Written by Evan
Updated 27 June 2024
In order to complete the Medical section of your annual tax return, you will need a tax certificate from your medical scheme (if you contributed to a medical scheme that is!).
This certificate details exactly how much was paid to the medical aid for yourself and your dependents over the course of the tax year (1 March to end Feb). It also details how much money you paid for other medical expenses, such as medicines and doctors expenses, which you claimed for, but your medical aid did NOT cover...
Written by Nicci
Updated 27 June 2024
We receive many questions from taxpayers who are confused as to why they receive an IRP5/IT3a for retirement fund withdrawals or transfers and how to report this (if at all) in their tax return. If this applies to you, read on and let us clarify the issue for you.
IRP5/IT3a for retirement fund withdrawal, resignation or transfer
If you withdraw money or retire from your retirement fund and receive a lumpsum, the fund will have to apply for a tax directive for you and should also issue you an IRP5/IT3a...
Written by Nicci
Updated 27 June 2024
COMPANY LETTERHEAD
Date
Employee's Full Name
Address
To Whom It May Concern,
Subject: Permission to use personal items for work purposes
This letter serves to confirm that _______________________________(Name of employee), ___________________________(ID number) who is employed by our firm ___________________( company name) in the capacity of__________________________(Position) has permission to use the following personal items for work purposes:
Item: 1...
Written by Nicci
Updated 27 June 2024
We’re aware that sometimes taxpayers may not understand all of the deductions which appear on the tax return. And because of this, expenses that could have been deducted get missed. To help make things easier for you, we’ve explained some of these less understood tax deductions which may be overlooked by taxpayers. They all appear in the Other Deductions section of the ITR12.
The s11(nA) and s11(nB)
If an employee is in breach of an agreement with their employer, they may be asked to pay back a benefit they received from them e.g bonus, maternity leave benefit, bursary, sign on bonus etc. ...
Written by Nicci
Updated 27 June 2024
COMPANY LETTERHEAD
Date
Employee's Full Name
Address
To Whom It May Concern,
Subject: Permission to work from home
This letter serves to confirm that _______________________________ (Name of employee), _____________________ (ID number) who is employed by our firm ___________________ (Company name) in the capacity of __________________________ (Position) has permission to work from h...
Written by Nicci
Updated 18 June 2024
Filing a tax return for the first time can be a daunting task. To get you started, we’ve gone back to the basics
Read more →
Written by Nicci
Updated 18 June 2024
SARS have recently become a lot stricter about levying administrative penalties. These are penalties for missing the deadline to submit your tax return. You can read about these recent changes in the law here.
If you have outstanding/un-filed tax returns from prior years, chances are high that SARS will have slapped on administrative penalties.
You may have recentl...
Written by Alicia
Posted 13 June 2024
Written by Alicia
Posted 12 June 2024
Written by Alicia
Posted 12 June 2024
I bought furniture for R 172 000 back in 2018 for my rental property. This was bought through the developer as part of a rental pool offering. Rental pool contract stating furniture costs, e-mail clarifications and proof of payment for this is in my possession but not the actual receipts or individual pricing for the items. According to the TaxTim depreciation calculator, I can claim around R 28 600 in 2022 tax year. My question is, can I claim this with the documentation in my possession and ca...
Written by Alicia
Updated 5 June 2024
Written by Nicci
Posted 4 June 2024
The 2024 filing season opens this year on Monday, 15 July.
Tihs year, the tax season is even shorter than last year (and last year was shorter than the prior year!). This means that SARS are giving you less time to file your tax return.
Important Filing Deadlines
21 October 2024: salaried employees, who earn no other income (i.e non-provisional taxpayers)
20 January 2025: self-emplo...
Written by Alicia
Updated 28 May 2024
In previous years, it was relatively easy to add a company to your eFiling profile, whether it was an Organization or Tax Practitioner profile.
However, since early last year, SARS has changed the procedure. Now, to add a company to your profile, you need to add a registered representative. In order to do this, you must send a request to SARS along with the following documents each time you want to represent a new company:
Written by Nicci
Posted 27 May 2024
(endpreview)
| Bank Name | Universal Branch Code |
| ABN AMRO BANK | 740000 |
| ABSA | 632005 |
| ALBARAKA BANK | 800000 |
| BANK OF ATHENS | 410105 |
| CAPITEC BANK | 470010 |
| CITIBANK | 350005 |
| FNB | 25065... |
Written by Nicci
Updated 27 May 2024
Received your IRP5 or IT3(a) but unsure what it all means? Here’s a quick introduction to help you understand this tax document.
Personal details:Your IRP5 starts with your personal details. While these details won’t override what SARS has on record, it’s important to check them and update any outdated information with your employer.
Income:Your ...
Written by Alicia
Posted 24 May 2024
In order to use TaxTim and import your tax certificates directly from your SARS eFiling profile, you will need to be able to login to your SARS profile.
If you do not remember your eFiling username and password, here is a short guide to request it:
1. Go to SARS eFiling and click "Forgot Username".
Written by Alicia
Posted 23 May 2024
I know that the interest on a bond is tax deductible in the case of an Airbnb.
I was wondering if the rental of a property is also tax deductible if you use the arbitrage Airbnb method, i.e. subletting a fixed-term rental as an Airbnb?
Another question, what if the property is not my own, I am renting it from someone and subletting it. Is the rental expense that I pay, a deductible expense of operating the Airbnb business?
I know you have tiers of packages. How much do you charge to do the income tax of individuals that include the rental income? ...
Written by Alicia
Updated 23 May 2024
Issue:
When you submit your tax return, SARS rejects it with a message which states that a Tax Directive was issued by SARS, but no Lump Sum amount is declared in the return.
This means that SARS has a Tax Directive on record for you and they are expecting to see the related lumpsum IRP5 with the matching Tax Directive in your tax return. If you have not included this IRP5, SARS won’t be able to finalise your return and issue you an assessment for the ta...
Written by Alicia
Posted 21 May 2024
Written by Alicia
Posted 21 May 2024
Written by Alicia
Posted 16 May 2024
Written by Alicia
Posted 16 May 2024
Written by Nicci
Updated 16 May 2024
What is the definition of tax threshold? Tax thresholds? SARS Threshold.
A Tax threshold is the lower limit of earnings at which tax needs to start being paid. So any income less than the current threshold, would not be taxed.
What is Turnover Tax?
Turnover Tax is a streamlined taxation system designed to simplify tax compliance for small businesses. It replaces several types of taxes—Income Tax, VAT, Provisional Tax, Capital Gains Tax, and Dividends Tax—with a single tax based on turnover...
Written by Vee
Updated 16 May 2024
Turnover Tax is a simplified tax system only available to sole proprietors, partnerships, companies, or close corporations with a “qualifying turnover” of less than R1m per year. These types of entities are called micro businesses.
As the name implies, Turnover Tax is a type of tax, which is calculated against the turnover of a business, as opposed to a percentage of profit (i.e. income less business expenses) as per usual business tax. This difference reduces the administ...
Written by Evan
Updated 15 May 2024
You are looking for a 10 digit number from SARS that starts with a 0, 1, 2, 3 or 9. Try any of the methods below to find it.
Ask your employer
Your employer may have registered you in the past. If this is the case, you would have been issued with a 10-digit tax reference number from SARS and you would have an IT150 Notification of registration that states your tax reference number.
Check your payslip...
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