Should the tax rebate be pro-rated for foreigners starting to work in SA (not immigrating)

  Written by Marc   Posted 11 February 2016

I foreigners start to work in South Africa & earn South African source income, say, from February 2016. Will they receive their entire tax rebate for 2016 based on only the 1 month's salary? This would imply that they will obviously NOT pay ANY taxes on a salary of up to R73,650 for the month of Feb 2016. Is this correct or should the tax rebate of R13,257 be pro-rated to 1 of 12 months, because they only worked for 1 month of the 12 in the tax year?

Request for documentation for RFC

  Written by Marc   Posted 11 February 2016

I filed my tax return and it was selected for verification. I then submitted the documents for review and noticed that I had made a mistake on my tax return. I filed a request for correction and then got a notice that I needed to submit supporting documents as the information on my tax return did not match their records. Is this normal when submitting a request for correction or am I being audited?

Meaning of medical tax credits and medical fringe benefit?

  Written by Marc   Posted 11 February 2016

Tim! Please advise on these 2 things :I am a teacher, this month (january 2016) payslip reflects the following;

1)I have 2415. 00 under medical fringe benefit. What do these numbers mean? is it money?

2)Medical Tax credits are 721. 00, Whats the meaning of this?

Capital gains tax on primary resident

  Written by Marc   Posted 11 February 2016

What is the Capital Gains Tax amount if you bought a house in 1991 for R100000 (approx. ) and sold it in 2015 for R1. 9m.

What if my salary increases significantly?

  Written by Marc   Posted 10 February 2016

If I earned a significantly lower salary for the first half of the tax year and then a significantly higher salary for the second half of the year under PAYE, would the various periods tax be calculated appropriately? I have been advised that because the new salary is much higher it therefore pushes me into a higher tax bracket and that this affects my earnings for the entire year. I. E. I have to total all my earnings and then calculate my tax payable on this higher tax bracket rate. This doesn...

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Multiple sources of income

  Written by Marc   Posted 10 February 2016

I am a co-owner of a company which I work for and currently work part time for a University. Last year I worked part time for a corporate company and thus I have multiple sources of income. I find it extremely difficult to understand where each of these earnings should go etc.

Pension/provident fund payout after retrenchment

  Written by Marc   Posted 10 February 2016

My husband was retrenched last year November 2015, he is still without a job and his pension/provident fund need to pay out, on you free SARS retirement fund lump sum tax calculator is shows that if you take the money after retirement/retrenchment/death you don't pay TAX on a amount under R500 000. 00, is that correct?

If our company makes a yearly loss of R9233899.00 . how is the tax refund is calculated?

  Written by Marc   Posted 10 February 2016

If our company makes a yearly loss of R9233899. 00
how is the tax refund is calculated?

Retirement Funds Tax Laws Effective 1 March 2016 - How SARS' New Changes Affect You!

  Written by Vee   Posted 10 February 2016

If you’re diligently putting money away for your retirement in the form of a pension, provident fund or retirement annuity, you may be curious – perhaps even a touch concerned – about the changes SARS has made to the retirement fund tax laws, which come into effect on 1 March 2016.

If you missed the news, here's a quick overview.

SARS have changed how contributions to retirement funds are treated from a tax perspective, as well as how your funds are managed when you retire...

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Calculate allowable deduction for pension fund contribution if total retirement fund is R103 500

  Written by Marc   Posted 9 February 2016

If the total retirement fund income on the IRP5 is R103 500. What will be the maximum allowable deduction for pension fund contribution

HOW TO ADD TAX TO GROSS

  Written by Marc   Posted 9 February 2016

I have been paying my staff the salaries without tax and uif, but I now want to add tax to the salaries I paid them. How do I go about calculating that?

Percentage tax payable for 65yr old on dual monthly income

  Written by Marc   Posted 9 February 2016

I receive a gross monthly pension of R10637. 01 from Old Mutual and a gross salary of R15000 from my present employer. What Percentage tax should I be paying monthly on each of the amounts so I can have them changed from 01/03/2016. I am 65yrs old

Incorrect logbook information

  Written by Marc   Posted 9 February 2016

I just want to find out with regards to car allowances. I switched employment in June 2014 and did not have access to my kilometers claimed at my previous employer. I started working at my previous employer again in January of this year and found my old information. It seems like I might have submitted incorrect information on half of the year for car allowance. I am currently being audited manually, and do not know what to do, please advise?

If I pay my emplyees's lunch, can I deduct it and under what heading?

  Written by Marc   Posted 8 February 2016

My workers eat lunch daily and I pay for it out of the business profit. Can I deduct this amount and how much of it can I deduct? They eat about R100. 00 worth of food and drink per day and I keep all these slips. Can this be deducted under "entertaining"?

How do I calculate employees tax?

  Written by Marc   Posted 8 February 2016

How do I calculate employees tax when there's an annual amount?

Revenue paid offshore

  Written by Marc   Posted 8 February 2016

If a South African company is paid offshore for services rendered within South Africa, is the company obliged to bring the revenue back to SA?
Revenue is reported on in SA, it's just that it gets paid offshore. Bringing it back every month incurs a lot of bank charges, amongst other things. Many thanks

Medical costs deducted on IRP6 form

  Written by Marc   Posted 8 February 2016

We have no medical aid, but have dental and optometrist receipts for work done. How can we deduct this when we declare the IRP6 and ITR12?

Unemployment and provisional tax

  Written by Marc   Posted 8 February 2016

I was unemployed for roughly six months of the 2015/2016 tax year, do I need to submit any proof. Now with the new work I have to pay provisional tax because I work for myself but not as a company, how does this affect tax deductions?

ITA34 - Where's my 'Letter containing further instructions'?

  Written by Nicci   Posted 8 February 2016

After submitting my ITR12, I received an ITA34 in which 'a letter containing further instructions' is mentioned. "Please note, however, that the information provided by you in your income tax return does not match the information in the possession of SARS or your tax return has been selected for verification. Attached you will find a letter containing further instructions for you to resolve this. Please note that any refund which may be due will be withheld pending finalisation of this matter. According to the information you declared in your income tax return, you were liable to pay provisional tax for this year of assessment...

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Will I be taxed if I loan my brother money interest free?

  Written by Marc   Posted 8 February 2016

Will I be taxed if I loan my brother money interest free. I am a South African resident but he lives in the UK.

1. penalty - delayed return. 2. submit returns for previous years 3. community of property/customery

  Written by Marc   Posted 8 February 2016

1. What is the penalty for delayed tax return submission?
2. Can you still submit tax returns for previous tax years which were never submitted?
3. What effect does married in community of property or customary law

Monthly provisional tax payment and foreign exempt income

  Written by Marc   Posted 7 February 2016

Context: I am paid by a foreign employer in USD and will be processing tax payments in my own capacity. I understand from previous questions that I should register as a Provisional Tax Payer. I have two questions:
1) Is it possible to make monthly payments to SARS instead of at the 2 periods in time? If yes, how?
2) I will likely have to work outside the country for period of 183 days/ 61 days continuously - how do I go about getting the refund/ processing my tax given this?

UK property income disclosure

  Written by Marc   Posted 5 February 2016

I am due to become a SA tax resident in the next tax year if I stay (not my intention to stay, but may become a SA tax resident due to physical presence test). I have income from Uk properties which is declared on my uk tax return and uk tax is paid. I still have some net income. Questions:

1. How is this noted on my SA tax return. Ie after uk tax is paid? Or before with a credit for tax paid? But will be paying tax twice?

2. Where is this to be put on the tax return?
...

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Compulsary registration

  Written by Marc   Posted 5 February 2016

When did everyone have to register for tax, regardless of their income?

PAYE for employee with 2 employers

  Written by Marc   Posted 5 February 2016

I am sharing a secretary between me and a colleague. We are working in the same office. We pay her a total of R8000 p. M (R4000 each). Obviously PAYE should be deducted based on her total yearly income (R96000) and paid to SARS before the 7th of each month. Is it fine for me and my colleague to split the PAYE and UIF contributions and pay those separately to SARS, and issue her one payslip between us? If so, does she need two IRP5s issued?
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