FAQ Blog Calculators Students Logbook Contact
Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


Tax on money from PayPal?

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

TaxTim Marc TaxTim Marc said:
23 September 2013 at 8:57

You would need to register as a provisional taxpayer and pay tax to SARS in two (optionally three) chunks per year. See here for all the details: What is Provisional Tax? How and when?
This is because you are not a full time salaried employee, but instead earn your own income and must therefor pay tax manually. You may deduct from this income all your business related expenses to arrive at a reduced taxable amount which will be taxed according to the SARS tax rates 2014.

This entry was posted in Tax Q&A and tagged , , , . Bookmark the permalink.




Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.