Do I file a provisional return for a sole proprietor that I started in January?

  Written by Nicci   Posted 26 April 2024

I started as sole proprietor in January this year. Do I still need to file a Period 2 provisional tax return (IRP6) this February? The questions on Tax Tim are asking for the whole financial year (i.e from March last year until the end of February this year). Do I then just calculate the income and expenses for January and February of this year?

Trading Loss on IRP6

  Written by Nicci   Posted 26 April 2024

I registered a company in May 2023 and did not make a profit during the tax year up to 29 February 2024. I understand that I still need to file a provisional tax return with SARS, but it does not look like I can enter a negative figure in "Taxable Income" in the IRP6 form. Do I need to enter zero - as in there was no taxable income? In that case, does that mean that I cannot carry the loss forward to next year?

SARS eFiling profile hacking

  Written by Alicia   Posted 25 April 2024

SARS has reported a rise in eFiling profile hijacking, involving various methods such as altering security details, creating, or modifying taxpayer profiles, and executing SIM swaps.

The hijackers’ objectives are to redirect tax refunds to fraudulent bank accounts, which they are setting up for this purpose. There are certain banks which appear to feature more frequently.

If you are the victim of such profile hacking, you must immediately report this fraud via the

Read more →

How to deactivate two-factor verification on SARS eFiling

  Written by Nicci   Updated 25 April 2024

1. Please login to your SARS efiling profile 



2. Provide the One-Time Pin.



3. Select the "My profile" button on the left-hand side.

4. Select the Profile and Preference Setup on the drop-down.

...

Read more →

HELP: SARS issued me with a penalty for old tax returns

  Written by Nicci   Updated 24 April 2024

So, you’ve recently submitted your tax returns and shortly thereafter you receive a message from SARS informing you about admin penalties that have been charged against you. This has most probably come as a shock to you. We’ve been inundated with questions from taxpayers asking about these penalties which have been charged against them.  Below we’ve highlighted things you need to know as well as ways in which you can handle these penalties.

When are penalties charged?...

Read more →

How to request a Penalty Statement of Account

  Written by Alicia   Updated 24 April 2024

SARS have recently become a lot stricter with late filers and have changed their rules for administrative penalties. You can read more about these changes here.   There used to be some leeway for taxpayers who missed the deadline, but sadly these days are certainly over. 

If you received a notification of debt from...

Read more →

Is my Company a SBC or does it qualify for turnover tax?

  Written by Nicci   Posted 24 April 2024

Hi there, I would like to find out if I should be applying for turnover tax or small business tax, and if I would be considered a micro business. I have just completed my provisional tax return for 2024-01 on Tax Tim and the tax rate is 27%, which seems so high! This is my first tax return for my business, please help.

Tax on my travel allowance

  Written by Nicci   Posted 24 April 2024

My employer is satisfied that only 60% of my travel allowance will be for business purpose, do I only include the 60% in my monthly payslip for PAYE purposes or do I revert back to the 80/20 rule?

Donations to minors

  Written by Nicci   Posted 23 April 2024

If I donate R50 000 to each of my minor children (directly to their bank accounts) will R100 000 be tax deductible in my income tax return?

How are foreign dividends from an unlisted company treated?

  Written by Nicci   Posted 23 April 2024

Are dividends from foreign shares (not listed on any exchange) bought privately from a foreign business tax exempt?  If not, how would the dividend paid be treated for tax purposes?

What percentage tax does a person as a consultant pay?

  Written by Nicci   Posted 23 April 2024

I have been offered a job as a part time consultant. The company says that I must pay tax directly to SARS. How much tax will I have to pay directly to SARS?

I work two jobs - can I claim internet for both?

  Written by Nicci   Posted 23 April 2024

I work two jobs as an independent contractor in addition to my full-time salary. I use the same fibre internet connection for both these jobs which is debited on a monthly basis. Am I correct in saying I can only claim for it once on my tax return, and not twice for both jobs?

Then I also want to know if my TaxTim payment is deductible? 

How to update your contact details on eFiling

  Written by Alicia   Updated 22 April 2024

Please read the steps below to update your contact details on your SARS eFilng profile:

1. Go to www.sarsefiling.co.za

2. Log into your eFiling profile:

3. Click on

Read more →

Tax on Pension Annuities

  Written by Nicci   Updated 17 April 2024

Taking a closer look at why taxpayers may be required to pay in tax on pensions or annuities on assessment and how they can avoid a repetition of this each year.

Read more →

What is provisional tax? How and when do I pay it?

  Written by Evan   Updated 11 April 2024

What is provisional tax?

Provisional tax is paid by people who earn income other than a salary / traditional remuneration from an employer.
If you earn non-salary income, for example rental income from a property, interest income from investments or other income from a trade or small business you run, you will be a provisional taxpayer, even if you ALSO earn a salary. Some exceptions and thresholds do apply though, so

Read more →

How you can avoid load-shedding while reducing your tax bill

  Written by Patrick   Updated 11 April 2024

In his Budget Speech on 22 February 2023, Minister of Finance Enoch Godongwana announced the introduction of tax incentives intended to encourage the rapid uptake of renewable energy.

Government has developed the scheme in a bid to encourage households to invest in clean electricity generation capacity. The programme is intended to minimise demand on the national grid by reducing the number of households that are entirely reliant on Eskom for their power.

The incentives will r...

Read more →

Navigating Tax Consequences for Social Media Influencers

  Written by Alicia   Posted 10 April 2024

In today's digital age, social media influencers wield significant influence and often enjoy lucrative partnerships with brands. However, amidst the glitz and glam, it's crucial for influencers to be aware of their tax obligations. In this blog post, we'll explore the tax consequences that social media influencers need to consider in South Africa. 

Understanding Tax Obligations

As a social media influencer in South Africa, it's essential to recognize that...

Read more →

How to Change/Verify Your Bank Details at SARS

  Written by Marc   Updated 10 April 2024

SARS has recently issued a new guide with regards to updating your banking details with them. This was done in order to reduce the risk of refunds being paid into the wrong accounts and also to streamline the process, which has tended to be an onerous one in the past.

Change of bank details can be done:

• in person at a SARS branch (During the pandemic, it would be best to make a telephonic appointment with SARS and then send them your supporting documents, SARS will cont...

Read more →

Provisional Tax

  Written by Evan   Updated 10 April 2024

Provisional tax is not separate from income tax, but simply a mechanism to pay your taxes during the tax year instead of having a large amount owing to SARS on assessment when you submit your tax return (ITR12).

Think of provisional tax as an 'advance payment' of your taxes that are due to SARS. This is required because provisional taxpayers don't pay tax monthly to SARS via the PAYE system, like regular salaried employees do.<...

Read more →

Unpacking the Foreign Employment Income Exemption

  Written by Nicci   Updated 9 April 2024

This is the exemption is for employees that receives foreign employment income for services rendered outside of South Africa, provided that all the requirements are met.

Read more →

Top Questions on Income that is not taxed

  Written by Nicci   Updated 20 March 2024

Exempt or non-taxable income refers to certain types of income, which is not subject to income tax.

Read more →

Navigating around your Allan Gray tax certificate (IT3c)

  Written by Nicci   Updated 20 March 2024

1. This is the proceeds i.e  the value that your shares were sold for. This amount needs to be entered as proceeds in the  capital gains section of your tax return.

2. This is the base cost i.e the costs attached to the sale of your shares. This amount needs to be entered as the base cost in the  capital gains section of your tax return....

Read more →

How home office deduction impacts Capital Gains Tax

  Written by Nicci   Updated 19 March 2024

With “flexible” employment being the new buzzword, more and more people are working part or all of the week from an office in their home.

Read more →

Tax Free Savings Accounts: Everything You Need to Know

  Written by Vee   Updated 19 March 2024

As a nation, South Africa does rather poorly on the savings front. With the majority living near or below the breadline, there’s not much to save when you’re more concerned with just getting through the month. Our high levels of consumer-debt, combined with little in the way of personal savings, means we become financial burdens on the government in the long-run...

Read more →

Do You Need to Ring-Fence Your Business or Rental Losses for Tax?

  Written by Vee   Updated 19 March 2024

When pursuing a business activity, trade or renting out a property, you’re no doubt doing so to make some money, but the reality for self-starters

Read more →

Older posts →← Newer posts