I receive a bonus from my boss every year, but this bonus is not guaranteed, we only receive it if we reach our targets. For the past couple of years we have reached our target and have received the bonus and SARS has now made me a provisional tax payer. I have also just submitted my tax return and I received my statement of account and SARS has charged me a huge amount as penalty for under estimation of provisional tax. Why would this be?
This is because you did not submit a provisional tax return to SARS. You can click object and then file an objection stating that you should not be charged this because you are not a provisional taxpayer - the bonus would appear on your IRP5 and the company would pay the PAYE over to SARS. Else do you earn more than R30 000 from other income or interest?
MEsays: 25 November 2015 at 21:07
The bonus is paid directly to me from my boss - it does not reflect on my IRP 5! It is not a guaranteed bonus it is only if we reach our goals and he gives us a bonus from his own pocket....
TaxTimsays: 25 November 2015 at 21:20
That is why you were classified as a provisional taxpayer, you would have had deregister for this. Object for this year and explain to SARS the situation.
MEsays: 25 November 2015 at 21:22
Thank you much appreciated
TaxTimsays: 25 November 2015 at 21:23
Only a pleasure!
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