Tim is typing...
Hello, my name is Tim. I will ask you a set of questions to help you decide whether you are an Independent Contractor or not.
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 ITR12 to declare your incomes/expenses.
- You are an Independent Contractor, BUT SARS will want your employer to deduct PAYE (employee's tax) at 25%. Your income must be coded to 3616 on your IRP5. You may deduct your business related expenses.
- You are NOT an Independent Contractor. Your employer should be deducting PAYE (employee's tax) from you every month based on the normal tax tables.