Deductions Posts in Tax Q&A

Do students in a learnership pay tax?



I'm in a learnership. I get paid R3,120 plus R1,500 accommodation. The total is R4,620 per month. Do I pay tax?

Provident fund taxable fringe benefit



When I captured the details of the monthly salary expense it calculated the following:
Gross salary: R16 772. 83
Included in gross salary is R1 500 provident fund contribution by the employer. Net salary calculated was R13 500. The provident fund contribution is a taxable fringe benefit from 1 March 2016, however, where was it taxed?

How to file a nil tax return for a business?



How does an individual who hasn't worked for anyone and has no source of income - but yet has a registered business and is not currently trading - declare their zero tax return to SARS?

SME Tax



Do you also do small business tax? How much would cost for a small business tax? can I hire my unemployed family and friends and deduct their salaries from my revenues? And what would constitute proof of employment of these friends to SARS?

Never claim tax refund since 2006 untill now can I claim for all those years



I have started working in 2006 but I never claim tax refund is possible for me to claim for all those years?

Am I liable for paying tax on foreign monetary gift?



I have been receiving a monthly monetary gift from my ex boyfriend who lives and works in the USA. He is not a South African tax payer and I am. This money is for my living expenses since I resigned my job in SA on his insistence (he had proposed) however our relationship didn't work out and I am in SA without a job or an income.

What are the SARS obligations and benefits for a taxpayer aged 74 years for the 2015/2016 tax year?



With regards to your post of 23 July 2012, about retirees aged 65 years and older: have there been any changes since then in SARS requirements for tax returns for the 2015/2016 tax year, or not? What benefits can such a taxpayer expect? What is the taxable threshold for a taxpayer 74 years of age (turning 75 in June 2016)? Where do donations fit into all of this?
1. Main source for living expenses is interest income. 2. Medical aid premium is paid by the retiree in full, in addition to medical expenses which go beyond medical aid benefits. ...

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How to treat RA contributions which are not allowed as a deduction



Can the excess amount of retirement contributions which are carried forward to tax years be offset against tax payable on lump sum pension payments?

UAE employment income received 2009 - 2015



I was employed by a UAE company from March 2008 to Sept 2015. I did not emigrate to UAE and always had the intention of tax returning to SA. I was never more than 30 days in total in SA when visiting family before I left for UAE again to continue employment. Will my employment income earned for this period be taxable in SA? Where do I include this on my tax returns when completing them for SARS?

If I am a provisional tax payer, do I still pay PAYE?



If I am a provisional tax payer, do I still pay PAYE?

Medical Aid query



I am the dependent on my boyfriends medical aid. Our medical savings finished early and I paid via eft for all of my xrays, doctors, medicines etc, can I claim that back on tax return, or does it have to be done on his. I have proof of all the payments etc, the accounts however were in his name, but it showed that it was for me.

Are bond initiation fees, legal fees and valuation fees deductible for tax?



Hi, I have registered as a provisional tax payer and did my tax return in August. My rental expenses (levies, interest and taxes) are greater than my rental income I earn. Do I still need to file the provisional tax payer tax return now and see if any payments are due?

I have paid for your services for my personal income tax, but haven't received any of my tax information yet (for investments, medical aid etc). Must I just wait until those all come later in the year and send them thro...

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Is my business liable for PAYE as soon as I register?



I registered my SME for PAYE in December 2015. When do I become eligible to start paying PAYE? I'm the only employee and my salary is tax deductible?

What is the tax of total earnings R52499.07?



My contract was terminated and I was paid the notice pay, leave pay,leave enhancement,attendance bonus. Total earnings R52499. 07 my tax is R16339. 14. Is my tax correct. Pls help!

Question on secondary tax rebate



If you turn 65 before end of February 2017 are you considered to be 65 or 64 for the current tax year.

Medical Aid and Pension contributions on IRP5



I struggle to understand how the (The total deduction - code 4497 on IRP5) is calculated. I have a medical aid fund, pension fund and retirement annuity. My employer (the church) is contributing to all three of these funds. This question is for the 2016/2017 tax year with the new T-day implications. In the income section, the following IRP5 codes are used. (This I understand)
3810 - Medical aid benefit
3817 - Pension fund fringe benefit
3828 - RA fringe benefit

In the deductions/contribution section. These are the only items Payroll shows. ...

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Independent consultant and expense claims



I am an independent contractor and would like to find out how to calculate my salary due to me taking expense claims into account. Total salary = hours worked x Hourly rate
Expense claims = cell phone, internet and travel claims

To calculate tax amount you take your total salary less expense claims. Then when calculating amount payable, do you

A: (Total salary amount less expense claims) less taxable amount plus expense claims = amount due to you

OR
...

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Do I pay tax in SA as a non-resident working in SA for a US university?



I am a US citizen living here in South Africa for about two years because of my spouse's work. The university I work for has graciously allowed me to continue working remotely for them while I am here. I work with computers on the internet. Recently, someone from my work has insisted that I needed to file for income tax in South Africa. I disagree, believing that my income source is not South African and that I am a non-resident for tax purposes. Is there some specific evidence I can use to back...

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Penalties deducted from pay out?



I looked on the SARS eFiling and it stated that I should pay them a big amount of money (I assumed it was for late tax returns). A week later they paid out a small amount, after a consultant said we do not owe anything on their system. Am I correct in assuming that they deducted the penalties from the tax returns and paid out what was left? Or should I still be worried about that letter?

Can residual bond interest from one property be offset against rental income from another property?



I have two properties and I pay bond interest on both.

With regards to deducting bond interest from rental income, can residual bond interest from property A be deducted from rental income from another property for tax purposes?

MEDICAL TAX REBATE REFUND



IF YOUR PAYE CONTRIBUTIONS EXCEED THE TAX PAYABLE WHICH MEANS YOU ARE DUE A REFUND DOES THE ANNUAL TAX CREDIT R257 PER MONTH TIMES 2(taxpayer and spouse) times 12 ( R6168) INCREASE YOUR REFUND FROM SARS?

How to calculate the IRP6 and ITR14?



My company was registered with CIPC last year in March 2015 and when I went to SARS to submit my ITR14 they say I must register online but before I submit the ITR14 I must firstly submit the IRP6. I would like to know firstly as to how do I calculate my IRP6 and when do I start to calculate since as I said my company was registered last year?

My PAYE deduction is way to high - how do I claim?



I have calculated my yearly taxable earnings for the 2015-2016 tax year, and the PAYE deducted each month was significantly higher than needed as I was unemployed for the majority of the year, bar a few months. How do I go about getting this money back? Is the company liable to pay it back to me or must I claim it from SARS (the last month I worked was November 2015, and I started in August 2015).

Should there be a PAYE deduction from my sole proprietor invoice?



I operate a sole proprietor providing services to various companies on an "in need" basis on short and medium tem basis. I operate at my client place of business however the latest client has started deducting PAYE from my invoice at a rate of 33. 3% although I am not on a fixed contract and will not derive more than 80% of my annual income from them. Are they entitled to do this and how do I reconcile these deductions as a provisional tax payer?

Is it the building size or stand size used for home office calculation?



I have a home office and I want to know in terms of the calculation for the percentage of the home being for the office is it the entire stand size of the property or just the building size?
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