How to declare foreign income?

  Written by Evan   Posted 17 August 2015

Hi, I have a small website that generates some commission from clicks on advertisements. I get paid in USD and GBP. The money is wired from Germany directly to my personal bank account and converted into ZAR. I don't own a formal business and it is relatively small amounts that are transferred. I also have a property that generates rental income. How do I go about declaring the income properly on my tax returns?

Equipment depreciation

  Written by Marc   Posted 17 August 2015

I am a self employed design consultant. I purchased a laptop I use for work late 2012, and have been depreciating it for the last 2 tax years (2013, 2014). My office was recently broken into and the laptop was stolen. Am I able to still claim depreciation on it (2015), even though it is no longer in my possession?
With the insurance payout I have replaced the equipment. Am I able to claim the full amount of the new equipment, or only the difference between payout and replacement cost?

What to include as taxable income for provisional tax calculations

  Written by Marc   Posted 13 August 2015

When calculating "taxable income" on an IRP6 should one include
- expected investment interest ?
- expected investment share dividends ?

Thank you.

Audit because they neglected to inform me about previous tax year

  Written by Marc   Posted 13 August 2015

I got penalties for 2007 when I submitted my tax return for 2015. The consultant did say that I must complete a form to lift penalty for they neglected to tell me when I was at the offices in 2011. The problem now is that I recieved a sms stating that I am audited for 2007.. If I cant get any original documentation, what can I do? I there any way to lift the audit because they neglected to tell me about 2007?

AP34 Penalty and Refund Due

  Written by Marc   Posted 13 August 2015

I have a AP34 penalty. I am also due a refund. Do I first have to pay the penalty before I receive my refund?

Support for cell phone depreciation at SARS?

  Written by Marc   Posted 13 August 2015

What supporting documentation does SARS usually look for when assessing if depreciation/wear and tear on your cell phone is an allowable deduction. Please note that my cellphone is paid via a monthly contract fee. These contracts usually don't stipulate the base price of the phone. Furthermore, what support do you need to give them for the allocation of business use versus private use. I have tried to search and ask what they need as they wanted to verify this deduction, however, I cannot seem t...

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Reconciling interest per S24J

  Written by Evan   Posted 12 August 2015

An IT3(b) form for interest from a bank, when added to the opening balance of a fixed deposit investment, does not agree with the closing balance due (I think) to the accrual provisions of Section 24J of the ITA. I have to "fudge" the entries I have made for interest received each month so that I can get the balances correct for SARS tax returns. Is there any way round this other than to make no bookkeeping entries until IT3(b) are issued after the end of the tax year. This is for a family trust...

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Passive investment and unit trust income - do I submit a tax return?

  Written by Evan   Posted 12 August 2015

I am an independent contractor and my earnings is below R200 000 per year. Over the past two years, I have managed to save and have invested R100 000 in listed shares and R50 000 in investment funds such as unit trusts. I am not sure whether I need to submit a tax return?

Tax on endowments

  Written by Evan   Posted 12 August 2015

What percentage of tax do you pay on endowments upon a husband's death, and his wife is the beneficiary?

Is there income tax payable on interest received from SARS?

  Written by Marc   Posted 12 August 2015

Is there income tax payable on interest received from SARS?
Which section in the tax act does this come from?

Can I correct an already sumbitted tax return?

  Written by Marc   Posted 12 August 2015

I submitted my tax and was told how much of a R,,,, amount I will be getting back(great news). However straight after I submitted I realized there is a stack of receipts at home for medical bills that I did not enter. Is it too late to correct the already submitted tax return?

How long will it take to get assessed and refunded( it will definitely be more than the R,,, amount they gave me today). How long do I have to make a correction if I can?

Account for Rental income and expenses together with my normal PAYE

  Written by Evan   Posted 11 August 2015

I have a rental property which I have been receiving income for in the last tax year. This is the first year that I have owned and rented the property. I also earn income from an employer but have paid PAYE on this income.

The tax return is easy enough without the rental income and expenses but I need help presenting the income and allowable expenses related to the rental income. Does your lite service include accounting for income and expenses for a rental property? I have all the i...

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Not sure to use financed value or retail value for car expenses?

  Written by Marc   Posted 7 August 2015

Good day,

The cost of my car shows retail value of R370 000 but shows after extras minus deposit financed at R311 00

Which value do I use in my tax return?

Early Pension Withdrawal payout time period?

  Written by Marc   Posted 7 August 2015

Hi! I would like to resign and will be withdrawing my pension as a lump sum. My contribution plus the companies plus interest, currently stands at around R190 000. I'd like to know, how long will this take to pay out (I'm resigning on August 20)?

Concerning rental income and SARS?

  Written by Marc   Posted 7 August 2015

In January my wife and I we relocated. We started renting out our house since beginning of Jan 2015. In my tax return, must I count the rental income only for January and February, and subtract cost ie monthly repayment on the home loan and agent commissions?

Inheritance, do I pay tax on it?

  Written by Marc   Posted 5 August 2015

Do I need to declare lump sums that I received from an inheritance? The lump sums were from retirement annuities, a life policy and proceeds from a fixed property that was sold out of the estate. Thank you!

When are Trusts supposed to submit a ITR12 tax return?

  Written by Evan   Posted 4 August 2015

As far as I know, provisional tax payers should submit their tax returns end of January and companies end of February, of the following year of assessment. But when are trusts supposed to submit their tax returns if they are not registered provisional taxpayers?

IT3b source codes

  Written by Marc   Posted 3 August 2015

I have a IT3(b) tax certificate from the bank , they gave me a income source code 4201 , please tell me where it is on the ITR12 ?

What is an IR3(b) actually saying??

  Written by Marc   Posted 2 August 2015

Does an IT3(B) interest received mean that you will receive that amount after declaring your tax? I received the ir3b from gepf requesting that I add it to my tax submission.

What other document to be submitted?

  Written by Marc   Posted 30 July 2015

When is the due date to submit your tax returns?

Correction of IRP5 by employer

  Written by Evan   Posted 30 July 2015

The amount stated on my IRP5 for my Travel Allowance is wrong. My employer decreased my allowance without my knowledge and I've only picked up the error now. My employer says it's too late for them to correct it. I now can't claim the full amount of my travel expenses for the year.

Why can't my employer submit the correct figure to SARS and give me a new IRP5?

The 2007 return is a very simple one, its pure Income tax, no claims, no supporting docs required.

  Written by Marc   Posted 29 July 2015

Hi Tax Tim. On 06/07/2015 I went to submit my tax returns as far back as 2007. I had been living abroad working intermittently on the odd year in SA. SARS were great, all tax returns were filed with no claims on any tax deductions so no supporting documents required. I have a tax return due to me however because the 2007 tax return was so far back its gone for processing and now is holding up my tax return from all the other years. The 2007 tax return is a very simple one, its pure Income tax, n...

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Investment and capital transfer

  Written by Evan   Posted 29 July 2015

I have recently got married to a UK national and he is wanting to transfer some funds for an investment in SA. He is going to transfer the funds into my current account which I will then transfer into a unit trust.

Firstly do I need to submit a donations form they have on the SARS website and if it exceeds the R100,000 will it be liable for tax?
Secondly the income from the investment will be paid monthly. If it exceeds the R23,080 annual exemption what is the rate on the excess? Is it still taxable even if it is below R70,000 per year? I have no remuneration just the investment income....

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What's does lease payments actually refer to?

  Written by Evan   Posted 29 July 2015

Under "travel claim against allowance" Does lease payments refer to the monthly car repayments I make to Wesbank?

If the amount has not a minus in front what does it mean?

  Written by Marc   Posted 29 July 2015

If I submit my tax and it show a amount without a minus in front must I pay the amount or what?
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