Expense boundaries and amounts on section 4016

  Written by Marc   Posted 3 January 2013

Hi Tim

Awesome website!

I earn my income on commission and am often entertaining clients, paying for coffee at meetings and lunches, client gifts etc - all part of the relationship building process.

Because of what I have submitted on section 4016, I have been selected for audit. I have kept all my receipts for client entertainment. Can I just submit these receipts and what are the limits here?

Also I have also claimed for bank charges and client production costs. Is this within the boundaries of 'expenses incurred in the production of income?'...

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I am on work permit on a foreign passport, I do not have an SA ID number - how do I submit returns?

  Written by Marc   Posted 3 January 2013

How do I efile? I need to know, how do I file with my foreign passport number? This is my first return. I am being paid with deductions at source by my employer.

Is R860 tax on R4600 gross income correct?

  Written by Marc   Posted 3 January 2013

Hi, I have been working for a company and my gross income is R4600 yet they are taxing me R860.

If I am earning two salaries how does tax work?

  Written by Marc   Posted 3 January 2013

I am currently earning a salary as a designer in a design company and now also earning an extra income by designing a disability newspaper on weekends, my company has finally gotten funding from the government and they are back paying me R5000 for doing the newspaper layout, how much do I need to be taxed on this amount? They have taxed me R900, is this correct? Thank you for your help.

Tax on salary of R14355.00 per month

  Written by Marc   Posted 3 January 2013

What is my tax amount that I should be paying?

I don't have a Medical Aid. May I still claim for medical expenses like GP visits, dental etc?

  Written by Marc   Posted 3 January 2013

I would like to know as this is a question I have asked many times and cannot seem to find an answer. I am NOT on any medical aid but sometimes I have to go to the doctor or dentist. May I claim for the prescribed medication and for the visits etc?

How to claim medical expenses for 2013

  Written by Marc   Posted 3 January 2013

I pay medical for myself and 3 dependents - so therefore a total of R768.00 per month I can claim back for - right? What about expenses not covered by the medical aid? What I am not understanding - do we at the end of the day get paid out, or not?

Freelance earning under R60 000 p/a. What tax do I pay?

  Written by Marc   Posted 3 January 2013

Hi,

I work on a freelance basis. I have one regular client who deducts tax from my pay (@ 23% of invoiced amount).
Other clients pay me in full.

I earned less that R60 000 in the 2012 tax year as I was abroad for most of the year.

As far as I understand, I should not have to pay any tax as I have earned less that R60 000? But I should be reimbursed for the tax I paid through client?

What tax forms do I need to complete?

Thanks

Is a sale of software, IPR or patent considered a capital gain?

  Written by Marc   Posted 3 January 2013

Dear Tim,
Me and my wife have been developping few software packages for years.
Now we have a client that wants to purchase them.
1. Is the sale of the software and/or IPR and/or a patent considered a capital gain?
2. Is it is a capital gane, can we sale those in our private capacity?
3. How if this taxed in case that we receive 200k per person each year for a period of 5 years?

Thank you

Am I considered a tax resident in South Africa?

  Written by Marc   Posted 3 January 2013

I have been working temporarily in South Africa for the last 6 years.. Over the last 2 years I work in SA less than 183 days per year and am out the country for more than 60 days continually, but if I add up the number of days I have spent in the last 5 years in SA it is over 915 days. My house is out of SA.

How do I claim tax back as a South African working outside of SA?

  Written by Marc   Posted 3 January 2013

Hi, I am a South African working outside South Africa, getting payed by a South African company into my SA bank account. The company pays my PAYE / Pay As You Earn. I am out the country for - 260 days a year, and have time period longer than 90 days consecutive outside of SA. How can I get my tax back?

How does tax get deducted from a self employed sales/marketing consultant?

  Written by Marc   Posted 6 December 2012

I freelance as a sales/marketing consultant. I charge a consulting fee per day to companies and also receive commission on any sales made during that period. What percentage gets taxed on the commission and what percentage on the consulting income? What can I claim back as a freelancer? (travel, accommodation, airfare, food)?

Can I claim my prescription glasses as medical expenses?

  Written by Marc   Posted 22 November 2012

I cannot see without glasses and have been prescribed glasses for anytime use and driving. Can I claim this from my tax as medical expenses - they are very expensive!

Was I qualified to pay tax return in 2007-2008?

  Written by Marc   Posted 21 November 2012

I never submitted my tax return for 2007-2008. At that time, I was earning R69000 per annum. Also the tax return was done manually and unfortunately I can't find any copy. Now in 2012, SARS wants me to pay R8000 penalty.

My questions are:

1: was I qualified to pay my tax return?
2: What must do to dispute this penalty as I am not earning much currently?

Thanks in advance for your advice.
Ps: I am a permanent resident(SA).

How do I reflect UIF payouts as an income on my tax return?

  Written by Marc   Posted 21 November 2012

I lost my job and had to claim unemployment for a few months. I then recieved an income after that but need to reflect my UIF on my tax return as my return currently shows a negative income after pension etc.

Start of employment period on tax return

  Written by Marc   Posted 21 November 2012

I would like to know I am permanently employed and started my employment a few years ago and still am. Which dates should I fill in when asked to input earliest month of employment?

How to submit a dispute after IT34 notice

  Written by Marc   Posted 21 November 2012

I am a medical doctor working in a state hospital. I get an IRP5 from Western Cape department of Health. I also earned R12 020 in the last year doing private locums which I have declared. I understand that I will have to pay tax on this amount and have made provisions for this. When I received my IT34, it says I owe R11000 (almost as much as I earned in total). I usually get money back on my returns (from medical aid, income protection and retirement annuity) so I don't know how they calculat...

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Medical aid codes

  Written by Marc   Posted 21 November 2012

In my IRP5, under deductions/contributions, the following appears:

code 4005: R18 324
code 4474: R11 927

But after using the SARS calculator, under amounts assessed in the SARS calculations:
Code 3810 Medical aid contributions paid on behalf of employee: R11 927

Under tax calculator, deductions section:
Code 4008: Medical expenses (Total) R8640

Is this right? The amount of R18 324 does not reflect in the tax calculator's results.

Tax claim for medical expenses

  Written by Marc   Posted 21 November 2012

Hi Tim

I had to get two hearing aids but the medical aid only paid for one. I was told that I can claim the cost for the other one from tax but if I use the e-filing calculator it seems as if I will only get R5000 back of the R15000 I paid. Is that possible or how do I claim the full amount?

I am from the UK, but will get permanent residence in SA, but I have money overseas, will I pay tax

  Written by Marc   Posted 20 November 2012

If i bring funds into SA and earn interest do I have to pay tax on it, what is the free allowance and then how much is it thereafter please?

How long would my refund take to pay out if its under Verification Audit?

  Written by Marc   Posted 20 November 2012

I submitted my tax for 2009,2010, 2011 and 2012. they are doing a Verification Audit for 2012 and I submitted my documents, how long will that take and how long will my refuind take to get paid out?

Do I need actual sale slips or would bank statements suffice?

  Written by Marc   Posted 20 November 2012

I don't keep all the sales invoices / slips for medical expenses (OTC stuff). I do however have some expenses which I know will show up on my bank statements and also the monthly stuff like birth control which I pay for. Do I need the actual slips or will make bank statements do?

How do I deduct for donations made to a NGO?

  Written by Marc   Posted 20 November 2012

I make regular donations to a registered NGO - can I deduct this from my personal income tax (under contributions) and what source code should I use?

Income Tax Verification

  Written by Marc   Posted 20 November 2012

Hi Tim, My accountant has phoned and stated that "SARS now needs supporting documents to verify my return submitted by my accountant." Could this mean that I mite well be up for selection for an audit? if not, how long does this verification process take before I receive my return?

How long does it take to process a manual assessment?

  Written by Marc   Posted 20 November 2012

Is it true that a manual 2007 assessment can take upto 12 months to process. I am waiting for my refund from my 2012 assessment but will not get it until they assess 2007.
I have been overseas for 5 years and the accountant failed to submit my returns resulting in penalties. I currently owe R7500 and have a credit for my 2012 assessment. Will not get this until they assess the 2007 return. Please can you confirm the time it will take to process this. Can I pay the penalty in the interim to ...

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