Salary / IRP5 Posts in Tax Q&A


Structuring tax for a side businesses



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...

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Independent Contractor versus Personal Service Company



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



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?

Corrected IRP5



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?

Earnings of a teacher and tax



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



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 allocation



Where does my tax money go to?

Two incomes and tax calculations



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?

Backpay and bonus taxed in same way?



Can a bonus and an arbitration award backpay be added on one source code?

The employer added the arbitration award backpay for 2014 to 2017 august under one source code of bonus. What is the impact are the two taxed in the same way?

Leave days and tax




Business travel from home office



I work for a multi-national company and I am home based. I would like to find out, when I travel into the office for meetings, can I claim that mileage as business travel? Also, just for interest sake, would it be different if I was a salary earner and I did receive a travel allowance?

Tax when selling the shares



I previously received an opportunity to invest in shares through my company. I invested a portion of my income every month and every six months shares were purchased on my behalf at a 14% discount. The shares are US based and tax was deducted locally off my payslip. I would now like to sell off my shares, but I don't fully understand how I'd be liable for tax. We were able to sell them as soon as we had them. They were part of an ESPP (Employee Stock Purchase Plan) and were purchased by deduction from salary and taxed (nothing given out-right). On the platform, they do seem to be classified as short/long term but I think this is geared up for US rules of capital gains....

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Relocation expenses




I still have source code 3697 and 3698 on my IRP5 for 2018



Question: Where can I input source code 3697 or 3698 from my IRP5? I do not see a place for this anywhere?

Answer: Those codes are no longer applicable for 2018 IRP5s, if you have 3697 and 3698, add them together and include that total amount for source code 3699.

Everything you need to know about Pay Periods on your IRP5



What are Pay Periods?

Your IRP5 has two fields on it that relate to Pay Periods:

  1. Periods in year of assessment
  2. No. of periods worked
  3. Period employed from
  4. Period employed to

A Pay Period describes an amount of time within a year that you were employed by your employer.

This can be an amount in:

  • DAYS - maximum 365, or 365.0000
  • WEEKS -  maximum 52, or 52.000 (can show a partial number, e.g...


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Bitcoin and Tax



Are the earnings from Bitcoin taxable?

No time to go to SARS



I cannot get the time to go to SARS, is there a service that you
offer to get my SARS eFilling account active and then also submitting my IRP5s?

SARS does not want to pay me the money it owes me.



Good day, SARS owes me money, had to go through the ombudsman to prove this, successfully did so however, SARS now requires that I prove that I actually did pay an amount I owed 2 years back before they refund me. My question is: is that even legally allowed/required of me or is it foul play from SARS? Thank you for your assistance

Difference between provident fund and retirement annuity?



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.

RAF



Kindly advice me on tax deductions regarding RAF maximum amount that ca be
deducted.

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...

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Old 2009/2010 efiling returns




SARS say they upgraded their system and have now seen i did not file a tax return in 2009,2010 and have fined me for each year. Both years i was under the threshold but they are insisting i file these returns. I do not have the IRP5 anymore and the company no longer exists. They advised that I open the return on efiling and can then submit as it should have all the info, I have done this but there is no earning/medical aid information etc.
How do i resolve this now as both returns are now sitting open on efiling and i am getting fined R250 per month now that i do not resubmit....

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Penalty for non-submission



I received a notification from SARS indicating that I have admin penalties
indicating that ITS outstanding tax returns for 2008, 2009 and 2010.
What does this mean and can you help rectify?

Submit a return with medical aid claims on



I wanted to enquire approximately how much it would cost for me to do my Tax Returns?
Just an estimation.
It would be just for me. Straight forward Gross Salary plus medical aid. No other claims such as commission, mileage, petrol etc.

2 IRP5s and commission



Before paying the fee I just want to make sure you'll be able to help me. From March to July. I earned a normal salary but from August I earn a basic and commission. As I sales rep I'm able to write off wear and tear on my
vehicle but obviously only from August. Same goes for my laptop etc. will your system be able to take this into account?

Is RA and pension the same?



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?
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