Income from overseas

  Written by Nicci   Posted 10 April 2017

My wife does some occasional freelance work for a company overseas. As well as here in South Africa.
Her local freelance brings in about R3500 per month. She doesn't currently pay provisional tax as the amounts are too small. She's recently taken on some international freelance work that amounts to
about R10500 every second month or so. What are the tax implications of the international income?
Does she need to declare it and can she declare it as a donation?

How can I depreciate my small business equipment if I dont have invoices?

  Written by Nicci   Posted 9 April 2017

I have a mobile phone; laptop; tablet and home office furniture which I use for my small business. I bought them four years ago, but I've never depreciated them because this is my first year of business. Can I depreciate them now even if I don't have the invoices anymore? And, if I don't depreciate them can I just record it as a company asset? These IT equipment were bought second hand and some are old.

Capital gains tax or income tax - forex trading

  Written by Nicci   Posted 9 April 2017

What's the difference between capital gains tax and income tax? Which of the two does retail forex trading fall under?

Legal methods for reducing commission tax?

  Written by Nicci   Posted 7 April 2017

I work in IT and I get paid my normal salary every month and on occasion. I'm also involved with projects where I earn commission. I don't actually know how my commission is calculated, but I'd like to know how I can get more of my commission paid to me instead of being taxed so highly. My Minimal expenses are i.e. calls and some driving around but I don't claim for it because it's usually a very small claim.

Emigrating and tax affairs

  Written by Nicci   Posted 6 April 2017

What does SARS need to finalise tax affairs when emigrating? All my local income will come to an end once I leave.

Capital Gains Tax: Two

  Written by Nicci   Posted 5 April 2017

I bought a house in December 2013. In November 2015, I bought a second house and it was registered in my name, February 2017. The intention was to let out the first house, and we moved March 2016, with the first house now being empty. However, in the meanwhile, I decided to sell the first house. I haven't had any tenants staying in the first house, it has been empty for a month now. We stayed in the first house since I bought it, for over two years. Will I be liable for capital gains tax, or wil...

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Tax clearance certificate for a non-resident

  Written by Nicci   Posted 5 April 2017

A non South African citizen brought money into South Africa, bought a house and sold it recently. She needs a tax clearance certificate. How does she get it as she has no tax number?

CGT on primary residence (if it has been let out - also my only residence)

  Written by Evan   Posted 4 April 2017

What CGT would I be liable for if my primary residence is my only residence - but rented out?

Tax implication on Voluntary Severance Package

  Written by Nicci   Posted 4 April 2017

What will my tax be on my pension R776000.00 and what will my tax be on my voluntary severance package R342000.00

Splitting medical aid contribution on a tax return

  Written by Nicci   Posted 4 April 2017

I'm the main member on our medical aid and the R3500.00 contribution gets deducted from my account. However, my husband reimburses me for his half (R1750.00) and essentially we each pay for our own medical aid. To what extent can we each list a medical aid contribution of R1750.00 on our tax return?

When can a taxpayer claim the tertiary tax rebate?

  Written by Nicci   Posted 4 April 2017

If a taxpayer turns 75 after 1 March 2017, does he/she get the benefit of the tertiary rebate in the February 2018 tax year, and does he/she have to already be 75 at the start of the tax year which would mean he/she can only get the rebate in the 2019 tax year?

Can register for tax without an ID?

  Written by Nicci   Posted 4 April 2017

I want to register for a tax and it's urgent. I lost my ID and my driver's license too.

Income Tax on Dividends

  Written by Nicci   Posted 4 April 2017

When receiving a Dividend from a Company (as a Shareholder). The Shareholder is taxed at 20% of the value on the dividend paid. If you're also earning a regular salary and paying PAYE monthly, would such dividends paid, be subject to additional Income Tax?

So, basically, would regular Individual Income Tax also apply on the dividend again after paying the 20% Dividend Tax?

NGO and Paying Tax

  Written by Nicci   Posted 3 April 2017

In which circumstances will a non profit organisation pay tax?

Company Taxes (Income, PAYE, VAT etc) Registration

  Written by Nicci   Posted 3 April 2017

Please advise if you're able to assist with registering our company for all relevant taxes and what the cost will be?

Paying a nanny- is it claimable?

  Written by Nicci   Posted 2 April 2017

If you have a nanny can you claim for the wages you paid to her?

How do I calculate the municipal expenses on rental property without previous statements

  Written by Nicci   Posted 2 April 2017

I cannot locate all my past municipal statements for my rental property, I need them in order to log the rates etc. as an expense. I've tried accessing them online, but they only sent the last bill.

SARS Refund and sequestration

  Written by Nicci   Posted 2 April 2017

Why do I need to disclose my income tax number in my sequestration court application? Does this mean that I will not get any SARS refunds due to me whilst under sequestration?

Provisional Tax Submission

  Written by Nicci   Posted 31 March 2017

I freelanced for the 2016 tax year. I just applied to be a provisional taxpayer on SARS eFiling. Do I need to fill out an IRP3(pa)? And when is my first provisional tax payment due?

Can I deduct prepaid expenditure?

  Written by Evan   Posted 31 March 2017

Can you deduct prepaid expenditure? Answer the questions above to find out.

Yes, I can deduct prepaid expenses

This means that you can deduct prepaid expenses in the current year, before the goods are received or services have been rendered. In this instance, the tax treatment differs from the accounting one.

If you are a micro business (turnover less than R1m): you would include the relevant deduction under the "Adjustments: Allowable" section in your ITR14 in the block for "Other Adjustments: Allowable". ...

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Do I need to ring-fence my loss?

  Written by Evan   Posted 31 March 2017

Do you need to ring-fence? Answer the questions above to find out.

Yes, the ring-fencing provisions do apply

When using TaxTim to complete your tax return, click Yes in the Business / Property Rental section when asked about ring-fencing. If you're using SARS eFiling, you'll find this question in the Local Business / Property Rental Income section.

No, the ring-fencing provisions don't apply

When using TaxTim to complete your tax return, click No in the Business / Property Rental Section when asked about ring-fencing...

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Am I an Independent Contractor?

  Written by Evan   Posted 31 March 2017

Are you an Independent Contractor? Answer the questions above to find out.

There are three possible scenarios:

• You ARE an Independent Contractor. You should have no PAYE (employee's tax) deducted from your income. You need to register for Provisional Tax and you should be responsible for your own tax affairs. Make use of the Local Business Income section of your ...

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Should I register for Turnover Tax?

  Written by Evan   Posted 31 March 2017

Yes, you qualify for Turnover Tax

Please read our blog on Turnover Tax for how to register as a Turnover Taxpayer.

No, you don't qualify for Turnover Tax

You will have to submit normal returns as either an individual or corporate taxpayer.

Is my business a Small Business Corporation?

  Written by Evan   Posted 31 March 2017

Yes, my business is an SBC

You qualify for the special tax rates for a Small Business Corporation.

No, my business is not an SBC

You do not meet the definition of an SBC and therefore all profits are taxed at a flat rate of 28%.
If you need help completing your business tax return, try TaxTim.

Find out if you are a Provisional Taxpayer

  Written by Evan   Posted 31 March 2017

Yes, I am a Provisional Taxpayer

If you have not registered as a taxpayer then you need to do so! If you are registered on eFiling you can amend your tax types online: go to your eFiling profile and under the tab "Organisations" click "Request tax type" and insert your tax number under the provisional IRP6 block. You will need to complete an ITR12 and two IRP6 returns every year, learn all about provisional tax here. Don't worry, TaxTim will ask you all the right questions so that you complete your tax return correctly....

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