Foreign Employment and Tax Implications
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
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?
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
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
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
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 ...Read more →
Company car fringe benefit.
Posted 31 March 2020
I had a fringe benefit of R6799. 72 company car 3. 25% FB. Company cancelled the Fringe Benefit and I bought the car in August. Up to today, company still have R6799. 72 on my payslip as fringe benefit. How will this influence my tax return? How much tax am I paying monthly on the fringe benefit that should have been cancelled in August already. Please note that we have advised payroll department regarding this matter.
New company and tax forms
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.
Declaring the cost of building a rental property
Posted 27 March 2020
I had rental income in the 2019 tax year, I converted part of my house into a 1 bedroom apartment as well as converting my old garage into another, so I currently have 2 flats now on the property. The apartments represent around 34% of the squares of the buildings on the property. Should I then declare 30% of the costs of the property (I.e.: Interest, Rates & Taxes etc as the costs) as the costs?
Also, where do I declare the cost I had incurred in building the units? (Does it come und...Read more →
Structuring tax for a side businesses
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...Read more →
Married in Community of Property
Posted 30 October 2019
My wife and I got married last year on the 26th of March 2018. We got married in community of property, so when it comes to tax what I would like to understand is whether we will both need to do our tax differently this year and also, I would like to find out what would the implications on our tax returns be like?
Foreign income with online forex trading
Posted 24 October 2019
How one would declare Income/Loss that is derived from online forex trading. The trading account is in USD so I assume foreign income.
1. Where would one declare this income/loss with TaxTim/eFiling tax return under foreign income?
2. Is it necessary to declare if only a loss was made?
3. Can withdrawal fees/currency exchange and bank fees be deducted from overall profit.
4. What documentation would SARS require? The only documentation that can be acquired from the trading platform is trading history showing profit/loss but no tax certificates. ...Read more →
Tax on money held in offshore account?
Posted 15 October 2019
I have an offshore transactional bank account into which I transferred cash into. To clarify, the currency is in Australian Dollars. Also, I do not earn any income on this account nor do I earn any income from abroad. With that said, the interest rate for this account is set at zero on the deposits made. What I would like to know is, would I in this case need to pay tax on any currency movements while the cash is in the account and if that is the case, how would this work if I make payments from...Read more →
Independent Contractor versus Personal Service Company
Posted 2 October 2019
I'd like to get some clarity on whether there is a difference between an Independent Contractor and a Personal Service Company?
Tax on shares
Posted 19 September 2019
I received a once-off payment for shares in November 2018. I then opted to pay tax on the shares before the payments was made to me. Therefore the tax was already deducted before any monies were paid to me. I am now uncertain how to enter this in my 2019 tax return. Can you please advise %u2013 do I need to submit this income in my 2019 tax return and if I must, what figures must I submit in terms of the share payment made to me in this tax year?
Old Tax Returns
Posted 13 September 2019
SARS owes me money from a tax return which I recently submitted with the help of TaxTim. They have come back to say that I need to file my old tax returns from the year 2016 and 2017, but I was not working during those two years and I also never filed any tax returns during those two years. I am not so sure about what should I do now regarding this matter?
Posted 11 September 2019
My employer had to fix the tax period on my IRP5 and it has now been resubmitted to SARS. I would like to know if I am able to get TaxTim to reload this new IRP5 document for me? Also, please note that there are some amount changes as well which were made and this needs to reflect before I can agree to submit the final details. Is there perhaps a process whereby TaxTim can import the IRP5 before commencing to the submission state?
Tax on living annuity
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.
Posted 25 July 2019
I am confused and I need some clarity regarding money I am contributing into a pension fund. I am making monthly contributions into someone else%u2019s pension fund. I was wondering whether I can deduct my contributions from my income for tax purposes. Can I claim these contributions back? I am not certain whether this is doable and would appreciate your help.
Provisional Tax on Rental Income
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?
Submitting a tax return and foreign income
Posted 5 June 2019
I have been living abroad for a while, since February 2018 to be exact. I filed my tax return for the 2017/2018 financial year, as it reflected my income for the previous year, during which I was employed in South Africa. I would like to maintain an unbroken record with SARS, but I'm not sure how to file for income earned abroad. My current income is well below the R1 million limit impostor in South Africans working abroad. I will be tax returning to SA in March 2019. So, I would like to know wh...Read more →
Earnings of a teacher and tax
Posted 5 June 2019
I would like to find out if I should submit a tax return as a teacher that earns R300 000 per annum. Would this be required of me?
Calculating leave days payment
Posted 29 May 2019
How do we calculate leave days for payment purposes? For example, if someone who has a monthly basic salary of R17933.00 and has carryover leave days of 20. We want to pay out the carryover leave days. The employee works 40hours per week. We also have employees who are working 37.5 hours per week not 40 hours. So, if one worked 37.50 hours per week, with the same basic of R17933.00 and had 20 leave days to be paid, how would you calculate?
Tax on foreign employment
Posted 28 May 2019
I was living in Dubai from March 2014 up until December 2016, I however did not earn any income while living there. I then moved to Namibia, where I am currently employed and getting an income, I am a registered taxpayer in Namibia. Also, I am a registered taxpayer in South Africa because I worked there before moving to Dubai. I've received no income from South Africa since moving out of the country. I'd like to find out if I still need to submit a tax return to SARS?
CGT for Companies
Posted 26 May 2019
Is it correct that for private individuals Capital Gains Tax (CGT) is levied on net gain and of that, 40% is taken into account and that amount is added to individual's taxable income for that specific tax year. How does it work for companies or Trusts, is 100% of net CGT taken into account or what?
Posted 21 May 2019
Where does my tax money go to?
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