12 March 2020 at 18:29
I have a new consulting firm and I completed an IRP6 twice, for the two SARS documents, as provisional tax. Note that on the said form there is no provision for any deductions of expenses to set-up my company.
I am not sure what to do next.
Do I need to complete a ITR12 form?. If so, where can I get this form? Currently, it does not show on my SARS e-filing, only the two completed IRP6 form are indicated.
This entry was posted in Tax Q&A and tagged Provisional Tax, Deductions, Audit / Verification, SARS & eFiling, PAYE & UIF. Bookmark the permalink.
13 March 2020 at 7:03
Provisional tax return is a very basic tax return on which you declare your taxable income (which include the calculations of the deductions you may have). Provisional is a separate tax return from your income tax but it is not a separate tax. Provisional tax is a method of paying the income tax liability in advance, to ensure that you have a large payment due to SARS on your income tax assessment.
Is your new consulting firm a registered company or are you trading in your personal capacity (Sole Proprietor)?
If you are trading in a registered company, then you should submit the required provisional tax returns (IRP6), an income tax return for the company (ITR14) and in you will also need to submit the required tax returns in your personal capacity which include provisional tax returns, if applicable, & your annual tax return.
If you are trading as a sole proprietor, then you should submit the required provisional tax returns (IRP6) in your personal capacity and your personal income tax return (ITR12).
For more information please refer to our following blogs & decision trees:
What is Provisional Tax? How and when?
Am I a Provisional taxpayer?
Do I need to file a tax return?