Deductions Posts in Tax Q&A

Supporting documents for capital gains tax deduction



I have sold my primary residence which was bought in 2002 and there will be a profit of more than
R2 000 000 subjected to Capital Gains Tax. There were a few small improvements (not maintenance) done over the years which I believe can be included in the base cost for example Paving, Blinds, Towel and curtain rails, cornices and garden landscaping. However, I do not have documentary proof for some of the older improvements anymore. (Improvements still form part of property)
My question...

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Turn over tax compared to small business tax



If my company was registered for turnover tax and it makes R500 001. I would be taxed R1650 2% of taxable turnover above 500 000. Am I correct in saying as a small business the company tax would be 20 300 21% of taxable income above 365 000? if not registered for turnover tax. Would the tax I pay be on the profit, if I made for example R 80 000 for the year? would it be 7% as per below?

Taxable Income (R) Rate of Tax (R)
0 - 75 000 0% of taxable income...

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No IRP5 due to retrenchment



We got retrenched in Sept 2015 after not being paid two months salaries. Employer claimed liquidation, but no details up to now. We do not have IRP5 because the sub-contracted audit/payroll company has not been paid for such service, and they are refusing to provide us with IRP5 due to non-payment by the employer that retrenched us. How do we go about solving this problem? We need IRP5 for the 2015/2016 tax season submission.

Medical deduction



I paid for the medical fees when my girlfriend gave birth to our son, I'd like to know if a can claim it back form SARS. She doesnt belong to a medical aid

PAYE on a salary below the tax treshold



I am currently working at an NPO and earning R 6000 per month. Currently the organisation is taxing me R300 per month (although this often fluctuates randomly). There are no further deductions, apart from UIF. As far as I am concerned, and according to all research I have done, I am not meant to even be paying tax on this amount. Could you please clarify if this is correct, and if not, who can I approach with regards to this money that seems to be going missing?
Thank you in advance.

Capital gains tax on primary resindence



Hi Tim, My wife and I bought a house which we own 50/50. We are currently renting out that house as we want to renovate it at some point in the future and then move into it. We currently live in another rented house (ie are renting it from someone else). Would the primary residence be the residence we currently reside in (ie are renting) and the secondary residence be the house we own but are renting out? Then on the rental income, as well the associated expenses of the house we own, do we just ...

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Medical expenses on chronic medication



Are payments by Medical Aid Funds for medical expenses incurred ( eg. Chronic medication) on behalf of a member treated as qualified medical expenses

Tax on uk based rental income



I bought a flat in the UK whilst living there. I have since moved back to South Africa permanently but still own the flat and earn rental income from the flat. Where should I pay tax on that income, SA or the UK

PAYE deduction from Independent Contractor



I am a bookkeeper new to the film production industry and need some clarity on freelance artists. My understanding is that unless they have a registered company the deduction is 25% from their earnings without fail. If they claim they have a company then I am to ask for the company registration certificate for audit purposes and not deduct PAYE

Tax liability on salary earned



I get a salary of R8000 per month how much tax should be deducted

Tax liability for an Independent Contractor



My son started as a independent contractor March 2015 and has not paid tax. He earned R10k for 2 months and R5k for the rest of the year. He got paid a lump sum of R80k when the job was done. He is going to SARS but what tax or penalties can he expect

Will SARS refund one amount for 2009 to 2016?



Hi Tim, I have an income tax statement but the period is from 2009 to 2016 and I have already received one payment do I still get other payments from SARS or is it only one payment?

Do we calculate vat on legal fees from Road Accident Fund proceeds?



I work for a legal firm that deals with Road Accident Fund (RAF) on behalf of our clients. We deduct an amount of legal fees after the matter is settled - can we use the amount received from RAF to calculate our input vat?

Do I have to record all kilometers travelled?



Does my travel logbook have to include private kilometres travelled? Do I need to write down KM's (business and private) every time I get in the car for the rest of my working days, while claiming?

What is an effective logbook method for tax?



I would like to know what is the most effective way to log your work travels in order to be able to claim it for tax?
Is it really necessary to write down every destination I go to and who was seen, etc? Or do they need to have an odometer reading every day and night (opening and closing?) Or as some say, can it just be based on the reading from 1st March to 28 Feb?

I have downloaded an app which acts as a log book (feulio), would that be sufficient?

PAYE due on my salary



I'd just like to know if the correct amount of tax is being deducted from my salary monthly. My gross salary is R45900
My employer pays my full medical aid contribution of R7254
I contribute from my salary towards a provident fund, an amount of R2754

Could you please advise how much of tax I should be paying monthly?

Thank you

May a sole proprietor have travel allowance and must retirement or providend fund be deducted monthl



I would like to know if a sole proprietor may allocate a travel allowance to himself?

In regards to a retirement or provident fund may I do payment once a year up to 27. 5% of my earnings or must I do it monthly?

Your help will be greatly appreciated

WS

Full time salaried employee or Independent Contractor?



I work part time ad hoc shifts as a doctor at a private hospital, where I am paid an hourly rate and my hours of work are between 0 and 30 a week. In terms of tax deductions (specifically MPS - medical malpractice insurance, travel expenses, training course fees); would my work be classified "full time salaried work"?

I understand this is important in terms of which items one can claim back.

provisional tax on a Pty and small company



I have just opened a PTY. I do not know what my turnover will be. It might be between R 500 - R 400 000 per annum. 1) Do I need to register for provisional tax and when?
2) How do I calculate provisional tax
3) would I fall under SBC or company for tax purposes?
4) what is directors tax and do I need to pay it?

the company is very simple... I have one supplier. I have no extra expenses. I have no assets. I have no employees and I am the only director. Thank you

TaxRefund



I wanted to knw if a contract worker is allowed to claim a tax return?or isn't claimed by the people who's bt working

Calculation of fringe benefit tax on use of a company car. / deduction claim



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?

How much will my PAYE be and am I due for a tax refund?



I earn 12000 a month which calculates to 124 000 per year. What is my total taxes and what is the amount of my tax return if I am eligible for a tax return pay out and can my employer file my tax tax returns on my behalf

Tax paying Freelance Artist / Independent Contractor



I am a freelance artist, I want to work fulltime for myself, but can't be certain how much I will make or whether I would make any money at all. I am married in community of property. My husband is lucky enough to have an employer that takes care of his submission every year. I need to ask whether I should add my income to his submission or whether I should have my own tax number. I tried to enlighten myself by reading the Tax website,, but it's all greek to me, I can't seem to figure it out. I ...

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I would like to know how can I get my tax refund



I would like to know if it is possible that I can be able to get a tax refund after retrenchment.

Tax refund on retail slips



How much tax refund would I get if I submit retail slips amounting to R10 000?
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