Written by Patrick
Posted 16 May 2022
According to SARS commissioner Edward Kieswetter, some South Africans who came into money were eager to “display their wealth”, giving cause for SARS to look into the income of these individuals.
In many cases, SARS found that there was a major disconnect between the income that was being declared and the type of lifestyle that these individuals were leading, according to third-party data. These include social media platforms.
As we already know, people are often i...
Written by Patrick
Posted 16 May 2022
For months, SARS has been clear about its plan to clamp down on crypto investors. While many may be under the impression that crypto is going under the radar, SARS is firmly taking the position that it is not.
With luxury audits being the order of the day, SARS is continuously looking into those who live luxurious lifestyles, particular those who own luxury cars and crypto assets, without declaring their income to the revenue service.
In many cases, this income pertains to the...
Written by Nicci
Posted 12 May 2022
Ensure you have a tax number & eFiling profile
If you have not registered for SARS eFiling or you don't have a tax number don’t worry, SARS has made things a lot easier this year.
Getting a tax number is now as easy as registering on SARS eFiling. Simply click here and if you don’t have a personal income tax number yet, SARS will automatically issue ...
Written by Neo
Posted 19 April 2022
Once you’ve completed filing your tax return, it’s possible to find that instead of getting money back
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Written by Patrick
Posted 11 April 2022
Let’s face it, SARS didn’t make it easy for taxpayers to claim their home office expenses this past tax season. We can’t blame them really - being faced with millions of newbie work-from-homers, they had to weed out the legitimate claims from the chancers.
At the start of the season, they made it clear that they would only allow claims for taxpayers who had a separate office at home, set up specifically for their work, which was used by them alone. The office could n...
Written by Vee
Posted 17 March 2022
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 foreign remuneration earned (up to R1,25m) for services rendered outside of South Africa borders will be exempt from income tax.
Read more →
Written by Neo
Posted 7 March 2022
When planning your wedding, it’s highly unlikely that anything related to tax features on your agenda. However, when saying “I do” it’s very important to understand the tax laws associated with marriage because SARS treats income differently according to the type of marriage contract that binds you and your spouse.
Marriage in Community of Property
If you marry without an antenuptial contract, you’ll by default be married in community of property...
Written by Patrick
Posted 24 February 2022
Finance Minister, Enoch Godongwana, delivered his maiden budget speech on 23 February.
The speech started by indicating that there are still high risks to the economy, which is slowly recovering from the Covid-19 pandemic. The budget reasserts the commitment made in the 2021 MTBPS to set the economy’s course towards growth and fiscal sustainability.
It was announced that employment support will also be extended to the most vulnerable, service delivery shortcomings would ...
Written by Nicci
Posted 23 February 2022
All eyes were on Finance Minister, Enoch Godongwana, when he delivered his maiden budget speech to South Africans yesterday. Taxpayers breathed a sigh of relief when he announced that there would be no major tax hikes. This was welcome news for South Africans who are dealing with the effects of Covid-19, rising inflation, interest rate hikes and significant fuel price increases. 'Now is not the time to increase taxes' - thank you Mr Minister, we couldn't agree with you more!
The minister announced that SARS had brought in R182 billion more in taxes than had been predicted last year in February...
Written by Patrick
Posted 23 February 2022
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 ...
Written by Patrick
Posted 14 February 2022
Have you found yourself with a huge tax bill at the end of the tax year, and no money to pay it? SARS is making your life easier by changing the way it does tax deductions on your retirement fund from 1 March 2022.
You may receive several annuities or pensions from your previous employer or pension fund. In the past, your fund used to look at each income source separately when working out your tax.
The separate amounts you received probably fell bel...
Written by Patrick
Posted 10 February 2022
President Cyril Ramaphosa made the following key announcements in the State of the Nation Address (SoNA) he delivered on 10 February 2022.
Economic issues were high on the Agenda. There is recognition that unemployment, poverty, and inequality need to be addressed to create conditions for long-term stability and development. New energy generation projects were once again promised.
Progress is being made with Covid-19 vaccinations. Thirty million doses have been administered, w...
Written by Nicci
Posted 31 January 2022
1. SARS eFiling connection issue: Resolved
Problem description
When TaxTim tries to connect to individual taxpayers' profiles, eFiling is returning an 'unexpected system error'. This is affecting all Tax Practitioners.
How taxpayers are affected
TaxTim cannot connect to the taxpayer's eF...
Written by Nicci
Posted 24 January 2022
If you’re a provisional taxpayer, make sure you file your tax return before or on the deadline of 31 January 2022. You can check here to see if you are a provisional taxpayer.
SARS is warning that those who fail to submit on time, will face penalties. Legislation has changed and you will have to pay penalties come February 2022 if you have not submitted one or more...
Written by Patrick
Posted 20 January 2022
Does SARS regard cryptocurrency as a real currency?
No - SARS does not regard cryptocurrency as a currency, but rather as an intangible asset. In fact, the annual tax return (ITR12) refers to 'Crypto Assets' and not Cryptocurrency. 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.
...
Written by Neo
Posted 12 January 2022
Perhaps you just tried to submit your tax return and you instantly got an error relating to 3696 and 3699. As frustrating as it could be, don’t worry the error can be fixed. Maybe, you might have just simply left an amount out. Let’s have a look at what you should do, in order to crack these codes correctly – in that way making filing much more easier for you.
You’ll need to check your IRP5 to make sure you answered TaxTim's questions for these amounts correctly. Your IRP5 can show one or more amounts with source codes describing the income you received from your employer that year. ...
Written by Evan
Posted 28 December 2021
SARS charges interest on late payments made toward provisional tax deadlines.
To calculate this late payment penalty, use the formula below:
Provisional tax amount x 7% x (days after deadline / 365)
Use the calculator below:
Written by Vee
Posted 16 November 2021
Hundreds of thousands of South Africans are filing their annual tax returns and everyday people ask us “when will I get my refund from SARS?”.
Read more →
Written by Patrick
Posted 12 November 2021
If you’re an individual non-provisional taxpayer, make sure you file your tax return before or on the deadline of 2 December 2021.
SARS is warning that those who fail to submit on time, will face penalties. Legislation has changed and you will have to pay penalties in January 2022 if you have not submitted one or more of your returns. This means that if you file your 2021 return after the deadline, SARS will levy an admin penalty.
Before, you only paid penalties when two...
Written by Patrick
Posted 20 October 2021
Identity fraud happens when someone uses your personal information, such as your name and identity number, without your permission.
Criminals steal your identifying information from your home, car or wallet and even your rubbish bins and use your details to commit crime. Con artists can also get your personal and confidential information from the internet, social networking sites, emails, spoofed websites, Short Message Services (SMS) and unsolicited telephone calls.
It’...
Written by Patrick
Posted 20 September 2021
Earlier this year, SARS reached out to cryptocurrency platforms to access their lists of clients and information in its bid to clamp down on the wealthy.
Many South Africans have been misinformed and are under the impression that crypto-activity is under the radar. Some believe it is untraceable or that it only needs to be declared to SARS when it is traded. This is incorrect as all individuals who have bought and held crypto assets during the tax year must disclose these holdings to ...
Written by Neo
Posted 18 August 2021
These tips are part of TaxTim's personalised recommendation tool called the Tax Health Score. Once you file your tax return with TaxTim,
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Written by Nicci
Posted 12 July 2021
This is good news! A Reduced Assessment means you owe LESS tax. i.e SARS has assessed your taxable income to be a lower or reduced amount compared to their Original Assessment.
The Reduced Assessment can be confusing to taxpayers who think they need to pay the amount on it. However, it’s important to realise the amount on this assessment must not be viewed in isolation. It must be added to the Original Assessment and the OVERALL balance is the amount t...
Written by Nicci
Posted 22 June 2021
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...
Written by Patrick
Posted 18 June 2021
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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