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.
Get SARS Tax Dates and Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.