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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"Claim it back from Tax" The Fact behind the Fiction

Posted 14 February 2012

There is this misconception that if one has an expense or makes a donation then “it can be claimed back from tax” While to the non-tax literate this may be true in a sense, having expenses or making donations for this purpose only, could actually backfire from a cash flow point of view. It is correct that you can claim the expense or the donation made as a deduction, this amount only comes off after all your income has been declared. So in affect it only reduces your taxable income and therefore the amount of tax paid...

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Taxable vs Accounting: Setting the record straight

Posted 23 January 2012

There is a widely believed myth that all expenses and incomes of a business can lower taxes. The Taxable vs Accounting deductibility argument is one which will forever rage on. The question is: what is the difference?

Many countries around the world stick to a particular set of accounting standards released by the International Accounting Standards Board (IASB), while those same countries have their own individual tax laws. This leads to a difference between what’s allowable for tax purposes and what’s allowable for accounting purposes....

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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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New Year's Tax News

Posted 3 January 2012

Well 2011 has come and gone and we look forward to the 2012 Tax Season ending for individuals on 29 February 2012 (SARS is giving us an extra day this year). Filing season only opens at the beginning of July, so there is plenty of time between February and July to get everything ready for submission. Of course TaxTim will be able to help you with all your filing needs for the next Tax Season. Keep on the lookout for exciting updates throughout the next few weeks from TaxTim.

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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