Confused taxpayer!

Posted 5 November 2013

I started working on April 2009 and got my 1st IRP5 in 2010 and I submitted it and they told me that it was not necessary for me to submit since I don't have medical aid and annuity then I did not submit in 2011 and 2012 and I got a letter and SMS telling that I owed SARS R500 for not submitting in 2011 and 2012, now my problem is why was I told there was no need for me to submit and yet I'm being told that I'm owing...is it my fault because I knew nothing about tax returns back t...

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Physical Presence test questions?

Posted 5 November 2013

I have had a complex tax year!

Firstly I am a RSA resident.
From 1/3/2013 - 18/5/2013: 79 DAYS I worked in USA, and was paid by the USA firm.
From 13/08/2013 - today: 72 DAYS I have worked in Zambia on contract, paid out of SA.

My questions are:
1. If I go passed the 183 days, will my tax be refunded?
2. What am tax am I liable for if I had to go passed the 183 days?
3. If I go on holiday for the remaining 40 days outside SA does that count, or do...

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Do 'casual work people' have to register for tax?

Posted 4 November 2013

I want to ask students (between the ages of 15-17 years) to help out in our company for 3 days (once off) within a 20 day period - do these students have to register for tax? I will pay them R35 per hour for a 5 hour shift.

I also want to ask an adult to work for me for 8 days within a 30 day period once off. Do I have to ask her if she is registered for tax? if she is, do I have to pay her through the company payroll or can I pay her out of petty cash?

Calculate Wear and Tear / Depreciation using Interpretation Note 47

Posted 2 November 2013

My question has to do with Calculate Wear and Tear / Depreciation using Interpretation Note 47.

Can one claim depreciation on a personal car that one uses to get to work and back?

The 183 days is it in a calendar year, financial tax year or 12 month period from day job started?

Posted 1 November 2013

I am currently working in the DRC. I understand that my first stint has to be 63 days unbroken period out side of SA and then 183 days has to be done in 12 months. Please explain the 12 months. Is it a calendar year, is it a financial year, or is it 12 month period from the date we first left to work outside of SA to be exempt from tax.

Do I need to submit a tax return if I earn less than R150 000 in total from 3 different funds?

Posted 1 November 2013

I am a pensioner (age 68) I receive only pension & retirement annuity income (3 IRP5 recieved totally less than R150 000 for the year). No tax was deducted by the Funds. Do I still need to submit my income tax return to SARS? If so, would I be liable for tax on this amount?

Medical contribution as income and two different source codes for medical deductions? What does that

Posted 31 October 2013

My nephew works for family business. The business is paying his medical contribution and on his IRP5 under income received amount of R59 133 / source code 3810 appears. uUder deductions the same amount appears twice with 2 different codes namely 4005 and 4474. Why are there two different codes and what is reason for code 4474. Could you please explain this to me.

Second question: on a recent payslip "Medical aid tax credit applied -R646.00 appears" - could you please help with this...

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Can your employer ask you to pay a fee (R40) to email a duplicate copy of your IRP5 to you?

Posted 31 October 2013

Can your employer ask you to pay a fee (R40) to email a duplicate copy of your IRP5 to you? Is this best practice or legislated? if this information is yours already why then do they have a right to charge you for what is rightfully yours?

CGT on unit trust sale?

Posted 31 October 2013

Do all types of unit trusts attract capital gains tax when units are sold for cash withdrawal? Is there a yearly tax concession limit on investments such as unit trusts which is not taxable?

Basic Salary Below Threshold + Extra Commission Earned

Posted 30 October 2013

I earn a basic salary that falls under the threshold (R5000 pm) but then earn commission which bumps it up over the threshold. Now this commission can vary, from R500 to well over R1000. How do you calculate this per month, as each month will fall into a different bracket (referring to the SARS monthly tax deduction tables). Do we simply look at the total amount and deduct the applicable tax applicable in that bracket each month?

How do I claim home expenses from a former work area in a rented flat that I lived in?

Posted 30 October 2013

Hi TaxTim

I am trying to finish off filling out my tax form and came across the home expenses deduction.
With my former company I was working from my rented flat of which I had one room demarcated for work fitted with a desk, chair and fax/printer/copier machine.

I am confused currently as I am not renting that place anymore and not working for that company anymore and am not sure if I am entitled to claim and if so what can I claim. I paid R4600 for rent monthly and the space took up 20% of the whole area. ...

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Tax directive not issued to SARS for retrenchment?

Posted 30 October 2013

My company forgot to do my tax directive when they retrenched me in Sept 2012. Paid me in full the amount. Can I get the company to issue me with a tax directive now?

Investment information to be added on the SARS form and capital gains on what I draw every month?

Posted 29 October 2013

Hi, I have and investment, local and foreign dividends, that I draw an amount off every month of R6 000, there is a capital gains on this. I do not own fixed assets of any sorts and do not have a job, so the R6 000 is what I live off. How does this work with the capital gains on the SARS form, surely there should be and exemption for this? Also, the SARS form only asks for foreign withheld tax on dividends and not the local withheld tax. In the exemption area under non taxable what net amount do...

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Do sole proprietors charge VAT if their turnover is less than a R1 million per annum?

Posted 29 October 2013

Do I charge VAT as a Sole Proprietor earning less than R1 million turnover per annum? If so, do I need to be VAT registered?

Missing "Income Replacement Benefit" certificate - what do I do?

Posted 29 October 2013

My employer completes my ITR12 and as I don't have any other claims or income, it is usually fine to be submitted as is. However, SARS says I owe them money. As I understand from our finance department, my employer never attached the "Tax certificate on income replacement benefits" that states that the employees does have access to a disability income benefit. They said that this is the reason I owe SARS money and once I submit the certificate I will owe SARS nothing. How do I explain to SARS m...

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Does SARS, pay all the previous years and do they have my previous IRP5's?

Posted 29 October 2013

If I do tax returns, will SARS still refund me for the past years that I`ve been paying tax if I am eligible.

Secondly does SARS, has my previous IRP5 from my previous employer?

How do I insert the income protection contribution 4018 on my income tax return?

Posted 28 October 2013

After entering information on eFiling for my tax return and saving it my tax calculator result is not reflecting my income protection contribution...is it code 4018 under deductions cause that it what I am saving it under??

Claiming tax on own medical aid?

Posted 28 October 2013

I have my own medical aid. Can I claim tax on my own medical expenses. I am working and my company does not provide medical aid.

Can I claim deductions for a living allowance given to my elderly mom?

Posted 28 October 2013

I pay my elderly mom R2 000 per month for living expenses. She does not qualify for a South African pension as although my dad was classed as a South African citizen, my mom's citizenship remains British. She received a small amount of money when my dad died which she invested and now earns R1 000 per month so her total income for living is now R3000. My question is, I would like to know if there is some sort of deduction I can make for this amount?

Do I have to register for PAYE if my employee earns taxable income elsewhere, but only R2 500 from m

Posted 28 October 2013

I have a parttime receptionist and pay her R2,500 per month. She also earns R15,000 per month from another employer. Do I have to register for PAYE, because her total income is taxable, or do I not register because what I pay her is less than the taxable amount? She clearly has to pay personal income tax on her total earnings, but it seems to me that I do not have to register for PAYE. Please advise!

I classified myself incorrectly

Posted 27 October 2013

I clicked on provisional taxpayer by mistake and I can't find a way to undo. How do I start the process afresh?

What is the tax benefit in working outside of South Africa?

Posted 25 October 2013

My husband is working in Zambia for a South African company, his company pay his salary into his South African bank account, he has been advised that if he has worked for six months out of South Africa for a least 6 weeks at a time he can claim the whole of his years tax back?

How do I know if I am due a tax refund?

Posted 24 October 2013

Is there anyway of determining whether I am due a tax refund before filing my ITR12 with SARS?

An elaboration on source codes 4040 and 4020 on the ITR12?

Posted 24 October 2013

My wife and I are members of a medical aid. I am the main member and she is a dependent. The cost of the monthly contributions are partly paid by my employer and partly by myself.

My wife however pays me monthly for our portion of the medical aid monthly expense after it has been deducted from my salary because she earns more than me, but doesn't receive a medical aid option from her work.

My wife also had out of pocket medical expenses amounting to R4 100. In assisting her with her tax return, if we insert her out of pocket medical expenses (source code 4020), the return calculator says a return of zero...

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How do I know when my tax return has been accepted/finalised?

Posted 24 October 2013

Hi Tim,

I have read through your blogs and I have to express my amazement. Really great stuff! I

I completed my tax return last night via eFiling and I have only received an ITA34 almost immediately after filing it. According to the ITA34, SARS owes me R4954. Is there a difference between that and a ITSA? I have never received an ITSA in the past, but it seems like everybody does get one. How do I know that everything is in order and that my return is accepted? I have gone...

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