Deductible company expenses

  Written by Evan   Posted 16 July 2015

For many years I operated as a sole Proprietor. Early 2014 I registered a PTY Ltd and duly traded as the PTY LTD. As executive director, by choice I did not draw any salary, the idea being that this would help the company cashflow by saving more working capital. I paid for all vehicle expenses ie fuel, maintenance, privately out of my savings, but approximately 90% of the vehicle use and expenses are attributable to the PTY LTD business. Is there any way that these expenses can be recovered from...

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Wrong filing of tax provisional instead of individual

  Written by Evan   Posted 10 July 2015

Good day. I filled my tax via SARS e filing for 201 and it triggered an audit. I got a refund after providing the docs, then after a few days I decided to call the SARS call centre. The guy on the other side told me that I need to file for 2009 and 2011 and that I made a mistake and I filed for provisional tax. They fined me for R2900 interest, now I owe them according to the efilling at the SARS branch. They were not very helpful either, the lady told me I must jus...

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Do I have to pay provisional tax for my company and myself?

  Written by Evan   Posted 8 July 2015

I have paid provisional tax for my small business and taken the profits after tax for personal use. Will I have to pay provisional tax as an individual for that income?

At what point do you become a provisional tax payer?

  Written by Evan   Posted 7 July 2015

Hi there. The 2014-2015 tax year will be my second tax season as a self employed 'freelance' architect. Last year when I submitted my tax at SARS they said I do not need to register for provisional tax and that they would 'let me know when I needed to' so I just submitted a summary of my income and expenses to SARS at the normal tax time and they verified everything and all was ok. This year I am earning double what I did last year and feeling a bit concerned that I may have missed the magic line which crosses me over into a provisional tax payer? ...

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REIT treatment and provisional tax

  Written by Evan   Posted 2 July 2015

I received a REIT dividend source code 4238 on my unit trust IT3B it is very little only R30. Are Reits exempt? Also I read the ITR12 handbook and they suggest I put it under other income/accruals 4214 code with description "income from a REIT". Is this right?

I'm worried they will make me a provisional tax payer due to this extra and only R30 that dosent come from my employment income or local exempt dividends, interest. I dont really want the extra admin issues due to this small amo...

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Rental income of a jointly owned property

  Written by Evan   Posted 2 July 2015

My husband and I are married out of community of property but jointly own a flat that we rent out. When completing my provisional tax return do I include 50% of the income and expenses in mine and 50% in his return or do I include 100% in both our returns and then select the 50% partner option?

If earning money privately, from what value must you declare to SARS?

  Written by Marc   Posted 1 July 2015

I am thinking of doing some management consulting, after my normal working hours. I am hoping to earn approx R 10 000 per month. When do I need to declare this to SARS / or at what value? Do I have to register my company, as i'm not sure if this will be a permanent thing.

Am I still a provisional taxpayer

  Written by Marc   Posted 29 June 2015

I was previously running a business as a sole prop and therefore was registered as a provisional taxpayer. I have now registered a business and pay myself a salary from this. Am I still a provisional taxpayer or can I go back to doing one return per year as before? And if so, is there anything I need to do, or just simply no longer submit IRP6's?

Are pensioners over 75 years still liable for provisional tax?

  Written by Marc   Posted 29 June 2015

If you are over 75 years of age must you still submit provisional tax returns despite your income being over the tax ceiling and your interest earnings over R30,000?

Are South African bank expenses a legitimate business expense?

  Written by Marc   Posted 29 June 2015

As a provisional tax paying sole proprietor I would like to find out whether the exorbitant South African bank expenses are a legitimate business expense? I have a separate bank account for my business income.

Must I register a business?

  Written by Marc   Posted 29 June 2015

I am employed but the employer pay me for the hours worked and does not deduct any taxes or UIF I am responsible for my own taxes. Must I register a business or how can I go about paying over the taxes so I do not need to pay in at the end of the year in my personal capacity.

Is a director of a company a provisional taxpayer or not?

  Written by Marc   Posted 23 June 2015

Is a director of a company a provisional taxpayer or not?

Rental income, less deductions less than cap, must I register for Provisional Tax

  Written by Marc   Posted 23 June 2015

I receive a salary and I recently started renting out my flat (which I resided in as primary residence, until September 2014, rented out since October 2014). I received a Rental income of R40000 for the 2014-15 tax year, the property is still under bond and there was maintenance costs etc. . Which means im still making a "loss" . (i. E. Rental Income of R40000, deductions of R50000, nett -R10000)

1. Must I still register for Provisional Tax?
2. If 1, am I late for Feb, Aug Provisional tax payment deadlines?...

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Declaration of interest on fixed deposits for provisional taxpayers?

  Written by Marc   Posted 23 June 2015

I read your earlier reply to a question on income tax on fixed deposits. However, I am a provisional tax payer and my question is, when do I declare the interest earned on a 12 month F D when the inception and maturity dates do not coincide with the tax year?

IRP6 / ITR14

  Written by Marc   Posted 23 June 2015

I have a June Year end. We have submitted an IRP6 for December 2014(6 months after year end). Second provisional payment, needs to be completed before year end(correct??) Which is before 31-06-2015? Once this is completed. . . Audit takes place for 2015. Once signed AFS for June 2015 have been received - a ITR14 can now be completed - is this correct? Appreciate your help!!!

Extra income

  Written by Marc   Posted 23 June 2015

I own a one bedroom place, wirth about R700 000 in a retirement place. Besides my own home. My main income is salary and tax covered there, IRP5. I get rent of about R36000?
must I register as a provisional tax payer?
is there an amount of extra income for which one does not have to register as a provisional tax payer?
can that income be placed under a general category as extra income?

Reg sole proprietorship with SARS? or add earnings to personal tax.

  Written by Marc   Posted 23 June 2015

I run a very small business (less than R5000 per month) as a sole proprietor in addition working another job. Do I have to register the small business with SARS and do I need to pay taxes each quarter or annually adding both jobs together?

Must a capital gain be included in the first provisional return for the year when the gain is made?

  Written by Marc   Posted 23 June 2015

My company sold a property in April 2015. The tax year end is February 2016. Would the capital gain on the sale of the property have to be included in the first provisional tax return in August. The company has never actually traded and has no basic amount.

Tax due on secondary income

  Written by Marc   Posted 23 June 2015

I currently work a 6 hour day for a company. Tax and UIF deducted and I do receive an IRP5. I want to do extra work. That is work for a different company a few hours a day. Will work approximately 10 to 15 hours a week. They do not want to register me on their payroll. Do I invoice them for service and declare my extra income on my tax return? Will I then become a provisional tax payer?

Do you need to fill in IT144 if you are making a donation of R100,000 or less to your child?

  Written by Marc   Posted 23 June 2015

I and my husband both want to give each of our children (who are both under 18 and not earning any salary or interest) R100,000 each. Will we need to fill in a form IT144 for the donation even though it is at the limit where no tax is payable? Must we declare it on our provisional tax forms?

Expenses claimed as a business?

  Written by Marc   Posted 23 June 2015

Where can I get a list off all expenses I can claim for my sole prop business

Investing money at the bank and earning interest and the tax implications thereof?

  Written by Marc   Posted 23 June 2015

I want to set up an investment at the bank and earn interest on a monthly basis on it. I did some research and I found that I need to register for Provisional Tax at SARS in order to do this. I found out that 2-3 times per annum I would be required to make a payment to SARS on the interest I earn. My question is: Firstly, I would like to budget so I would like to know what percentage will SARS deduct monthly on my interest earned,and secondly,will they tax me monthly in this case or 2-3 times pe...

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What is my tax obligations when running a DVD rental store as sole proprietor?

  Written by Marc   Posted 23 June 2015

I am thinking about acquiring an established Dvd rental store and plan on running it as a sole proprietor and using my personal bank account for the business. This would be my only income and only business. * How would I calculate my "taxable-income" Ex. , (all amounts are monthly expenses) The total turnover would be roughly R15000 of which, R4000 goes toward purchasing films (stock), and R5000 would go toward renting the premises. I would also need to purchase printer ink, paper, stationary,...

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Have to pay my own tax - how?

  Written by Marc   Posted 23 June 2015

In my company I was permanent from June my position will be independent and I will have to pay my own tax. Can I do this monthly and how do I do this?

How will I be taxed if I only received capital injection no orders yet?

  Written by Marc   Posted 24 May 2015

I am a sole proprietor, started my business with no income received yet except capital injection to start and from that received salary. How will I be taxed?
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