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Alimah says: 19 April 2016 at 9:30 Hi. I'd like to know how online generated income is taxed. I am a South African resident currently in the process of generating income in foreign currencies ( US dollar and the Euro). I do not want to break any tax laws, please assist me. |
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TaxTim says: 19 April 2016 at 9:38 Are you self-employed? |
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Alimah says: 19 April 2016 at 9:54 Yes, I do not have any other form of income. However, I have not generated any major earnings online as yet, I want to have a complete understanding of the tax implications first. |
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TaxTim says: 19 April 2016 at 10:08 The tax threshold is currently R75,000 so if you earn a net profit below this amount for the tax year (i.e. 1 March 2016- 28 Feb 2017) you won't have to pay any tax. If your earnings are above this amount, you should register as a Provisional Tax payer and pay tax twice a year on your profits. You would also need to file a tax return after year end. You would need to declare the Rand equivalent amount for your income and business related expenses in the section "Business, trade and professional income". Remember you can deduct any business related expenses (e.g. internet, telephone, office rent etc) from your income to reduce your taxable income and ultimate tax liability. If expenses relate to personal and business use, you would need to work out the % relating to business use only and claim accordingly. If you work from home, you may also be able to claim a portion of your home office expenses Please Register for TaxTim and let us assist you with your provisional tax returns and tax return filings. |
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Alimah says: 19 April 2016 at 10:11 This has been very helpful, I will be sure to register with you for further assistance. Much appreciated. |
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TaxTim says: 19 April 2016 at 12:13 Thanks for the positive feedback :) |
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