Deductions Posts in Tax Q&A

Is medical aid contributions paid in full by employees tax refundable



I was the principle member of my Bonitas medical aid and was paying R2,076 of the total premium of R5,788. My company paid the difference. Now I resigned and my husband applied to be the principle member through his company but they deducted the full premium. Will he be able to get some of these premiums back when he fills in his tax return at the end of the tax year.

Am I a provisional tax payer if I am fully employed by a foreign Co but permanently reside in SA?



I have taken the test to see if I need to be a provisional taxpayer and it states that I should not. However, I am employed by a London-based organisation and am permanently resident in SA. I get a payslip every month and am on a permanent contract. I dont pay tax in the UK and SARS advised that I should do so as a provisional tax payer. Is this correct?

Claiming travel expenses on a fixed cost basis without an travel allowance



I am self employed and earn commissions and fees. Can I claim a travel expenses on a fixed cost basis even if I don't get an travel allowance?

If I start a small psychology private practice after hours will I need to register for tax?



Hi there, I'm starting a psychology private practice to build experience. I am already employed as a psychologist by a company but I want to add to my experience. Would I need to register for additional tax if I only plan to a couple of patients?

Provisional tax for the year



I didn't submit a provisional tax return in Aug 2015 because I thought I would be below the threshold but I am actually above the threshold for the 2016 tax year. Should I now submit one at 29 feb 2016 and are these numbers based on actual income and expenses or an estimate for the 2016 tax year

Can I claim back tax on a retention bonus?



I was paid a retention bonus and I'm leaving the employer before the retention period. This means I now need to pay back the bonus amount. The company is deducting the bonus from my salary and leave days payout. Can I claim back the tax for the retention bonus? How do I do this?

Fuel Reimbursement



What tax code must be used when a company reimburses fuel only and business km's exceeds 8000km per annum. There is no refunds for wear and tear, repairs and maintenance or insurance. At present the code on the IRP5 is 3702, is this correct?

SARS Payout



I owed SARS money (Statement of Account Period: 2015/07/28 To 2016/01/28), I submitted a dispute, and the following is now showing. SARS Status: Please note that your tax return cannot be processed immediately due to an outstanding Tax Directive. Therefore, manual intervention is required. SARS will advise you as soon as your tax return has been assessed 2016/01/28. When I followed up this is the newest update:
NOTICE OF ASSESSMENT: REDUCED ASSESSMENT 2016/02/15. The amount stated here is a negative amount/ amount with a minus infront. Do they deducted this amount from the amount I owned them, or do they owe me this amount?...

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Tax question on medical aid and correction for SARS



I've just got back and seen the email from SARS. I have a few questions. 1. I made a mistake on the foreign Income, as it was through the business and not my personal account. I was busy doing my business accounts while filling in my personal tax and got confused. 2. My medical aid was paid by my previous employer. They forgot to cancel my medical aid and have asked me to pay them back for that year. I received a tax certificate from my medical aid so do I still qualify to claim tax from that?

Ring fencing of assessed loss



I sold a property during the 2015 year of assessment and made a significant capital gain. I also claimed an assessed loss deduction on the same property for rental losses (finance charges, levies etc) against my other income up to the date the property was sold. SARS ring fenced this loss as my total taxable income falls in the highest tax bracket. However this is only as a result of the significant capital gain I made on the same property I claimed the loss on. Is there a provision in the act t...

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What is the % of tax deductable from a pension payout due to divorce



I am getting divorced and am expecting a lump sum pay out from my ex husband's pension plan, the total amount is R315190. 92( I will be receiving half of it), please advise how much I would be receiving back giving tax deductions.

What are the tax implications of share options?



I have an opportunity to exercise options for an unlisted, US-based company. The purchase value of the options will be around $5400 International holding tax of about $4881. 53 so I need to understand what would be expected in terms of a SARS payment. I plan to hold on to the shares.

Treatment of rental loss and living expenses while studying



From Sep '14 to Oct '15 I temporarily left the employ of my company to study my MBA full time overseas. During this time I rented my primary residence in South Africa out. (a) Am I able to deduct the losses on the rental of my primary property (rent - levies - interest on bond - rates) from my taxable income?

(b) During the time I was away, I had to make use of savings to pay for living expenses (food, necessities, partial travel expenses, but NOT tuition, textbooks, accommodation, vi...

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Supporting Elderly Family Members



I support my elderly mother on a monthly basis with around R2500 p/m - is there a tax efficient or tax deductible manner that this can be done?

How does it work now if you just earn commission but tax and uif does not get deducted?



Hi. I used to work for company that deducted tax from my salary, so I'm a registered. But now I work for a company that does not deduct tax and I only get commission. My question is how do I claim my tax for my medical aid if I don't receive a IRP5?

How does it work now if you just earn commission but tax and uif does not get deducted?

Will SARS pay me a refund based on my retirement annuity if I am declaring no income?



If you are working overseas and are declaring a NIL tax return due to the income being exempt can I still claim a deduction on my retirement annuity?

Car vs car allowance tax



From a tax perspective which is more beneficial to an employee: a car allowance or a company provided vehicle? What would the impact be on either if the employee does not travel sufficient business kilometres on both?

Apply RA tax deductible to provisional tax payment or get a refund after the final tax submission



I am a provisional tax payer and contributing the maximum allowed deductible to an RA (15% of non-retirement funding income). I would like to know whether I can deduct this from the taxable income myself for the provisional tax payment, meaning I pay less to SARS now and do not get a refund later, or whether I should pay tax on the full income without deducting the RA deductible and then get a refund from SARS later on? If I have a choice, I would prefer not overpaying taxes to SARS and aim for ...

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Chairperson tax explained



Please explain the following to me:
1. The taxation of non-executive chairpersons of small companies earning a monthly amount in directors (Chairperson) fees. (They work full time earning a salary from a different Company. )
2. Should the non-executive chairperson be treated as an employee on the payroll of the small Company whilst working for another company or can it be treated through normal finance department transactions?
3. Should the normal statutory deductions like SDL an...

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Cellphone expenditure deduction code



I receive a monthly cellphone allowance. Under what code do I deduct the actual expenditure on my tax return on SARS eFiling? The "other" category has not historically been available to me.

Business travel claims with no travel allowance



How does one go about claiming a vehicle that I use 70% for business and 30% private. I have a detailed log book and do about 18,000km business travel/year but I do not receive a travel allowance.

Can I deduct my Gautrain tickets from my tax



Can I deduct my Gautrain tickets from my tax

Medical rebates when without medical aid scheme.



Provisional tax payer. Over 75. No med aid. What can I claim for medical expenses?

Tax for multiple income



How will I be taxed on my income if I have two jobs with two different companies? My second job will only be part time for - 6 months.

Where in the ITR12 can I claim toll fees paid on business trip if I don't use actual costs.



I have incurred toll fees while on travelling on business trips to clients. My employer does not reimburse this fees I incurred citing that I should cover them from the reimbusive travelling claim that I get. I don't use the actual cost incurred but rather the estimates as per tables. My question is, where in the ITR12 can I book this fees against my income.
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