I always need to pay money to tax at the end of the year. I know it is about R 12,000. Or R1000 pm. Why can I not pay in say R1000 pm Estimate without filling in complicated forms, then fill in complicated forms once a year. I.e. pay in what I think monthly. i.e. accumulate tax credits via payments ahead of the final annual analysis.. i.e. just pay initially when I can afford, and pay in the difference after completing complicated forms at financial year end.
Are you a salaried employee or you earn income by working for yourself?
Jamessays: 25 March 2014 at 16:03
I earn a salary and rent property.The property rents then resulted in me paying in tax. Salary had tax deducted already
I want to pay in monthly say R1000 extra instead of R12,000 once a year.
TaxTimsays: 26 March 2014 at 11:01
Unfortunately the method you have to use is submitting 2 IRP6's each year, these are provisional tax returns which means you would declare all your expected income for the coming year. So for the 2015 tax year which runs from March 2014 to February 2015 you have to submit two returns, one in August and one in February and pay the expected taxes. Then when you submit your final return for 2015 which is only due in January 2016 you will end up not paying any tax.
The best way of avoiding having to come up with the tax money in August and February is to put it aside in the bank account and then when it comes time to submit these returns it has been paid. You can of course pay more into SARS' account than required, but then interest is lost as the money is kept by SARS and not yourself.