Provisional Tax Posts in Tax Q&A

Risk of underestimation of provisional tax in August?



If you underestimate your provisional tax in the August submission, but then are better able to more accurately estimate it in February, are you penalised for the under estimation in August? Furthermore, are there possibly any thresholds for underestimation in August which gives rise to a penalty, even if you accurately submit in February. Or is it is you're able to estimate accurately in February, that there are no penalties induced despite the underestimation in August?

2015 Provisional Tax figures please?



1. Tax tables for 20152. Tax Rebates - Primary & Secondary3. Tax Thresholds for over 654. Exempt portion on investment interest - over 65

Do provisional tax payers that have PAYE deducted and paid over monthly have to submit 1/2 year retu



If I am a provisional tax payer and my company pays my PAYE over to SARS on a monthly basis, do I have to fill in the half return. Can I not just state that PAYE is deducted and paid over monthly. I earn dividends and some interest over and above my monthly salary.

At what stage must a SP register for tax?



I run as a sole-proprietor a small beauty business. I have been a student and then on completion of studies decided to work for myself. I am alone in my business and have built up the earning capacity slowly, due to my expenses of buying equipment and upgrading my home salon as I go along. I don't pull a salary for myself of over R8000.00 per month and some months only draw about R2500.00I am not registered for TAX personally as I looked at the tax tables and did not seem to earn enough to...

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Query on how to pay provisional tax and when to submit normal tax return?



This is my first time submitting for provisional tax as I have additional income this year in addition to the salary I earn. Please can you advise how I go about applying for the IRP6 and when do I complete my normal tax return in addition to the provisional tax?

What is the tax effect of me turning 65 years of age?



for 2015 tax year ending Feb 2015 , I will be 65 in Dec must I treat my provisional tax return for the mentioned period as if I are already 65 by using rebates and other tax credits for over 65?

Do I submit an IPR6 form with my optional 3rd payment for provisional tax?



On your provisional tax page, you say "two (or optionally three) payments are made during the tax year at the end of August and end of February, with an IRP6 required for each one."

There are IRP6 forms in eFiling for 2014-01 and 2014-02, but nothing for 2014-03. Do I need to submit an IRP6 form with my third payment (and, if so, where can I find that form in e-filing?), or do I just pay the additional money with no form?

Can I claim deductions for items bought in Feb to start with sole proprietor business in March



I started a sole proprietor hairdressing business on 01 March, I started to purchase stock and had some upgrades done to a rental property during Feb. Can I claim a deduction for the chairs and sinks, I purchased as well as the repairs to the deck. I am renting a small property because my home is not large enough for the business

Tax status before submission?



Can I have a provisional calculation on tax before I submit on Efiling?

Tax responsibilities following resignation?



I would like to find out how my SARS tax returns will work for the 2015 tax year.

I resigned from my employer of 10 years at the end of January 2014 to start my own business from home.

What are the implications and my responsibilities to SARS from this point on? I am technically unemployed with low annual income currently.

My business is home-based. I have no other means of income. My husband is currently employed full time. We are married in community of proper...

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Does community of property includes sole proprietor?



Does a sole proprietorship form part of joint estate?

Selected yes for provisional taxpayer in error?



I selected yes for provisional tax while registering for
eFiling. How do I amend this? And will it make a difference?
When I submit my tax return?

As a provisional taxpayer being self employed, may I claim for office space in my home and travel?



As a provisional tax payer being self employed, may I claim for office space in my home and travel? If so, what is the fair amount?

Recently self-employed



I recently (1 May 2014) opened my own business (A Pty Ltd) to operate from as a consultant. Am I correct in assuming that I am now a provisional tax payer? If so, do I need to register as such (I am a registered income tax payer already from previous fixed employment)? Do I only need to submit an income tax return after February 2015 and make a provisional tax payment in October?

What % of total income amounts do we show in each IRP6 to ensure the rebates can be claimed twice



Good day

Thanks for your tax articles. I have one basic question, please.

In the case of provisional tax paid for persons married in community or property, what income amounts does one enter into each IRP6 to ensure that one can claim the rebate twice. I have heard I should enter 100% of our total income in my IRP6 and 50% of that same income in my wife's IRP6?

IRP5 from a company I don't work for anymore



I have received an IRP5 form from an agency that I previously worked for from another company in Cape Town. I have no clue what I am suppose to do with this IRP5 form because I don't work for the company anymore.

Can you please advise me or assist me on this matter? Thank you

How do I close my tax account?



I am a provisional taxpayer. I used to have my own business. I am no longer employed and I am leaving the country in December. I am wanting to know what the procedure is to follow in closing my tax account. Do I need to get a tax clearance?

ITR12 option not available



My SARS eFile does not have ITR12 option under my "Returns Issued"...it only has "Provisional Tax (IRP6)". What should I do?

Earning a salary and having a sole prop on the side, how does the tax work?



I am employed and earn a regular salary from my employer. BUT I also run a small business (just me as Sole Prop) on the side. (I help people with Web development and design work)How does tax work in my case? Do I need to put away a percentage of each transanction and pay it manually each year or how does it work? I don't want to get into any trouble with the tax man :-)

Taxation on profit for sole proprietor?



NOTES: 1. Taxation R12 523 x18% = R2254.14 less rebate under 65 years R12 080 = R 0
am I correct with the above calculation or will I need to still pay the tax of R2254?

Rent Income



If your rent income and salary income amounts to less than the required amount for taxpayers to submit income tax does that mean I do not need to pay provisional tax or does any additional income count as 'taxable'?

Transition from adviser to TaxTim?



I am a provisional tax payer and have been using a tax adviser. My affairs are simply - I earn a salary and receive rental from 2 properties.

Are there any issues to consider with regards to the provisional tax I have paid?

Forms required to complete for provitional tax on eFiling as sole proprietor, how to do EFT Payment?



I am registered with SARS on E Filing as a sole proprietor, what forms do I complete and how do I do EFT payments

When should I register as provisional taxpayer from?



I'm starting contract work on 1 July 2014 (payable by client in first week of August), in addition to salaried work. If I register as provisional taxpayer in July or August, would I still have to submit my first return this August, or should I wait until after Aug to actually register? I'm concerned that projected earnings to Feb15 will inflate what I'd need to pay in August, considering I wouldn't have earned it yet to keep the extra tax aside?

Tax enquiry regarding deductions and insurance payouts?



A client has broken his fingers and cannot perform his work commitments as a personal trainer and actor. He is trading as a sole proprietor. First question is, will he be taxed on his payout for impaired benefits from his insurance company? Secondly, what supporting documents need to be submitted to the insurance company for this payout? Thirdly, what expenses can be deducted from a client who is either a model/actor that is paid via an agent?
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