Have you ever started one of those ‘oh, this’ll be easy’ Do-It-Yourself jobs, only to find yourself utterly frustrated half-way through wondering - what was I thinking? Pieces of wood cut just a few millimetres short of what they should’ve been. Holes drilled in the wrong places. Screwdrivers in every size except the one you need, missing bolts or the wrong colour paint! These DIY disasters can land up costing you much more time and money to salvage (or in the worst-case scenario – start from scratch) than it would’ve if you’d hired a professional to do it for you from the get-go.
It’s a situation we see time and time again: Taxpayers who’ve used free, go-it-alone methods to do their tax return and who land up with their taxes in a mess. The main concern with this method is that there’s little in the way of guidance or prompting within the system, telling you exactly what you’re supposed to be filling out at each point, or what values you need to declare where. It’s exceptionally easy to make errors or omissions, and the scary part is that incorrect or incomplete tax returns can amount to penalties and administrative pain in the long run.
Did you know that SARS can penalise you with something called ‘unforced errors’? Legally, the onus is on you to have sufficient knowledge and understanding of the complex tax regulation and SARS guidelines to complete your taxes accurately. I’m not telling you this to create undue stress and panic. I’m telling you this because it happens – and it doesn’t need to!
Read more →
If you think earning an income from a global source isn’t taxable on home soil, I’m afraid I have some bad news. Whether you’re earning Dollars, Euros or Yen, as a South African, it’s more than likely you’ll have to pay tax on this income. This is because South Africa’s taxation system works on a residence-based tax system meaning we’re taxed on worldwide income.
There is, however, some good news!
Section 10 of the Income Tax Act offers a list of conditions where income earned (or at least a portion of it) for services rendered outside of South Africa borders will be exempt from income tax.
Read more →