Written by Patrick
Posted 1 April 2021
Do you receive a travel allowance from your employer because your job used to entail significant travel? As the Covid-19 pandemic hit and lockdown restrictions have curbed travel, you might be wondering how this will affect your taxes. Here’s what you need to know to avoid owing the taxman, even more, this tax season.
Under normal circumstances, your employer would only offer you a travel allowance if your job requi...
Written by Patrick
Posted 15 March 2021
“A society grows great when old men plant trees whose shade they know they shall never sit in.” - ANON
More than 70% of South Africans don’t have a valid will. The reason for this, we believe, is because people are not educated on why wills are so important and how you can use them to protect your family and save tax.
By drafting a will, you are planting a tree in which shade your family can sit. Let me explain…
Written by Neo
Posted 10 March 2021
We are seeing many cases where taxpayers submit their documents to SARS, wait 21 working days (sometimes longer) only to receive a second letter on eFiling which requests the exact same documents again.
The letter we are referring to here is the generic SARS document request which looks like the below:
The South African Revenue Service (SARS) thanks you for submitting the revised income tax return for the 2018 tax period.
The revised information still does not match the information in the possession of the SARS and/or the income tax return has been identified for verification in terms of the Tax Administration Act....
Written by Evan
Posted 9 March 2021
Working days (or business days) commonly refer to the days that most South Africans are at work, namely Monday to Friday.
Working days excludes government-recognised public holidays such as New Years Day, Human Rights Day, Good Friday, etc.
NOTE: SARS has its own definition of working days, which includes a holiday from 15 December to 15 January for all of their staff. If you are waiting for any assessments or dispute outcomes from them, please take into account the extra mont...
Written by Nicci
Posted 8 March 2021
Companies issue stock options (also called share options) to key employees in order to attract and retain talent.
A stock option is different from a share – a stock option is the right to acquire a share at a specific date in the future at a set price.
For example, when John joins Company A, he is granted 5000 stock options at a price of R55 per stock option. Assume that Company A’s share price rises to R75, he will make a profit of R20 per option when he is allowe...
Written by Patrick
Posted 25 February 2021
The Minister delivered some welcome news to South Africans yesterday when he announced that plans to hike taxes by R40 billion rand over the next four years, have been scrapped. This is largely attributed to a surge in tax revenue from mines, as well as a faster than expected recovery in VAT collections towards the end of last year.
He went on further to say, that there would be no significant tax increases at all in the year ahead. Contrary to speculation, the much-anticipated Covid-19 vaccination programme will not be funded by tax hikes...
Written by Neo
Posted 22 February 2021
What is an IRP5?
An IRP5 is the employee's tax certificate that is issued to him/her at the end of each tax year detailing all employer/employee related incomes, deductions, and related taxes. The employee uses it specifically to complete his/her income tax return for a specific year.
Do I need an IRP5?
Yes, you do if you were employed during the tax year.
Can I submit a return without an IRP5? OR Am I able to submit returns without my IRP5? OR Are you able to submit without the IRP5?...
Written by Neo
Posted 10 February 2021
Hi TaxTim, please can I ask about emigration and Retirement Annuities (RA)?
The new South African tax regulation, effective March 1, regarding emigrants' RAs being frozen for 3 years after financially emigrating:
1. I was told the start of the 3 years is not from date of financially emigrating, but rather the declaration date of non-tax resident status, is this correct?
2. If so, how does one declare oneself a non-tax resident?
3. I may have already declared mysel...
Written by John
Posted 9 February 2021
Answer Tim's questions above to see if you have what it takes to work with the TaxTim team!
Written by Neo
Posted 9 February 2021
1. Estimate your taxable income for the whole tax year
Remember that both your first and second provisional return (IRP6) must reflect an estimate of your taxable income for the full 12 months of the tax year.
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Written by Neo
Posted 4 February 2021
In a bid to meet its tax revenue quotas, SARS began introducing changes to the expatriate laws which took effect on 1 March 2020, which saw the launch of the Foreign Employment Unit.
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Written by Elani
Posted 28 January 2021
Net income is the actual profit after the deduction of expenses and allowable deductions.
Please refer to the "Expenses & Deductions" section of our Small Business Guide for more information regarding the expenses you may deduct.
Written by Evan
Posted 28 January 2021
In general terms, income is the money or a similar benefit you earned during the tax year.
In tax terms, income is the total gross income you earned during the tax year less "exempt income".
Written by Elani
Posted 28 January 2021
For SA residents: "Gross income" means the total amount of worldwide income that you earned during the tax year, excluding income that is of a capital nature.
Note that "income" is also money that is owed to you for work you performed, even if not paid to you yet - for example payment for a service that you performed.
Non SA resident: "Gross ...
Written by Patrick
Posted 24 January 2021
As early as July 2017, Adobe announced that Flash Player would be discontinued by 31 December 2020 and that Flash Player would block its Flash content by 12 January 2021
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Written by Patrick
Posted 24 January 2021
As many countries around the world are already in the process of distributing the Covid-19 vaccine, the National Treasury of South Africa is proposing the possibility
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Written by Neo
Posted 20 January 2021
As part of my package I receive the benefit of a fuel card and car allowance (but I do not do any business travel). However, on my tax return for 2020 I had to pay almost R9k because of this benefit. I had thought that our Human Resource Department would have made adjustments to my PAYE so that I would be paying 100% of the applicable tax so that I do not have anything to pay when I do my tax return once a year. Our Human Resource person said that he was not able to set the PAYE so that I could in future pay 100% of the fuel and car allowance benefit, but was limited to set it at 80%. ...
Written by Vee
Posted 18 January 2021
For those fortunate enough to receive bonus payments as part of your remuneration, you’ll understand the
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Written by John
Posted 2 January 2021
Taxable income is the amount on which tax will be calculated on.
Taxable income = total income (gross income - exempt income) - allowable deductions + taxable capital gains.
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Written by Nicci
Posted 26 October 2020
It is a type of savings account offered by financial institutions that invests your money in a combination of financial products such as unit trusts, bank savings accounts, fixed deposits, bonds, etc.
The difference between this and other savings or investment accounts is that all returns, i.e. the interest, dividends or capital gains earned, will be tax-free in your hands. This means that you’re not liable to pay tax on the growth of your investment, nor if you decide to withdraw from your account....
Written by Neo
Posted 14 October 2020
There is a new scam going around this tax season, SARS has made us aware of it and we would like to make sure you know about it too.
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Written by Neo
Posted 7 October 2020
When you are in the process of selecting a medical aid, the question of adding gap cover to your plan is likely to come up. More than 1 million South African families understand the importance of gap cover, which is why they have opted in. But should you? First things first…
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Written by Neo
Posted 3 October 2020
We are seeing many cases where taxpayers submit their documents to SARS, wait 21 working days (sometimes longer) only to receive a second letter on eFiling which requests the exact same documents again.
Read more →
Written by Nicci
Posted 9 August 2020
This is a "Confirmation of Diagnosis of Disability" form for an individual taxpayer. A person who has a disability, or whose spouse or child has a disability, needs to have their condition confirmed by a registered medical professional. This is done by way of the ITR-DD form which must be completed by both the individual and the medical practitioner. Once the taxpayer has the ITR-DD, they can benefit from an additional medical expenses credit when they submit their ITR12.
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Written by Elani
Posted 6 August 2020
Do Your Tax Return Easily