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Latest Posts in TaxTim's Blog

Important Notice: You Will Face New Penalties if You Miss the January Tax Deadline



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...

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FAQ: Cryptocurrency and Tax



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.

...

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The Ins and Outs of Donations Tax



Have you been the lucky recipient of a gift or donation from a generous family member or 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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How to calculate totals under source codes 3696 and 3699




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. ...

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Calculate interest on late provisional tax payment



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:



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What does a Completion Letter from SARS mean?



Completion Letter

You will receive a Completion Letter if all goes well and SARS is happy with your documents. This means that SARS is not adjusting your Original Assessment and if you have a refund due, it should be paid out in 7 working days (provided you have no tax debt due or outstanding tax returns from prior years). Similarly, if you owe tax to SARS per your Original Assessment, the amount you owe will remain unchanged.

An example of a...



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When Will SARS Pay My Tax Refund?



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?”.

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Important Notice: You Will Face New Penalties if You Miss the November Tax Deadline



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...

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What is Identity Fraud?



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’...

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Crypto investors are on SARS’ hitlist



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 ...

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10 Tips to Pay Less Tax




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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I have received a Reduced Assessment from SARS



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...

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How Long do I have to wait for my tax refund?




Like in previous years, there have always been opening tax season niggles and 2021 has been no different. Patience is a virtue, so the adage goes.

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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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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 IT3b 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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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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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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