Written by Neo
Posted 13 November 2019
I need some advice regarding how to structure my taxes and what ways I will be able to reduce my tax exposure through deductions, registering as a private Pty vs Sole proprietorship etc... I have a salaried job and am starting up a side business working from home as a web developer. I am also considering to start renting out our flatlet via Airbnb. The total income I am looking at includes (per month): 1) Salary: R70000 2) Airbnb: R3000 (which is a bit hard to estimate right now till we have built a track record, but this is assuming an average occupancy of 13%) 3) Web development: R5000...
Written by Neo
Posted 11 November 2019
We often receive questions from taxpayers as to how to structure their salary most efficiently for tax purposes. Unfortunately, the reality is that the days of employees gaining a tax advantage It’s that time of the year again and employers are issuing their employees IRP5s for the tax year. An IRP5 is a tax certificate which shows the total employment income that you earned for the tax year, the total employment related deductions that were taken from your income and paid over to either a retirement fund (pension, provident or retirement annuity fund) or a medical aid and the total tax (PAYE, UIF and SDL) that you paid... I previously received an opportunity to invest in shares through my company. I invested a portion of my income every month and every six months shares were purchased on my behalf at a 14% discount. The shares are US based and tax was deducted locally off my payslip. I would now like to sell off my shares, but I don't fully understand how I'd be liable for tax. We were able to sell them as soon as we had them. They were part of an ESPP (Employee Stock Purchase Plan) and were purchased by deduction from salary and taxed (nothing given out-right). On the platform, they do seem to be classified as short/long term but I think this is geared up for US rules of capital gains.... We receive many queries from confused taxpayers who are disappointed to see their tax refunds are smaller than the refund received last year. Taxpayers should breathe a sigh of relief as a much lower than expected R36bn in increased taxes was announced by the once-off Minister of Finance. The biggest news amongst the increases was the VAT rise of 1%. For the first time in 25 years, all South Africans will see most goods and services become a little bit more expensive thanks to the Value Added Tax rise. Although controversial, a VAT rise was much needed and will bring in almost R23... Kindly advice me on tax deductions regarding RAF maximum amount that ca be SARS say they upgraded their system and have now seen i did not file a tax return in 2009,2010 and have fined me for each year. Both years i was under the threshold but they are insisting i file these returns. I do not have the IRP5 anymore and the company no longer exists. They advised that I open the return on efiling and can then submit as it should have all the info, I have done this but there is no earning/medical aid information etc.
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Tax on shares
Written by Neo
Posted 19 September 2019
I received a once-off payment for shares in November 2018. I then opted to pay tax on the shares before the payments was made to me. Therefore the tax was already deducted before any monies were paid to me. I am now uncertain how to enter this in my 2019 tax return. Can you please advise %u2013 do I need to submit this income in my 2019 tax return and if I must, what figures must I submit in terms of the share payment made to me in this tax year?
Corrected IRP5
Written by Neo
Posted 11 September 2019
My employer had to fix the tax period on my IRP5 and it has now been resubmitted to SARS. I would like to know if I am able to get TaxTim to reload this new IRP5 document for me? Also, please note that there are some amount changes as well which were made and this needs to reflect before I can agree to submit the final details. Is there perhaps a process whereby TaxTim can import the IRP5 before commencing to the submission state?
Earnings of a teacher and tax
Written by Neo
Posted 5 June 2019
I would like to find out if I should submit a tax return as a teacher that earns R300 000 per annum. Would this be required of me?
Tax allocation
Written by Neo
Posted 21 May 2019
Where does my tax money go to?
Two incomes and tax calculations
Written by Neo
Posted 20 May 2019
I am 51 years old and I receive a monthly taxable salary and a monthly pension. How do I calculate my tax on both incomes?
Backpay and bonus taxed in same way?
Written by Neo
Posted 17 May 2019
Can a bonus and an arbitration award backpay be added on one source code?
The employer added the arbitration award backpay for 2014 to 2017 august under one source code of bonus. What is the impact are the two taxed in the same way?
Top Questions on IRP5s
Written by Neo
Posted 9 May 2019
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Leave days and tax
Written by Neo
Posted 27 March 2019
How are the leave days calculated when an employee resigns from a company?
Business travel from home office
Written by Neo
Posted 12 March 2019
I work for a multi-national company and I am home based. I would like to find out, when I travel into the office for meetings, can I claim that mileage as business travel? Also, just for interest sake, would it be different if I was a salary earner and I did receive a travel allowance?
Tax when selling the shares
Written by Neo
Posted 17 February 2019
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Relocation expenses
Written by Neo
Posted 11 February 2019
I got a new job and the new company is paying me one month's salary as relocation allowance. I understand that this is taxed, but can I have any tax deductions if I can prove actual relocation expenses?
I still have source code 3697 and 3698 on my IRP5 for 2018
Written by Marc
Posted 23 October 2018
Question: Where can I input source code 3697 or 3698 from my IRP5? I do not see a place for this anywhere?
Answer: Those codes are no longer applicable for 2018 IRP5s, if you have 3697 and 3698, add them together and include that total amount for source code 3699.
Why have I received a smaller tax refund from SARS this year?
Written by Marc
Posted 23 July 2018
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What to expect after submitting your tax return to SARS
Written by Marc
Posted 23 June 2018
As soon as tax season opens in July, many taxpayers rush to submit their ITR12 tax returns as early as possible, eagerly hoping for a nice refund.
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Budget Speech: VAT rises by 1%, predictions were correct!
Written by Neo
Posted 21 February 2018
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Bitcoin and Tax
Written by Neo
Posted 8 January 2018
Are the earnings from Bitcoin taxable?
No time to go to SARS
Written by Neo
Posted 20 July 2017
I cannot get the time to go to SARS, is there a service that you
offer to get my SARS eFilling account active and then also submitting my IRP5s?
SARS does not want to pay me the money it owes me.
Written by Neo
Posted 18 July 2017
Good day, SARS owes me money, had to go through the ombudsman to prove this, successfully did so however, SARS now requires that I prove that I actually did pay an amount I owed 2 years back before they refund me. My question is: is that even legally allowed/required of me or is it foul play from SARS? Thank you for your assistance
Difference between provident fund and retirement annuity?
Written by Neo
Posted 18 July 2017
There is no code 4006 on my IRP5, but I pay into a provident fund via my employer. There is an amount with code 4003/4473 (the same amount). Do I need to enter this amount anywhere?
This query relates to question 6806 "Do you have a %nextpass% Retirement Annuity Fund that you want to enter?" in the Retirement Annuity section.
RAF
Written by Neo
Posted 18 July 2017
deducted.
If a person is on Salary range of 280 000 to 300 000 p.a.
The employer and contribute each 7.5 % of the basic salary p.a to pension
The employee currently contribute R405 per month towards retirement
annuity fund per month
The question is how much can be deducted or get refunded from SARS annual
or how much can contributed to RAF to ensure that he/ she is not paying too...
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Old 2009/2010 efiling returns
Written by Neo
Posted 17 July 2017
How do i resolve this now as both returns are now sitting open on efiling and i am getting fined R250 per month now that i do not resubmit....
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Penalty for non-submission
Written by Alicia
Posted 13 July 2017
I received a notification from SARS indicating that I have admin penalties
indicating that ITS outstanding tax returns for 2008, 2009 and 2010.
What does this mean and can you help rectify?
Submit a return with medical aid claims on
Written by Alicia
Posted 12 July 2017
I wanted to enquire approximately how much it would cost for me to do my Tax Returns?
Just an estimation.
It would be just for me. Straight forward Gross Salary plus medical aid. No other claims such as commission, mileage, petrol etc.
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