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Louwrens says: 5 February 2020 at 11:31 At the start of the 2021 tax year I will be earning a monthly income from my living annuity [LA], however as I understand from the provider of the LA, that tax will be deducted by them before I receive the monthly amount. I am registered as a provisional taxpayer and will be earning additional income on top of the LA income. So, I therefore assume that I can continue being a provisional taxpayer and declare the additional income only in the IRP6, or would I have to declare both incomes and then pay provisional tax on the total yearly earnings and claim the tax deducted by the LA provider back when completing my tax return? |
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TaxTim says: 5 February 2020 at 11:53 You need to check with the administrators of the LA to know how much tax they've deducted as the provisional return needs to have your total income for the year on it, you are then able to deduct the tax that you paid on the LA under the PAYE section on your provisional return, the rest of the tax due should however only be on the additional income. This means that even though you are required to declare the LA on the provisional return you would not be required to pay tax on the income if you are already paying PAYE on it. |
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