Retirement: 10 most popular posts
What does SARS mean by auto-assessment?
Posted 27 July 2020
I saw something in a news article about SARS issuing auto-assessments this year from 1 August. I tried to research but couldn't find much and this is all very new to me. Please can you explain what this is? Are there any new changes which I need to be aware moving forward? I have been filing my own tax return for the past years, but I hear that I might not need to do so this year.
Why am I getting auto-assessed? Where is my tax return?
Posted 23 July 2020
I received an auto-assessment from SARS but I am confused what this means. Why have I been selected by SARS and how did SARS get my data? Can I still submit a tax return if I want to?
Posted 22 July 2020
I have been working overseas and will be doing so for the whole of 2021 tax year making me provisional:
a. What average exchange rate will I use as February 2021 has not yet arrived?
b. When is the first Provisional tax return due and, if necessary payable?
c. Can I deduct my overseas pension and medical from my gross income or is this only if I have a pension/RA and medical in South Africa?
d. I know that R1. 25 mil is exempt so how would I work out the tax on that as I know...Read more →
Will I get a tax refund if I accept the SARS auto-assessment?
Posted 22 July 2020
My auto-assessment shows that I am due a tax refund. Can this be correct? Do you think I will receive the refund if I accept it, or should I rather reject it and file a tax return?
SARS sent me an SMS about auto-assessment? Is this legit?
Posted 20 July 2020
I received an SMS from SARS which mentioned something about an auto-assessment. I have not heard of this before. I don't trust anyone these days, and because of that I just want to ensure that this is legit - do you think this is a scam?
Tax deductions exceeds the tax paid
Posted 28 May 2020
What happens if my Allowable Tax Deductions exceeds the tax paid in the same year. Logically I should only be able to claim back the actual tax paid? It will be Additional allowable Medical claims which will not be covered by the medical aid. These amounts plus smaller deductions will push the claims to over and above the tax payable amount.
Contract worker and Tax
Posted 22 May 2020
I was retrenched at the end of 2017. My last Tax Return was done in the year 2018. Since April 2019 I have been receiving income for work done on a contract basis and the company indicated that I need to see to my own tax affairs. How do I go about filing my tax return for 2020? Your assistance is highly appreciated.
Retirement lump sum calculator
Posted 12 May 2020
The TaxTim lump sum tax calculator provides for BEFORE and AFTER retirement, retrenchment or death - with a marked difference between the BEFORE and AFTER options. I would just like to make sure that this is correct, as I am being told by my fund that withdrawing retirement funds (post retrenchment - but before retirement age) does not have the same rate. I have been forced to withdraw from my pension fund because of retrenchment due to "redundancy because of a general reduction in personnel" (a cost to company reduction)...Read more →
IRP5s and companies paying RA for employees
Posted 7 May 2020
If a company is paying into a Retirement Annuity (RA) for employees when preparing an IRP5, using source code 3828 as income, would we then need to use source code 4006 for the same amount? In other words, source code 3828 for the amount paid by company on behalf of employee (this amount will be added to the income total) and code 4475 for the same amount. If an employee has not contributed anything code 4006 will be 0, but will still have to appear on the IRP5?
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 →
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 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.
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?
Two incomes and tax calculations
Posted 20 May 2019
I am 51 years old and I receive a monthly taxable salary and a monthly pension. How do I calculate my tax on both incomes?
Difference between provident fund and retirement annuity?
Posted 18 July 2017
There is no code 4006 on my IRP5, but I pay into a provident fund via my employer. There is an amount with code 4003/4473 (the same amount). Do I need to enter this amount anywhere?
This query relates to question 6806 "Do you have a %nextpass% Retirement Annuity Fund that you want to enter?" in the Retirement Annuity section.
Posted 18 July 2017
Kindly advice me on tax deductions regarding RAF maximum amount that ca be
If a person is on Salary range of 280 000 to 300 000 p.a.
The employer and contribute each 7.5 % of the basic salary p.a to pension
The employee currently contribute R405 per month towards retirement
annuity fund per month
The question is how much can be deducted or get refunded from SARS annual
or how much can contributed to RAF to ensure that he/ she is not paying too...Read more →
Posted 14 July 2017
I have not yet received a certificate for my personal Retirement Annuity?
This query relates to question 6803 "Please enter the name of the Fund. You will find this on the Tax Certificate received from your fund. " in the Retirement section.
Posted 13 July 2017
I am busy correcting my tax returns but have a query on financial instruments listed. Does my retirement annuity(s) value also need to be submitted as part of this value at the value it was on the 28th of February? The same questions goes for my TFSA which consists of stocks?
I received two assessments from SARS
Posted 11 July 2017
I submitted my tax return and received a refund outcome, I later received another assessment with a different refund amount, can you explain this to me please?
Is RA and pension the same?
Posted 11 July 2017
I'm not sure how the deductions for my pension works as my employer has been deducting pension from my salary under code 4001. Do I still enter any amounts under annuity contributions?
Medical Aid Expenses for previous tax years
Posted 6 July 2017
I was retrenched April 2014 but continued paying for my medical aid in my
personal capacity. I only claimed for out of pocket medical expenses and
not what I paid in my private capacity. I'm not sure If I could claim for
that and if I can now with 2017 submission claim for 2014 / 2015 medical
When you pay an RA directly
Posted 4 July 2017
I personally paid money into a retirement annuity fund, and not via my employer - where do put this in my tax return please?
Employed on Contract Basis (PAYE)
Posted 1 June 2017
I've gone from working for an employer to freelancing and now I'm working on
a contract basis. I'm not taxed on my contract income. All I do is send an invoice and they pay me and deduct nothing off that. I'd like to still pay SARS the PAYE, is that possible? (I have my own retirement fund).
Severance benefits and estate duty
Posted 25 May 2017
Do severance benefits received from an employer at death, form part of property or deemed property in your estate for Estate Duty purposes?
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