Latest Posts in TaxTim's Blog

Retrenched? Here’s how you will be taxed



In 2020, about 2.2 million jobs were lost in South Africa and in 2021, that number is expected to double as a result of Covid-19. With that, we have found that there are many questions surrounding the subject of taxes and severance packages. Here’s everything you need to know.

The Basic Conditions of Employment Act states that your severance pay should include at least one week’s worth of remuneration for every full year of work. Your severance package may consist of your ...

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The Momentum HealthSaver and your tax return



The Momentum HealthSaver is a savings account which works with your medical aid and allows you to save for additional medical  costs which are not covered by your medical aid.

When it comes to filing your annual tax return, there seems to be some confusion around how your monthly  payments to the HealthSaver, as well as medical costs paid from the HealthSaver, are treated for tax purposes.

Momentum Tax Certificates

It is important to point ou...

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SARS can now fine you or take you to jail for these tax mistakes




In the past SARS needed to prove that a taxpayer had committed a tax crime “willfully and without just cause” but the legislation has just been changed. The court can now find you guilty of a tax crime even in cases of negligence or even in a case where the taxpayer may have made a mistake.

The amended law separates non-compliance into two groups: the first is where the taxpayer’s intention is not considered, and the other group is where the taxpayer’s intentio...

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5 Reasons you Still Need to File your Tax Return




SARS recently announced that if you earn less than R500 000 in a year, and fulfill a series of complicated criteria, you may not have to file a tax return in 2021. 


However, we advise you to take GREAT CARE here, and understand your duties properly, because if you don't, you may suffer for it later on.

Here are the top 5 reasons why not to skip filing your tax return this season:

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What you need to know about SARS auto-assessments




1. What is an auto-assessment?
This is an automatic assessment issued by SARS to certain taxpayers.

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How to reject the SARS Auto Assessment




If SARS have issued you an Auto Assessment, you will need to follow these steps to reject it so that we can help you to complete and submit your return to SARS.

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How to add your Company Tax Number to your eFiling profile



As part of SARS’ mission to simplify the eFiling system, the Tax Type Transfer process was updated in 2020 for all Tax products in a bid to offer users complete control of their eFiling profiles. 

What's new on eFiling?

 Overall, you can expect to see the following key changes introduced to eFiling from the end of April 2021: 

  • Changes to adding taxpayers to a profile (Organisations, Practitioners & ind...


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Where do I get my IT3(b) tax certificate from?




When we finally decide to complete our tax return, the last thing we want is a delay in finding that last piece of missing information. In case your bank or investment fund hasn't sent you your IT3b tax certificate by mail or email earlier in the year, here are the fastest ways to download your tax certificate online in record time.

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Renting out your home and the effect on capital gains tax




Our Helpdesk receives lots of questions from home sellers who rented out their primary residence for some of the

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The Less Common Tax Deductions




We’re aware that sometimes taxpayers may not understand all of the deductions which appear on the tax return. And because of this, expenses that could have been deducted get missed. To help make things easier for you, we’ve explained some of these less understood tax deductions which may be overlooked by taxpayers.  They all appear in the Other Deductions section of the ITR12.

The s11(nA) and s11(nB)
If an employee is in breach of an agreement with their employer, they may be asked to pay back a benefit they received from them e.g bonus, maternity leave benefit, bursary, sign on bonus etc. ...

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Frequently asked questions about tax & cryptocurrency



  1. Does SARS regard cryptocurrency as a real currency?

    At this time, cryptocurrency is not regarded as a legal currency and they operate independently from the central bank. As there are currently no laws or regulations governing the use of cryptocurrency in South Africa, crypto traders or users have limited legal protection according to the general common law. In other words, if you choose to use or trade cryptocurrency you do so at your own risk.

  2. How does SARS treat crypto?...


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Been working from home? You can get money back from SARS




Good news if you’ve been working from home for the past year. You can claim a tax deduction if you worked from home for more than half of your total working hours or for more than six months during the tax year that started in March 2020.

“Claim for your home office if you started working from home at the end of March, and worked there for at least 6 months till the end of February 2021, to deduct this benefit in the tax ...

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Working remotely? You could be liable for double taxation




In these ever-changing times, many South Africans working abroad have found themselves working back in their home country. Although this may not have been their first choice, SARS is tightening its hold on foreign income earners, and the tax authority will be diving deeper into expat taxes, but what does that mean and how will that affect your taxes this year? Here’s what you need to know.

Usually, in the case where Saffas were working and earning an income in a foreign country,...

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SARS advertises 370 jobs to clamp down on SAs wealthy



In the national budget speech this year, finance minister, Tito Mboweni announced the initiation of a new unit within SARS dedicated to improving tax compliance from wealthy South Africans. In accordance with Mboweni´s plans for tax revenue collection, SARS has recently updated its vacancies page
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Tax on your travel allowance after Covid-19 lockdown regulations




Do you receive a travel allowance from your employer because your job used to entail significant travel? As the Covid-19 pandemic hit and lockdown restrictions have curbed travel, you might be wondering how this will affect your taxes. Here’s what you need to know to avoid owing the taxman, even more, this tax season.

 

How does SARS tax my travel allowance?

Under normal circumstances, your employer would only offer you a travel allowance if your job requi...

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Individual Tax Rate Tables




RATES OF TAX FOR INDIVIDUALS

 

2022 tax year (1 March 2021 - 28 February 2022) - see changes from last year



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WILL you be ready when the time comes?




By Stella Pickard - Quickwill

 

“A society grows great when old men plant trees whose shade they know they shall never sit in.” - ANON

More than 70% of South Africans don’t have a valid will. The reason for this, we believe, is because people are not educated on why wills are so important and how you can use them to protect your family and save tax. 

By drafting a will, you are planting a tree in which shade your family can sit. Let me explain… 

...

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I submitted all my documents to SARS, They've asked again. Why?




We are seeing many cases where taxpayers submit their documents to SARS, wait 21 working days (sometimes longer) only to receive a second letter on eFiling which requests the exact same documents again.

The letter we are referring to here is the generic SARS document request which looks like the below:

The South African Revenue Service (SARS) thanks you for submitting the revised income tax return for the 2018 tax period.

The revised information still does not match the information in the possession of the SARS and/or the income tax return has been identified for verification in terms of the Tax Administration Act....

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FAQ: Stock Options



Companies issue stock options (also called share options) to key employees in order to attract and retain talent.

A stock option is different from a share – a stock option is the right to acquire a share at a specific date in the future at a set price.

For example, when John joins Company A, he is granted 5000 stock options at a price of R55 per stock option. Assume that Company A’s share price rises to R75, he will make a profit of R20 per option when he is allowe...

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Budget 2021: No Tax Hikes




The Minister delivered some welcome news to South Africans yesterday when he announced that plans to hike taxes by R40 billion rand over the next four years, have been scrapped. This is largely attributed to a surge in tax revenue from mines, as well as a faster than expected recovery in VAT collections towards the end of last year.

He went on further to say, that there would be no significant tax increases at all in the year ahead. Contrary to speculation, the much-anticipated Covid-19 vaccination programme will not be funded by tax hikes...

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IRP5 FAQs



What is an IRP5?
An IRP5 is the employee's tax certificate that is issued to him/her at the end of each tax year detailing all employer/employee related incomes, deductions, and related taxes. The employee uses it specifically to complete his/her income tax return for a specific year.

Do I need an IRP5?
Yes, you do if you were employed during the tax year.

Can I submit a return without an IRP5? OR Am I able to submit returns without my IRP5? OR Are you able to submit without the IRP5?...

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Why does SARS require manual intervention to finalise my return?




When a Tax Return is filed usually SARS issues an immediate assessment (ITA34), however sometimes they do need to do a further manual check on their side.

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FAQ: Provisional Tax



1. How many returns should I file each year if I am a provisional taxpayer?

You are required to file 3 returns i.e.  2 provisional tax returns (IRP6s) and one annual return (ITR12). The reason you need to file the annual return too is because your provisional returns are based on an estimate of your taxable income, while the annual return reflects your actual taxable income. Any provisional payments you have made for the year will be deducted from your final tax liability, which is, calculated when you submit your annual tax return for assessment.

2...

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Top Tips for Provisional Taxpayers




1. Estimate your taxable income for the whole tax year

Remember that both your first and second provisional return (IRP6) must reflect an estimate of your taxable income for the full 12 months of the tax year.

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New South African Expat Tax Changes in 2021




In a bid to meet its tax revenue quotas, SARS began introducing changes to the expatriate laws which took effect on 1 March 2020, which saw the launch of the Foreign Employment Unit.

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