Tax on money from PayPal?

  Written by Marc   Posted 20 September 2013

Hi Tim
I'm a Freelance Artist, by profession, I mainly get paid through PayPal as most of my client/commissioners are overseas. I bring in on an average month between R8000-R9000. FNB charges a small fee and VAT get's charged on the money I get.
I wondering about how I pay the tax on this money and how much I am expected to pay.
Thanks

Closing date for submission of IRP5 2013

  Written by Marc   Posted 19 September 2013

When is the closing date for submitting IRP5 forms?

Not sure how to pay tax on freelance incoming

  Written by Marc   Posted 12 September 2013

For previous tax years, I've always only had my salary as income.

Since January, I've been freelancing and have been receiving payments on a monthly basis.

When should I register as a provisional tax payer? How much do I have to contribute before next tax season? Can I do everything I need to do on SARS efiling?

When do I pay sars after submitting provisional tax?

  Written by Marc   Posted 12 September 2013

After submitting my provisional tax, when do I need to pay it? Does SARS send me a bill?

Are s6A medical rebates deductible from your provisional tax payable?

  Written by Marc   Posted 10 September 2013

When calculating your provisional payment, does s6A medical scheme credit qualify as a deduction from the final tax amount? i.e. can you deduct the primary-tertiary rebates as well as the medical?

Private practice queries

  Written by Marc   Posted 10 September 2013

I've started my own private practice
I was employed before that and was a registered "normal" tax payer and did my e-filing chop chop easy. I'd like to continue doing my own e-filing:

Do I have to register now as a different tax payer now that I'm working for myself?
And must I complete the form where it asks for my own income and will it automatically update then and ask if I had other expenses?

And what all can I keep as "business" expenses? (I rent an office and pay a receptionist as well)...

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There is nowhere to list my deductions as a self employed business owner

  Written by Marc   Posted 10 September 2013

I am filling out the tax return and despite having said Yes to being a provisional tax payer it is asking me questions relevant only to an employee, such as do I have a company car etc and keeps referring to my IRP5, which obviously I don't have, being self employed.

Has something gone wrong, am I filling in the wrong form? Where do I list my deductions, of which there are many?

Personal Service Provider

  Written by Marc   Posted 8 September 2013

Hi Tim

1. I am starting a company and it will be a Personal service Provider. I know tax has to be withheld at 28% by my client. What I don't understand is whether the 28% is a flat rate or does the tax payable get recalculated when I submit my ITR12?

e.g.
Say I earn 20000 a month X 28 % tax = 5600 . Tax payed for the year = R 67200.
However if I was taxed as a regular employee my tax would have been = R 37,359.75

Will SARS pay me back the difference?
...

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Incorporated versus sole prop for a new business

  Written by Marc   Posted 4 September 2013

Hi Tim. I am about to embark on a new venture and start up my own business. We are bound by various rules and regulations as per the HPCSA and are only able to practice in an incorporated or solus practice. I am feeling very unsure as to which is the best option tax wise? The gross monthly income of the practice is expected to start off at and vary between R30 000 and R50 000 per month. I will not have any partners or permanent employees. I work from home 50% of the time and am onsite (travellin...

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Working from SA, being paid in UK

  Written by Marc   Posted 4 September 2013

Living and Working in South Africa remotely to UK (IT).

Hi Tim

I lived in UK for 5 years and returned to SA in 2010. I have dual nationality (German and South African).

I have been working in SA for a local company since 2010 earning rands. I have now been approached by my previous employer in UK to work for them again remotely from SA.

If I am paid by them in pounds into my UK bank account where will I pay tax and will have have to bring in all my earnings to SA or can I only bring in what I need?...

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I can't log in to SARS eFiling. Have lost my register details.

  Written by Marc   Posted 1 September 2013

How do I 're-register' as a provisional taxpayer online? My attempts to do so keep failing.

Which tax year do provisional tax payers use in August 2013 and how do they find out current values?

  Written by Marc   Posted 29 August 2013

As a provisional tax payer, surely one pays tax at the end of August 2013 on the basis of what has been earned from March 2013 to end August 2013 and this would be for the 2014 tax year. I also have difficulty finding out current It3 (c) values.

Oops - I under estimated first provisional tax payment what now?

  Written by Marc   Posted 28 August 2013

Hi Tim

I just filed and paid my IRP6 for the first payment just to realize that I might have under-estimated. Do I need to ask for a correction or can I rectify it with my second payment? Will there be any penalties?

Please let me know

How would I calculate my business provisional? I need to pay the first 6 months

  Written by Marc   Posted 28 August 2013

How would I calculate my business provisional, I need to pay the first 6 months on Friday 30 August.

Hourly rate "net of tax". What does this mean?

  Written by Marc   Posted 26 August 2013

I am starting a new position with a multi-national US based company, and my letter of appointment lists my hourly rate as "net of tax". I am not sure what this means, and was hoping you would be able to shed some light. How are my tax implications affected? Do I need to register for provisional tax?

When must I start paying tax with (Pty) Ltd and should my company be audited, if so when?

  Written by Marc   Posted 25 August 2013

Hi Tim,I've registered a (Pty) Ltd at CIPIC to act as a holding company to launch all my ideas through and operate from its bank account.I am confused however as to at what point I would have to pay tax with this business, i.e after how much income should I pay tax, at what amount?Also if and when my company would need to be audited, since it is a (Pty) Ltd but still pretty small?Thank you

How to deal with depreciation if moving from sole prop to CC.

  Written by Marc   Posted 23 August 2013

On 1 September 2013 I will cease as a sole proprietor and operate as a CC. How do I deal with depreciation eg a truck depreciated for 8 months with 40 left under the new CC.

Provisional tax Period 1 query

  Written by Marc   Posted 22 August 2013

Hi. I am a provisional tax payer for the first time due to earning rental income greater than the threshold. I received (& was taxed on) a bonus from my employer in June this year. How do I treat the bonus payment on the provisional tax return (period 1)?
If I include it as part of taxable income, my tax payable is inflated as bonuses are taxed differently from normal income. Please advise.

When is the deadline to submit a IRP 5 form?

  Written by Marc   Posted 19 August 2013

When is the deadline to submit a IRP 5 form?

Provisional Tax form completion for declaring Capital Gains

  Written by Marc   Posted 17 August 2013

I've cashed out my investment portfolio in May this year, in preparation for emigration, which will be completed in September this year. So I need to fill out a provisional tax declaration for capital gains, which comes to around R75k. I also haven't been in South Africa for the entire year - we moved overseas before the tax year started. So I haven't earned any income in South Africa to declare.

In the provisional tax income form, I fill out the R75k as "Gross/turn over", and have calculated the taxable income as R14k (R75k - R30k excluded amount for capital gains per year x 33.3% inclusion rate)....

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Supporting docs for sole prop tax return

  Written by Marc   Posted 10 August 2013

What documents should you submit to SARS when they request supporting documents for income tax returns as a Sole proprietor ?

How can SARS assess me as being R80,900 in arrears when I pay PAYE each month?

  Written by Marc   Posted 8 August 2013

SARS sent me an SMS saying I have R80,900 in tax arrears. Although I'm registered as a provisional taxpayer, I also paid PAYE through my employer of R39,010.89, and then an additional payment of R44,000.00 three months ago (as am married in C.O.P. and my wife has an annuity income). Can you advise me how to go about finding out why they say I owe so much? I'm freaked out as I simply can't pay.

Freelancer questions - Personal / business home office expense and wear & tear on a PC

  Written by Marc   Posted 5 August 2013

I am a freelancer & am registered as a provisional tax payer.

With regards to sharing rental costs, seeing that one of my rooms in my flat is used for my office, can I add detergents, coffee & tea to my list of expenses? If I had an office, these would come off as office expenses I'm sure. So seeing that I use the communal area of my house, i.e. toilet & kitchen, should the running expenses not be added to the amount I split between personal/business use?

With r...

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Freelancer - local and international - Needs to start keeping records for tax purposes

  Written by Marc   Posted 31 July 2013

I have been freelancing for local and international companies for a few months. I need to get my tax admin sorted out. I work from home and am on my husbands medical aid.

Where do I start and how do I maintain all my information that I need to? I'm happy to set up Excel docs to keep records. I'd like to know what I should be keeping records of,  where I can benefit from tax refunds, and what expenses I can set against the business. Do you have any templates I could use?

Als...

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Company tax submission dates?

  Written by Marc   Posted 28 July 2013

What are the tax return submission dates for a company with a year end of July?
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