q: What is the difference between Income Tax number and PAYE Reference number?
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?
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