4 July 2016 at 12:54
I received a final salary payment in March 2016 (where PAYE etc was deducted) and the same month began earning income as an independent contractor from a variety of clients. When I submit my first provisional tax return in 2016, do I include the March 2016 Salary payment I received, or do I submit a separate income tax return in 2017 for that income?
This entry was posted in Tax Q&A and tagged Salary / IRP5, Independent Contractor, Provisional Tax, Deductions, Audit / Verification, SARS & eFiling. Bookmark the permalink.
4 July 2016 at 15:39
Your first provisional tax payment and tax return (IRP6) will only be due 31 August 2016.
Please read our blog on What is Provisional Tax? How and when?
When you submit your 1st provisional tax return, you will need to estimate your taxable income for the full year. This will include your March salary income and contractor income. The SARS eFiling system will then halve the estimated annual taxable income and work out the tax payable for the first 6 months of 2016/2017. You will need to enter the PAYE paid for the period and this will be deducted off your tax bill for your 1st provisional payment.
You will receive an IRP5 from your employer for the 2017 tax year which will reflect your March salary and tax payment and this information will be pulled into your 2017 Tax Return.
Register for TaxTim and let us assist you to complete and submit your Provisional tax returns and tax returns to SARS.