Yes, I can claim up to R1,25m of my Foreign Income as Exempt
The first R1,25m of your foreign income will be exempt, the portion exceeding this amount will be taxed in South Africa. Either your employer will include the exempt portion on your IRP5, or you will need to include the exempt income under "Amounts not considered taxable" on your income tax return under the block for "Exempt amount i.t.o s10(1)(o)". Avoid the confusion, let TaxTim ask you all the right questions one-by-one so that you complete your tax return correctly, and get your maximum allowable tax refund....
This means that you would include the relevant deductions under the "Other deductions" section in your ITR12, in the block for Home Office expenses.
You will need to add up all the allowed amounts, then multiply them by the portion of your house that is contained by your demarcated, dedicated home office.
For example: Rates (R2,400) + Electricity (R1,500) = R3,900 House is 60 square metres Office is 3m x 4m = 12 square metres...
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No, I don't need to file
This means you don't have to fill out a tax return for this year. Lucky you :)
SARS requires that certain amounts in foreign currencies must be translated into Rands when entered into your tax return. To do this you must consult the SARS average exchange rates tables that apply for each year, and use these specific values to convert the foreign amounts into Rands.
Tax season is the period in which taxpayers must complete and submit their tax returns to SARS.
The South African Revenue Service begins tax season for individuals in July each year with tax season usually closing in October each year (prior to 2022, the season used to close in November).
the President, Deputy President, a Minister, Deputy Minister, a member of the National Assembly, a permanent delegate to the National Council of Provinces, a Premier, a member of an Executive Council or a member of a provincial legislature;
any member of a municipal council, a traditional leader, a member of a provincial House of Traditional Leaders and a member of the Council of Traditional Leaders; and
a person occupying the office of president, chairman ...
A source code is a four digit identifier / number that SARS uses to capture information on the income tax return. It will usually appear alongside the amount it relates to. Source codes that might appear on your IRP5 are listed below. For business source codes please click here.
Base cost means the cost of an asset against which any proceeds (the price) upon disposal (sale) are compared in order to determine whether a capital gain (a profit) or loss has been realised.
Base cost includes those costs actually incurred in acquiring, enhancing or disposing of a capital asset that are not allowable as a deduction from income.
The following are included in the base cost of an asset: Acquisition cost, Incidental costs of acquisition and disposal, Capit...
Proceeds received for an asset is generally the amount, whether in money or some other form, that the taxpayer received, or is owed, on disposal of the asset.
Assets disposed of by donation, or in exchange for something which is not measurable in money, or to a connected person at a non-arm’s-length price, are treated as being disposed of for an amount received or accrued equal to the market value of the asset.
To incur something from a tax perspective would be to either pay for it using a form of currency or to be in the position where you will have to pay for something at some future date.
Generally this is an organisation that does not work for profit and does not pay tax in or out of South Africa. The organisation is most likely involved with charitable work.
which is -
a non-profit company as defined in section 1 of the Companies Act, 2008 (Act No. 71 of 2008), or a trust or an association of persons that has been incorporated, formed or established in the Republic; or
It is a moderate to severe limitation of any person’s ability to function or perform daily activities. It is a condition that will last for longer than a year and needs to be confirmed by a medical practitioner on the ITR-DD obtainable from SARS. E.g. physical disability (such as wheelchair user, walking aids etc.), mental disability (such as clinical depression, bipolar disorder, dementia, schizophrenia and anxie...
A Connected Person (in terms of a human being) is defined as either:
A relative of yours, including your -
Spouse (i.e a partner in a marriage or union recognised in terms of law or any religion, or in the same sex or heterosexual union which the Commissioner is satisfied is intended to be permanent)
SARS eFiling is an online process for submitting your tax returns to SARS and replaces physical tax return submissions done manually. This service allows individual taxpayers, tax practitioners and businesses to register and submit tax returns, make payments and perform a number of other interactions with SARS in a secure online environment. The website is accessible at www.sarsefiling.co.za.
An ITA34 is a summary of your assessment for the tax year. After submitting your tax return, SARS sends you a summary of your submission - this document is called an ITA34. You need to have a look at it and see if you agree, if not then you can dispute the assessment with SARS. If it does not say that you are audited, and you are happy with the result, then you do not need to take any further action after receiving it.
An ITR14 or Income Tax Return is a form that SARS requires all companies registered with CIPC to complete and submit to SARS once every year. The form is used to declare your incomes and expenses/deductions so that SARS can calculate how much tax your business need to pay, or how much of a tax refund SARS needs to pay to you.
If you run a business that is not registered with CIPC, you would enter in your business-related incomes and expenses into your personal ITR12 tax return, under...
An IT3c is a Tax Certificate received from an institution such as a bank or financial services institution. It is a summary of any disposals you may have made related to the holding of investments with any of these places.
An IT3(b) is a Tax Certificate received from an institution such as a bank or financial services offerer which will be a summary of any interest and dividends both local and foreign that you would have earned by having money invested with one or more of these places.
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. It is used by the employee specifically to complete his/her income tax return for a specific year.