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Can invoicing several clients constitute a salary and not trade?



Smiley says:
25 February 2016 at 15:39

I privately tutor pupils at their homes and invoice several clients for this service. One of them pays me a monthly salary (but pays nothing to SARS) based on monthly invoices and the rest I invoice by the hour. Can I declare all of this as a single salary and pay it with my ITR12 or do I need to register as a provisional taxpayer?

I changed from being employed (normal IRP5 scenario) to self-employed during the last financial year so I am not yet registered for provisional tax

TaxTim TaxTim says:
26 February 2016 at 10:12

You need to register as a provisional taxpayer
What is Provisional Tax? How and when?
Am I a Provisional taxpayer?

You need to pay tax twice a year and submit provisional tax returns. You would then also need to submit a Tax Return (ITR12) for the year and declare your total income and expenses within the "Local Business, Trade and Professional Income" section.

PleaseRegister for TaxTim and let us assist you to complete and submit your tax return to SARS.

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