Top Questions on Income that is not taxed
Posted 3 October 2019
Exempt or non-taxable income refers to certain types of income, which is not subject to income tax.
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How to Change/Verify Your Bank Details at SARS
Posted 22 October 2018
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:
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- in person at a SARS branch (SARS still prefers this way)
- via eFiling (Go to Maintain Taxpayer Registered Particulars Menu) Note, you will still need t...
Tax Breaks For All
Posted 31 July 2018
Primary, secondary, and tertiary rebates – depending on your age. A rebate is a set amount that SARS whacks off your total tax liability and basically represents the amount excluded by the minimum threshold to pay tax.
Primary rebate is for those under 65 years of age (on the last day of the tax year), the secondary rebate applies to those between 65 and 75 years old, and the tertiary rebate is added for those over 75 years old...Read more →
10 Tips to Pay Less Tax
Posted 25 April 2018
These tips are part of TaxTim's personalised recommendation tool called the Tax Health Score. Once you file your tax return with TaxTim, we analyze it and produce your own unique Tax Health Score which recommends how you can optimize deductions, pay less tax and maximize your potential refund in the future.
The tips below cover all possible recommendations and may not be applicable to your individual tax situation. The only way to know which ones apply to you is to use TaxTim to complete and submit your tax return....Read more →
Posted 22 February 2017
Are donations to political parties’ tax deductible?
They are deductible if the political party is a registered Public Benefit Organisation/Not-For-Profit and is registered with SARS.
Are church donations deductible?
The church should give you a receipt with a PBO/NPO/NPC number, if they don't have a number then you cannot claim the deduction. The number needs to start with a 9. It should be either 9 or 10 digits.
Foreign gift in the form of donation OR Donation from overseas OR Informing SARS of inheritance OR Donations received from overseas...Read more →
10 Ways to Spend Your Tax Refund
Posted 8 September 2016
It’s tax season, and one of the most compelling reasons to file a tax return (besides the fact that it’s the law, of course) is the chance that you’ve overpaid the taxman and that you’ll hear that sweet SMS sound of funds deposited into your bank account from SARS. Of course the best part about a tax refund is that it’s likely you hadn’t budgeted on the extra cash, and so you’re able to spend it as you please. Whether you choose to do so sensibly or splurge a little, we’ve rounded up some ideas on how to spend or invest your tax refund.Read more →
How is Commission Taxed? 3 Ways Your Company Taxes Commission
Posted 14 April 2016
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...
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4 Common Provisional Tax Penalties - And How to Avoid Them
Posted 29 February 2016
Seasoned provisional taxpayers – those people who earn income from sources other than, or in addition to a regular ol' salary or traditional payment from an employer - are all too familiar with the process of estimating taxable income and submitting provisional tax returns. Not once - but twice a year!
Yes, it's a bit painful (although TaxTim makes it super easy) but entirely necessary if you don't want to be lumped with penalties from SARS...
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The Ins and Outs of Donations Tax
Posted 17 February 2016
Have you been the lucky recipient of a gift or donation from a generous family member of 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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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. ...Read more →
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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Do I earn enough to have to pay tax?
Posted 26 March 2012
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? These questions are common and usually include other sources of income such as interest from a bank account. If these earnings don't extend above the tax threshold then why disclose them and pay tax? Unfortunately while you may not have to pay tax on the income, you will certainly have to disclose it to SARS. Let’s assume you earn a salary of R200 000 a year and hav...Read more →
"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...Read more →