11 Types of Tax Directives
Updated 14 April 2023
Imagine you’re an estate agent or luxury car salesman. Chances are that you don’t earn much (if anything) as a basic salary and you rely on a few big deals and commission payments to keep you afloat during quieter months.
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10 Tips to Pay Less Tax
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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IRP5 FAQs
Posted 22 February 2021
What is an IRP5?
An IRP5 is the employee's tax certificate that is issued to him/her at the end of each tax year detailing all employer/employee related incomes, deductions, and related taxes. The employee uses it specifically to complete his/her income tax return for a specific year.
Do I need an IRP5?
Yes, you do if you were employed during the tax year.
Can I submit a return without an IRP5? OR Am I able to submit returns without my IRP5? OR Are you able to submit without the IRP5?...
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Tax on Bonus Payments: How Does it Work?
Posted 18 January 2021
For those fortunate enough to receive bonus payments as part of your remuneration, you’ll understand the
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How is Commission Taxed? 3 Ways Your Company Taxes Commission
Posted 23 June 2020
Our helpdesk receives hundreds of questions related to tax where commission is involved. A misconception that comes up time
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What Medical Expenses Can You Claim Back from Tax
Posted 13 May 2020
Medical expenses are nothing to sneeze at. Private medical treatment is increasingly pushing the limits of medical aid scheme
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Do I earn enough to have to pay tax?
Posted 23 April 2020
Why must I pay tax, I don’t earn enough! Will I get a penalty if I don’t disclose all my income to SARS?
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7 Types of Tax Directives
Posted 19 April 2020
Imagine you’re an estate agent or luxury car salesman. Chances are that you don’t earn much (if anything) as a basic salary
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How does Pay-As-You-Earn (PAYE) work?
Posted 10 April 2020
You may have seen the word PAYE on your IRP5 payslip or heard it mentioned by your employer, but have no idea of its meaning.
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Top questions on Commission Earners
Posted 7 June 2019
Our helpdesk receives hundreds of questions from commission earners about how their tax is calculated. Many are also confused about which expenses they can claim. Hopefully our FAQ will help other taxpayers who might be puzzling over the same issues.
1. I have a salary and earn a small commission; can I claim for my travel to and from work every day? (The commission is based on the sales that my team makes telephonically per month).
Should the commiss...
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Contract Workers FAQs
Posted 6 March 2017
Contracting Benefits vs Salary?
You will still be able to claim deductions for medical, travel and RA directly regardless of how you are earning income.
Contract worker and the tax effects?
Contractors are taxed if they earn above the threshold. This is the same as a full time employee.
Tax Thresholds?
For the 2018 tax year, anyone under 65 years of age earning above R75 750 will not pay tax.
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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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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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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SARS Tax Tables for 2014
Posted 4 July 2013
Tax rates for Individuals and Trusts
Income tax rates: Natural persons (that's you) and special trusts.
2013 tax year: 1 March 2013 - 28 Feb 2014.
Individuals and Special Trusts:
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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...Read more →
SARS Tax Tables for 2013
Posted 18 January 2013
Tax rates for Individuals and Trusts
Income tax rates: Natural persons (that's you) and special trusts.
2013 tax year: 1 March 2012 - 28 Feb 2013.
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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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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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How do I calculate my earnings after tax? Try our income tax calculator
Posted 6 June 2012
Most employees negotiate their salary based on the gross amount (or cost to company) - the whole amount paid by their employer. Since income tax is deducted from this gross amount, in most cases the taxpayer doesn't know how much money actually goes into their bank account each month, after tax.
SARS levies employee's tax monthly and employers must pay that over to SARS every month. This tax is called PAYE (Pay As You Earn). PAYE is calculated based on your taxable income. This is different to your gross income and is calculated as follows:
...
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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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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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