Do Your Tax Return Easily Avoid penalties Maximise your refund
Surely most of us love to travel, but traveling for business purposes is no fun when it comes to completing your tax return.
SARS has some rather onerous requirements, but as long as you know what you need, submitting your documents to SARS should be plain sailing.
Read more →
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.
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....
Read more →
SARS has recently issued a new guide with regards to updating your banking details with them. This was done in order to reduce the risk of refunds being paid into the wrong accounts and also to streamline the process, which has tended to be an onerous one in the past.
Change of bank details can be done:
When did this happen?
Previously, assuming that SARS did not request any documents for verification and everything for the year was accepted, refunds due were typically paid out quite quickly to taxpayers within 1-2 days.
From 2015, SARS has implemented a new requirement that ALL tax returns, since the first year a taxpayer registered for a tax reference number, must be submitted before any refund is paid out.
...
Read more →
Now that the 2018 tax season is open and hundreds of thousands of South Africans are filing their annual tax returns, every day people ask us “when will I get my refund from SARS?”.
While we’re not involved in the payments of tax refunds, we can provide a little insight into the SARS processes and timelines. So here goes …
Read more →
Date
Taxpayer's Full Name
Address
To Whom It May Concern,
Subject: medical aid contributions paid on behalf of a dependant
This letter serves to confirm that I, ________________________(taxpayer's full name), __________________________(ID number) am contributing to a medical aid on behalf of _______________________________(name of dependant),___________________(ID number). He/she is/is not financially dependent on me a...
Read more →
COMPANY LETTERHEAD
Date
Employee's Full Name
Address
To Whom It May Concern,
Subject: Confirmation of foreign employment
This letter serves to confirm that____________________________(Name of employee) _______________________(ID number) is employed by __________________________(company name) in the capacity of__________________________(position).
He/she is contracted to work overseas in _______________ (country) from ______________dd/mm/yy to ________________dd/mm/yy. ...
Read more →
COMPANY LETTERHEAD
Date
Employee's Full Name
Address
To Whom It May Concern,
Subject: Permission to work from home
This letter serves to confirm that _______________________________ (Name of employee), _____________________ (ID number) who is employed by our firm ___________________ (Company name) in the capacity of __________________________ (Position) has permission to work from home in order to fulfil his/her duties to the company. ...
Read more →
Tax isn’t the easiest of subjects to navigate. Besides the long list of legalese to master, there’s the fact that tax legislation evolves year on year. What was applicable on your tax return 2 or 3 years ago, isn’t necessarily valid on your next, and what’s right this year, may change next season.
It’s unsurprising then, that when faced with the daunting task of filing their annual tax return, many people turn to a friend, colleague or trusted broker to help them out, in the hope that they’re more proficient...
Read more →
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...
Read more →
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...
Read more →
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...
Read more →
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.
Read more →
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...
Read more →
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’...
Read more →
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...
Read more →
Do Your Tax Return Easily Avoid penalties Maximise your refund