I resigned from my corporate job in 2009 and became a full-time entertainer. Working when the bookings come in, I earn an irregular income. How do I go about completing my taxes as a self emplyed individual?
If you are a self employed individual and not earning income from one particular source then the first thing you need to do is register as a provisional taxpayer. If you already have an eFiling account then you can do so online, or you can complete a form and send it through to SARS. If you look at the TaxTim website, you can find the form there.
When you are registered as a provisional taxpayer you would need to complete a form called an IRP6 which estimates your income and therefore tax paid every six months. This is completed and submitted in August and the following January. You will also need to complete a final ITR12 which is the year end tax return.
As a self employed taxpayer you should keep a spreadsheet on a monthly basis of all your income and any business related expenses so you are always on top of your your tax affairs. You can then use this to calculate your profit and basically how much tax you will pay. When filling out the IRP6's you would basically use this profit figure. On your final return you would complete the "Local Income" section.
Tim guides you through this whole process as well and helps you complete your ITR12 even if you are self employed.
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