Tax Exemption for Foreign Employment Income : What You Need to Know

  Written by Vee   Posted 17 March 2022

If you think earning an income from a global source isn’t taxable on home soil, I’m afraid I have some bad news. Whether you’re earning Dollars, Euros or Yen, as a South African, it’s more than likely you’ll have to pay tax on this income. This is because South Africa’s taxation system works on a residence-based tax system meaning we’re taxed on worldwide income.

There is, however, some good news!

Section 10 of the Income Tax Act offers a list of conditions where foreign remuneration earned (up to R1,25m) for services rendered outside of South Africa borders will be exempt from income tax.

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Why do I not have a make payment button on my additional ITA34?

  Written by Marc   Posted 16 March 2022

If your ITA34 does not have a Make Payment button, then this means that the particular ITA34 you are looking at has a R0 assessment. Rather log back into eFiling and select the following:

• Returns;
• Returns History;
• Select the year you wish to make payment for;
• Select the second to last ITA34, so the one before the current one you are looking at (often the original assessment); and
• There should be a Make Payment Button on there for you to m...

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How do I upgrade my package with TaxTim?

  Written by Marc   Posted 16 March 2022

In order to upgrade between the LITE, SMART and ULTRA packages please follow these simple steps:

• Click MY RETURNS at the top of your screen when logged into your TaxTim Profile;
• Select the return you wish to upgrade your package for;
• Look on the left hand side of your screen; above Tim’s head you will see the word Sections;
• Click Sections and a drop down will appear; this will allow you to click Add Section;
• Select the sections you ...

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How do I add a section with TaxTim?

  Written by Marc   Posted 16 March 2022

In order to add a section when completing your chat with Tim please follow these simple steps:

• Click the Sections Tab on the left side of your screen, just above Tim’s face;
• Click Add Section; and
• Select the Section you wish to add from the list of suggested tax return sections

You will now be able to go back to your chat with Tim and complete your return for TaxTim to submit to SARS.

Tax on Lump Sum payment - Provident Fund

  Written by Nicci   Posted 16 March 2022

Hi,

A friend received a lump sum payment from her provident fund to pay for a family members medical bills. Is she able to claim back some of the tax paid over to SARS for the additional medical expenses? She had previously received a lump sum payment on retrenchment, so this is the second lump sum recieved from the fund. She has no other income.

Partnership in rental property - how to declare on my tax return?

  Written by Nicci   Posted 16 March 2022

If I own 50% of a property do I only put my portion of the rental income and expenses in?

Do I need to register for VAT if my income is all export related but my turnover exceeds R1m?

  Written by Nicci   Posted 16 March 2022

I am a provisional taxpayer in South Africa working solely for a foreign company (my services are all export related) with my turnover exceeding R1 million a year. I know that exports are zero-rated for VAT. Do I need to register as a VAT vendor, even though my income would not be subject to VAT?

Should source code 3699 reflect on your cost to company?

  Written by Nicci   Posted 16 March 2022

Does source code 3699 include all employment income, so it should it reflect your cost to company?

Do I need to wait for SARS confirmation for provisional tax return?

  Written by Nicci   Posted 16 March 2022

I have successfully filed my provisional tax return for 2022 and would like to know if I need to wait for SARS to approve the amount or do I go ahead and pay the amount stated through the eFiling site?

How do I make changes to my return?

  Written by Marc   Posted 15 March 2022

If you wish to make changes to the information on your TaxTim return then simply follow these easy steps:

• Click MY RETURNS on the top of your TaxTim login page;
• Click the return you wish to make changes to;
• Navigate to the Sections button which is located above Tim’s head in the chat you are having;
• Click Sections and the different parts of the tax return will appear;
• Click the section you wish to make a change to and then you will ...

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Is CGT applicable to Share Option vesting?

  Written by Nicci   Posted 15 March 2022

I've received 1000 share options that vest over 4 years at 25% per year. After the initial vesting on 1 Jan 2022 I have the right to exercise the options, it's likely I will only exercise the options at company exit a few years later. When will I be liable for CGT?

Can I claim against the use of my vehicle if the only code on my IRP5 is 3703?

  Written by Nicci   Posted 15 March 2022

I have used my vehicle for official travel - there is only code 3703 on my IRP5. Can I claim travel expenses in my return?

Money owed to SARS

  Written by Nicci   Posted 15 March 2022

I want to understand why I am owing SARS and how to pay the money to SARS?

What do I do if a question doesn't apply to me?

  Written by Marc   Posted 15 March 2022

Question: What do I click if a TaxTim question isn't relevent or does not apply to me?

Answer: There should be an option to click "doesn't apply", by clicking this it will automatically mark the question as R0 and show SARS that this isn't relevent to you.

I have a new email address, how do I transfer my profile?

  Written by Evan   Posted 15 March 2022

1. Login to your TaxTim profile.
2. Click on My Profile in the top menu bar.
3. Update your old email address to the new one you wish for us to contact you on.
4. Click the Update button.

All correspondence from TaxTim will now be sent to this new email address.
Your details at SARS will NOT be updated by this action.

Should you wish to do this too, you can call the SARS call centre at 0800 007 277 or you can log in...

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How do I deduct rental expenses?

  Written by Nicci   Posted 13 March 2022

When less than 100% of your property is being rented out, then you may only deduct a portion of your rental related expenses. This portion (i.e. percentage) is calculated by dividing the floor area of the space being rented, by the total floor area of the property (including garages and out buildings).

Here’s an example:

You have a 500 square metre, three-bedroom...

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Tax for a Personal Service Provider

  Written by Nicci   Posted 10 March 2022

Hi Tax Tim,

I am a Personal Service Provider (PSP). My client withholds PAYE at 28% in the name of the PSP i.e in my company's name and not me personally, as an individual taxpayer. This concerns me because the PAYE tax credits sit in my company's name, but from an individual perspective I have not paid any tax on the salary I withdraw from my company.

The PAYE refund, if any, will be paid into my company. How do I show the tax on my salary in my individual tax return? If I...

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Tax and Marriage go together, like a horse and carriage

  Written by Nicci   Posted 7 March 2022

When planning your wedding, it’s highly unlikely that anything related to tax features on your agenda. However, when saying “I do” it’s very important to understand the tax laws associated with marriage because SARS treats income differently according to the type of marriage contract that binds you and your spouse.

Marriage in Community of Property

If you marry without an antenuptial contract, you’ll by default be married in community of property...

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Foreign Income Tax for SA Residents

  Written by Patrick   Posted 3 March 2022



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The Guide to Small Business Tax

  Written by Patrick   Posted 3 March 2022



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The Company Tax Guide

  Written by Patrick   Posted 3 March 2022



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Finance Minister Enoch Godongwana's budget speech 2022 Overview

  Written by Patrick   Posted 24 February 2022

Finance Minister, Enoch Godongwana, delivered his maiden budget speech on 23 February.

The speech started by indicating that there are still high risks to the economy, which is slowly recovering from the Covid-19 pandemic. The budget reasserts the commitment made in the 2021 MTBPS to set the economy’s course towards growth and fiscal sustainability.

It was announced that employment support will also be extended to the most vulnerable, service delivery shortcomings would ...

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Budget 2022: Some Hope For Consumers

  Written by Nicci   Posted 23 February 2022

All eyes were on Finance Minister, Enoch Godongwana, when he delivered his maiden budget speech to South Africans yesterday. Taxpayers breathed a sigh of relief when he announced that there would be no major tax hikes. This was welcome news for South Africans who are dealing with the effects of Covid-19, rising inflation, interest rate hikes and  significant fuel price increases. 'Now is not the time to increase taxes' - thank you Mr Minister, we couldn't agree with you more!

The minister announced that SARS had brought in R182 billion more in taxes than had been predicted last year in February...

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Retrenched? Here’s how you will be taxed

  Written by Patrick   Posted 23 February 2022

In 2020, about 2.2 million jobs were lost in South Africa and in 2021, that number is expected to double as a result of Covid-19. With that, we have found that there are many questions surrounding the subject of taxes and severance packages. Here’s everything you need to know.

The Basic Conditions of Employment Act states that your severance pay should include at least one week’s worth of remuneration for every full year of work. Your severance package may consist of your ...

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Your Retirement Fund: Understanding the 2022 Tax Changes

  Written by Patrick   Posted 14 February 2022

Have you found yourself with a huge tax bill at the end of the tax year, and no money to pay it? SARS is making your life easier by changing the way it does tax deductions on your retirement fund from 1 March 2022.

Avoiding Tax Debt

You may receive several annuities or pensions from your previous employer or pension fund. In the past, your fund used to look at each income source separately when working out your tax.

The separate amounts you received probably fell bel...

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