Hi Tim I'm a Freelance Artist, by profession, I mainly get paid through PayPal as most of my client/commissioners are overseas. I bring in on an average month between R8000-R9000. FNB charges a small fee and VAT get's charged on the money I get. I wondering about how I pay the tax on this money and how much I am expected to pay. Thanks
You would need to register as a provisional taxpayer and pay tax to SARS in two (optionally three) chunks per year. See here for all the details: What is Provisional Tax? How and when? This is because you are not a full time salaried employee, but instead earn your own income and must therefor pay tax manually. You may deduct from this income all your business related expenses to arrive at a reduced taxable amount which will be taxed according to the SARS tax rates 2014.
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