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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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...

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Thank you Minister - we expected worse! 2015 Budget

Posted 25 February 2015

New Finance Minister Nene delivers his first budget with some “better than expected” tax increases. The fight against corruption was highlighted with the minster announcing a series of reforms and procedures to be introduced both to curb corruption and make doing business with the state easier. The minister announced that R25bn would be saved in expenditure over the next two years, but R16.8bn is to be raised this year via tax increases and a remarkably large rise in the fuel and road accident fund levies. To be honest, we expected greater tax increases from the minister, thankfully he spared us some of the pain! ...

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What to Expect after Submitting your Tax Return to SARS

Posted 23 July 2014

As soon as tax season opens in July, many taxpayers rush to submit their ITR12 tax returns as early as possible, eagerly hoping for a nice refund. After the rush, when nothing happens, they often ask us "Ok I have submitted. What happens now?" In most cases where an income tax refund is due to a taxpayer, SARS pays it out within one or two days. However there are many instances when this does not happen, leaving people feeling unsure as to what is happening with their tax return and tax refund. ...

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What if I am not tax compliant?

Posted 22 May 2014

SARS, in their attempt to promote compliant taxpayers and maximise timely revenue collection, have traditionally imposed penalties for late filing of tax returns. In 2012  SARS upped their game significantly and imposed heavy fines for the following transgressions which still hold to today:

• Failure to register as a taxpayer.

• Failure to inform SARS of a change of address and other personal particulars.

...

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2014 Budget - A move to economic transformation

Posted 26 February 2014

In delivering what could possibly be his last annual budget and perhaps in an election year a very pragmatic one, Minister Pravin Gordhan painted a rather positive picture for the future of South Africa, whilst at the same time warning of the impact the global economy is having on the South African economy. He too, had a “good story” to tell of how well managed the economy is and how we have survived the economic downturn of the last half decade. The minister, like his predecessors b...

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Garnishee orders explained: How SARS can deduct penalties directly from your pay cheque and how to stop it

Posted 14 November 2013

The last days of the month are often the most exciting for employees as they look forward to spending their monthly pay cheques. Unfortunately for many taxpayers anticipation quickly turns to grief when the money they receive in their bank account is suddenly less than they had expected. Stress and anxiety then result in light of impending debit orders and monthly expenses that need to be paid.

Apart from the ordinary deductions that your employer takes off your salary each month - expenses for your benefit such as medical aid or a retirement / pension plan - there is another deduction that can take place unexpectedly: a garnishee order...

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Important Information for Surviving the SARS Outbreak

Posted 18 June 2013

From the office of the Center for Dis-Ease Control, 12 Bliksem Straat, Pretoria, South Africa

EPIDEMIOLOGICAL INFORMATION

Severe Anxiety from Revenue Services (SARS) is a common affliction affecting millions of South Africans in all major city centres every year. Historically, symptoms begin to present themselves in the winter season from 1 July and continue to increase in severity towards a statistical peak for the epidemic on 22 November every year...

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The effect of the 2013/14 annual budget speech on the average South African taxpayer

Posted 28 February 2013

It was with great enthusiasm that we at TaxTim awaited delivery by the Minister of Finance of his annual budget speech this afternoon, especially after some of the shocks experienced by taxpayers and tax professionals last year. Surprisingly he delivered a very mild budget in terms of individuals with the Minister stating, “No tax rises.” The main focus areas relating to tax in this budget speech were on compliance, tax evasion and big companies seeking to shift their income around the world in order to avoid higher taxes...

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Why employers should help their employees with tax

Posted 25 February 2013

Individual taxpayers have traditionally been told that when it comes to tax returns, they're on their own with regard to submitting each year and their employer does not need to get involved. Despite the employer making payment of PAYE (the majority of their tax liability) on their behalf, after handing over their IRP5 detailing this payment they resume business as usual and the employee is left to navigate the ever-challenging tax system on their own, without any assistance. Fortunately this attitude is changing as more companies recognise the benefits of helping staff with their tax matters. ...

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How to manage your tax affairs running a business in your own name as a sole-proprietor

Posted 1 October 2012

South Africa is brimming with entrepreneurs and small business owners who keep the economy running. These people may or may not be earning a regular salary too, but all of them operate a non-registered business in their own name - a so-called sole-proprietorship. In this blog post we will discuss how such a business pays tax, how it is taxed, and how to separate personal and business affairs to make tax deductions correctly.

To register or not to register as a company? ...

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Why do I need to submit an Income Tax Return if my employer pays my Tax?

Posted 6 September 2012

A question often asked is, "If my boss pays over my tax then why do I have to do anything?"

If you earn below R160 000 per year, SARS does not require that you complete and submit an ITR12 tax return. HOWEVER SARS will charge you an admin penalty for not submitting a return AND if you don't mention all your deductions you can't maximise your potential refund. So rather submit a return every year and stay tax compliant. With TaxTim it's easy. Remember as well that SARS doesn't know everything about you so you need to tell them to maximise your potential refund! ...

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SARS is asking for more documents. Are they auditing me?

Posted 13 August 2012

For most people upon submission of their year-end income tax return, either nothing much will happen or a refund will be due, this being paid back within a matter of days. However in a small number of cases SARS requires extra documentation or proof to be submitted so that they can verify that everything you submitted in your tax return is correct. Don’t be afraid, although many people consider this an “audit” it isn’t nearly as frightening as that and doesn't mean you have done anything wrong. A true audit would be SARS requesting years of past documentation and opening up for examination all your tax affairs from previous years. ...

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I'm retired at 65 years and older - what income tax benefits do I qualify for in retirement?

Posted 23 July 2012

It would seem that SARS often prioritises younger taxpayers who are still working and receive a constant flow of income. However for many older South African taxpayers over the age of 65 who have retired or are still working, there are actually quite a few benefits to enjoy.

Firstly at 65 the tax threshold above which you would even begin paying tax is higher, at R99 056 per year (in 2012 it was R93 150). What's more, those taxpayers who are older than 75 years of age get an even bigger break at R110 889 per year (in 2012 it was R104 261)...

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South African budget 2012/2013 - "Tax by stealth"

Posted 23 February 2012

Eagerly anticipating the budget this year and forever the optimist, Finance Minister Pravin Gordhan started off well: R9.5bn of individual tax savings and revenue collection up by R10bn from the latest estimates. However, for the individual taxpayer, things went slightly downhill from there... Let’s unpack this a bit.

Not all Doom and Gloom

Ok, ok so maybe I have been too harsh as only certain individuals (the richer ones) will actually be subject to greater tax, the lower end income earners will benefit quite a bit from the new tax changes...

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New tax credit to replace medical aid deductions in post 2012 Tax Year

Posted 21 February 2012

The 2012 tax year has almost come and gone, and being annual budget time, anxious taxpayers are unsure what to expect. Is there any room to be taxed further? All will be revealed on Wednesday the 22nd, but in the meantime let's focus on the new medical aid tax regime.

Gone are the days of paying your spouse's medical aid and claiming the deduction just because you are in a higher tax bracket. From the 2013 tax year onwards that deduction is no longer allowed. Instead it will be replaced with a tax credit per dependent. "What is the difference?" I hear the average taxpayer ask, and "How does it affect me?" ...

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What is the benefit of actually spending time looking at your tax return?

Posted 16 January 2012

You always hear of people saying they are terrified of Tax and they just hand it over to some accountant who does it for them and they never actually see it until the next year when the whole process starts again.  In most cases the accountant never even asks for any information and just submits a tax return based on a simple IRP5. Now that may be great for someone who earns a salary and has absolutely nothing else going on, tax related that is, but the poor ignorant taxpayer is potentially throwing away hundreds of Rands on an "expert" who isn't even doing their job properly. Not to mention the possible refund the taxpayer is missing out on. ...

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Tax Season 2011

Posted 22 December 2011

So Tax Season has come and gone this November and yet Tim thinks some of you may have not submitted your returns yet.

Although filing season is over, you can still drop your returns off at SARS. (Penalties may apply) Remember provisional taxpayers have to submit before 31 January 2012.

Watch out for more updates!
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