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IRP5 FAQs

Posted 22 February 2017

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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2017/2018 Budget - The rich are going to pay more, but what does that mean for the rest of us?

Posted 22 February 2017

2017/2018 Budget - The rich are going to pay more, but what does that mean for the rest of us?


Personal Tax Rates (rates below)

Individuals across the country, those qualifying above the new tax threshold of R75 750 (previously R75 000) will be paying increased taxes of R16.5bn (previously R5.65bn in actual tax increase) for the next tax year, most of this will be for high income earners, however. Taxpayers generally across the board will be earning the tiniest bit more money each year as their tax brackets...

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Depreciation FAQs

Posted 17 February 2017

What constitutes wear and tear? What is depreciation? What is the depreciation limit?
Wear and Tear or Depreciation is the decrease in value of an asset. SARS allows you to deduct this decrease each year based on the tables. See here for the latest Depreciation Calculator

Can I claim depreciation for my car as a sole proprietor if I have a log book by using the tax table?
You would be able to depreciate your car over 5 years, but you need to then apportion it for the use of business travel based on the logbook...

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Tax Exemption for Foreign Employment Income : What You Need to Know

Posted 11 November 2016

Tax Exemption for Foreign Employment Income : What You Need to Know

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.

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6 Reasons Accounting Records Are Critical to Your Small Business

Posted 18 October 2016

6 Reasons Accounting Records Are Critical to Your Small Business

You’re an entrepreneur. A wildly innovative individual. An ideas person. A make-things-happen person. A real go-getter. Passionate about your business and pursuing your dreams. And brilliant at keeping your accounting records up to date. Chances are that last one doesn’t ring true, does it? Don’t feel alone, financial record-keeping is the bane of existence for most small business owners and managers. 

When you’re in the throes of building your empire from the gr...

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Special Stopper at SARS: What We Know For Sure

Posted 22 September 2016

Special Stopper at SARS: What We Know For Sure

Over the last few weeks, our helpdesk has received an alarming number of queries from taxpayers asking what they can do as their refunds are being held back by SARS due to a special stopper being placed on their account. It’s a complex situation and the only advice we've been able to provide has been for the individual to make contact with SARS directly to try resolve the matter.

The South African Institute of Tax Professionals (SAIT) issued a statement on Tuesday 20 September 2016 advising that they’re looking into the issue after numerous complaints had been raised...

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Promised a Guaranteed Tax Refund? Be Afraid - Be Very Afraid

Posted 16 September 2016

Promised a Guaranteed Tax Refund? Be Afraid - Be Very Afraid

Guarantees are pretty powerful – they’re used by leading manufacturers and retailers to gain our confidence and trust. We’ve all come across them at some point or another: “Life time guarantee”, “money back guarantee”, “product satisfaction guaranteed, or your money back”. They’re a promise. A promise that your purchase will provide you with a level of value, or a return on your investment. While a guarantee is common – expected, ...

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10 Ways to Spend Your Tax Refund

Posted 8 September 2016

10 Ways to Spend Your Tax Refund

It’s tax season, and one of the most compelling reasons to file a tax return (besides the fact that it’s the law, of course) is the chance that you’ve overpaid the taxman and that you’ll hear that sweet SMS sound of funds deposited into your bank account from SARS. Of course the best part about a tax refund is that it’s likely you hadn’t budgeted on the extra cash, and so you’re able to spend it as you please. Whether you choose to do so sensibly or splurge a little, we’ve rounded up some ideas on how to spend or invest your tax refund.

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7 Types of Tax Directives

Posted 19 August 2016



Imagine you’re an estate agent or luxury car salesman. Chances are that you don’t earn much (if anything) as a basic salary and you rely on a few big deals and commission payments to keep you afloat during quieter months.

Or ima...

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Tax Free Savings Accounts: Everything You Need to Know

Posted 21 June 2016

As a nation, South Africa does rather poorly on the savings front. With the majority living near or below the breadline, there’s not much to save when you’re more concerned with just getting through the month. Our high levels of consumer-debt, combined with little in the way of personal savings, means we become financial burdens on the government in the long-run...

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Food for Thought on Subsistence Allowances

Posted 13 June 2016

You’ve been up since 4am in order to catch yet another red-eye flight for a 9am business meeting - 1,400km away - and you’re already onto your third coffee by the time you board the plane. While you’re fairly accustomed to the frequent business trips requiring out of town travel, you’re still somewhat confused by the tax implications of the subsistenc...

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9 Steps to File an Objection to Your Tax Assessment

Posted 1 June 2016



You’ve been diligent with your tax obligations. You’ve paid your PAYE each month without fail. You’ve kept all the supporting documents for your deduction claims. You’ve carefully filled out your tax return, making sure you’ve put all the right amounts in all the right places, against all the right codes. (Pssst, if you used T...

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Sole Proprietor or Company: What's Best for Tax?

Posted 31 May 2016

Getting a new business venture off the ground is an equally exciting and stressful time. You’re enthusiastic about getting your new product or service out into the market, but you face quite an administrative process to get it off the ground legally.

A decision that often stumps many small business owners is whether to operate as a sole proprietor or as private company, a PTY Ltd. We receive many questions about this from entrepreneurs wanting to know the tax implications of each route.

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5 Great Reasons to File Your Tax Return Early This Year

Posted 24 May 2016

Are you the type of person dashing into the store to grab a birthday gift en route to a party? Or perhaps you’ve found yourself scratching through your craft box at 11pm the night before to make a ‘World Book Day’ outfit for your son? Or possibly you’re one of the hundreds of thousands of South Africans who waits until the last week of November to file your tax return?

While I’m not suggesting that every minute of your life needs to be pre-planned and organised, there are certainly a number of benefits to getting your tax done early...

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Tax on Bonus Payments: How Does it Work?

Posted 19 April 2016

For those fortunate enough to receive bonus payments as part of your remuneration, you’ll understand the frustration of seeing one amount on your letter of bonus, but a dwindled amount reflecting in your bank account on payment.

We receive hundreds of queries from people with regards to what percentage tax they’ll have to pay on a bonus they’ll be receiving, either annually or as an adhoc performance bonus. Much like other variable incomes, such as commission, there’s a misconception that tax on a bonus payment is withheld at a higher rate.

The fact is that there’s no special ‘bonus tax rate’...

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How is Commission Taxed? 3 Ways Your Company Taxes Commission

Posted 14 April 2016

Our helpdesk receives hundreds of questions related to tax where commission is involved. A misconception that comes up time and time again is that people believe commission is taxed at a higher rate than what a fixed salary is.

This isn’t true!

Tax on commission is at exactly the same rate as a fixed salary.

The confusion comes from the fact that tax is calculated on a different amount each month (depending on your performance, of course), and this can result in different tax rates being applied month to month...

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The Smart Way to Save Tax when Renting out a Property

Posted 8 April 2016

Taxpayers who earn rental income from a second property of theirs often don’t know what they need to do when it comes to declaring this income to SARS. Sometimes taxpayers think that they don’t have to declare this extra income, or can hide it from SARS by not entering it on their tax return form - a big mistake!

The truth is that extra income earned from rental is taxable, and SARS needs to know about it. In some cases - if the amount earned (profit) outside of a salary...

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What is Turnover Tax?

Posted 23 March 2016

Turnover Tax is a simplified tax system only available to sole proprietors, partnerships, companies or close corporations with a “qualifying turnover” of less than R1m per year. These types of entities are called micro businesses.

As the name implies, Turnover Tax is a type of tax, which is calculated against the turnover of a business, as opposed to a percentage of profit (i.e. income less business expenses) as per usual business tax. This difference reduces the administrat...

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What Medical Expenses Can You Claim Back from Tax

Posted 17 March 2016

Medical expenses are nothing to sneeze at. Private medical treatment is increasingly pushing the limits of medical aid scheme benefits and our wallets. It's an outlay few can avoid. Luckily, certain medical expenses come with a bit of tax relief in the way of tax credits.

A tax credit is a non-refundable rebate. This means that a portion of your qualifying expenses, in this case medical related spend, is converted to a tax credit, which is deducted from your overall tax liability (the amount of tax you have to pay SARS)...

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4 Common Provisional Tax Penalties - And How to Avoid Them

Posted 29 February 2016

 


Seasoned provisional taxpayers – those people who earn income from sources other than, or in addition to a regular ol' salary or traditional payment from an employer - are all too familiar with the process of estimating taxable income and submitting provisional tax returns. Not once - but twice a year!

Yes, it's a bit painful (although TaxTim makes it super easy) but entirely necessary if you don't want to be lumped with penalties from SARS...

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2016 Budget Speech: Welcome Back, Minister! You Couldn't Have Returned Just for the Free Lunch?

Posted 25 February 2016

The 24th of February 2016 was supposed to be a watershed moment for the Economy of South Africa. The old-new Minister of Finance, Pravin Gordhan, was to deliver his budget for the 2016/2017 tax year and save South Africa from a financial pit-fall in the form of an International Ratings Agency downgrade. The jury is still out on whether or not this is possible. Immediately after the budget was revealed the Rand tumbled 2%, which doesn’t bode well for market sentiment. However, ...

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2016/2017 Tax Tables

Posted 24 February 2016

Income Tax Tables for the 2017 Tax Year - 1 March 2016 to 28 February 2017


Income Tax Thresholds



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What You Need to Know About Changes to the Tax Clearance System

Posted 23 February 2016

Tax compliance makes its way into many aspects of life and business. Perhaps you’re considering applying for a tender, or for a foreign investment allowance to move funds offshore, or even looking to emigrate and leave our shores. These are just a few examples of instances where you may be asked by a third party to provide a Tax Clearance Certificate.

And until now, the course of action to obtain your certificate has been a tedious one.

Upon request, SARS would check its records and verify that the taxpayer had filed all required tax returns, paid all taxes, penalties and interest due, before releasing a Tax Clearance Certificate confirming a good standing...

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The Ins and Outs of Donations Tax

Posted 17 February 2016

Have you been the lucky recipient of a gift or donation from a generous family member of friend? Perhaps they struck it lucky on the Lotto and decided to share their winnings with you!

Or maybe you're the giving type and have donated cash, shares or even property to someone you felt deserved a little boost.

Irrespective of whether you're the giver or receiver of a donation or gift, it's good to understand donations from a tax perspective, and how to declare these to SARS.

Ready to find out?

Let's get started.

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Retirement Funds Tax Laws Effective 1 March 2016 - How SARS' New Changes Affect You!

Posted 10 February 2016

If you’re diligently putting money away for your retirement in the form of a pension, provident fund or retirement annuity, you may be curious – perhaps even a touch concerned – about the changes SARS has made to the retirement fund tax laws, which come into effect on 1 March 2016.

If you missed the news, here's a quick overview.

SARS have changed how contributions to retirement funds are treated from a tax perspective, as well as how your funds are managed when you retire...

Read more →

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Blog Categories


Submit your
tax return
right here!


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started