Self employed, how do I pay my tax to SARS?

  Written by Alicia   Posted 7 April 2022

Q: Self-employed and tax payable to SARS

Freelancer and Tax payments

  Written by Nicci   Updated 1 April 2022

I am currently working as a freelance artist who just started earning money from the work which I do, but at the moment I earn approximately R600.00 a month. I also have not been working for a long time before I began with the freelance job, it has been just over 7 months. Do I still need to pay my taxes even though my income isn't fixed and stable? If that is the case I need help in knowing how I can calculate how much of the tax I would need to pay.

Drop-shipping and taxes

  Written by Nicci   Posted 31 March 2022

Q: Tax on Sole Proprietor Income

How should an online freelancer pay tax?

  Written by Marc   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

  Written by Nicci   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 pay tax on my rental income?

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

  Written by Nicci   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?

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

  Written by Nicci   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?

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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Income tax on drop-shipping

  Written by Nicci   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 Nicci   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 Nicci   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 Nicci   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 Nicci   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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Contract worker and Tax

  Written by Nicci   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.

Foreign Employment and Tax Implications

  Written by Nicci   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 Nicci   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?

Company Income Tax Due date

  Written by Nicci   Posted 22 April 2020

My company was registered in April 2019 with a year end in July 2019. I submitted a provisional tax return in August 2019. When is the Company Income Tax tax return due? I have checked my tax compliance and it says that my 1901 tax submission is not compliant but my understanding is that my company wasn't registered then. So, should I submit a zero provisional tax return for 1901?

Outstanding Provisional Tax

  Written by Nicci   Posted 22 April 2020

I think I needed to submit my last tax return for year ending 29 Feb 2020 as a provisional taxpayer. I have now unfortunately missed the two provisional opportunity windows, but am hoping I can submit and if I need to, pay all the money/penalties owed in the third and final window. Will I be able to do so even though the time has passed? And if yes, would there be any other information which I would need to know before I begin with my filing process?

Provisional Tax and Annuity Income

  Written by Nicci   Posted 2 April 2020

At the start of the 2021 tax year I will be earning a monthly income from my living annuity [LA], however as I understand from the provider of the LA, that tax will be deducted by them before I receive the monthly amount. I am registered as a provisional taxpayer and will be earning additional income on top of the LA income. So, I therefore assume that I can continue being a provisional taxpayer and declare the additional income only in the IRP6, or would I have to declare both incomes and then ...

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New company and tax forms

  Written by Nicci   Posted 27 March 2020

I have a new consulting firm and I completed an IRP6 twice, for the two SARS documents, as provisional tax. Note that on the said form there is no provision for any deductions of expenses to set-up my company.
I am not sure what to do next.

Do I need to complete a ITR12 form?. If so, where can I get this form? Currently, it does not show on my SARS e-filing, only the two completed IRP6 form are indicated.

Structuring tax for a side businesses

  Written by Nicci   Posted 13 November 2019

I need some advice regarding how to structure my taxes and what ways I will be able to reduce my tax exposure through deductions, registering as a private Pty vs Sole proprietorship etc... I have a salaried job and am starting up a side business working from home as a web developer. I am also considering to start renting out our flatlet via Airbnb. The total income I am looking at includes (per month): 1) Salary: R70000 2) Airbnb: R3000 (which is a bit hard to estimate right now till we have built a track record, but this is assuming an average occupancy of 13%) 3) Web development: R5000...

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Tax on living annuity

  Written by Nicci   Posted 5 September 2019

What type of a taxpayer am I if I receive a living annuity and I am 42 years old? My monthly living annuity income is just over R10000, I also receive money from my children's investments which ranges between R1000 and R8000.

Provisional Tax on Rental Income

  Written by Nicci   Posted 13 June 2019

My wife and I are South African and we are currently based in East Asia. I work here as a teacher and my wife is not employed. We are married in community of property. So, back at home in Durban, we own two properties, one is residential and the other an office space. We receive rental income of about R6000 and R7500 respectively. Both properties are mortgaged and they are part of a sectional title scheme. Should we register as provisional taxpayers and how would we go about doing this?

Compiling IRP6

  Written by Nicci   Posted 7 March 2019

I am a first time IRP6 Provisional Taxpayer and I am looking to complete and submit my tax return through TaxTim. Would you be able to assist me with my tax return? I would also like to find out whether Provisional Taxpayers would need to submit documents and other expenses later in tax season again? Also, will I have an opportunity to submit other expenses later if I accidentally leave out something or over estimated on my IRP6 P1. And finally, how accurate does my IRP6 need to be considering t...

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