How to calc and when to pay CGT on a once off payment?

Posted 28 January 2015

received a once off payment in June 2014 from a trust and my company asked Phillipp Haut for an opinion on how it should be taxed. His response was
What is certain though, are the following:
1. The beneficiary must disclose the capital gain in his or her tax return. 2. This involves showing the relevant portion of the trust?%u20AC%u2122s proceeds and base cost of the shares. 3. No employees?%u20AC%u2122 tax needs to be withheld. 4. The capital gain must be taken into account in the employee?%u20AC%u2122s second provisional tax return for the year in which the gain is distributed to him or her. My questions are:...

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Incorrect provisional tax return resulting in monies owing to SARS?

Posted 27 January 2015

Can I negotiate with SARS to reduce an amount owing from a previously incorrect submitted tax return i. E. An accountant submitted a provisional tax return on my behalf. I left the company after three months and did not earn a further income. SARS now wants money from me.

What must I submit to SARS by the end of January 2015?

Posted 19 January 2015

After submitting my normal Income tax return for 2013-2014 around August last year I was advised by SARS that I was a provisional taxpayer and should submit a return by August 2014. As this deadline had passed I was advised by a SARS consultant to submit the second return by February this year 2015. I see from your reminder that Provisional tax returns is required to be submitted by the end of January 2015 for the 2013/2014 tax year. As I was not advised that I was a Provisional tax payer at tha...

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Why so much Tax? (SARS fortmonthly, PAYE, Personal Provisional Tax & Business Provisional Tax)

Posted 19 January 2015

My husband owns a company and has been instructed by his Financial Service Provider to make 2 separate payments for Provisional Tax, One payment for Personal Provisional Tax & Business Provisional Tax, Why are we liable to so make so many payments to SARS. As it is we pay Tax every 2 months as well as PAYE?

Do I need register for provisional tax?

Posted 16 January 2015

I currently earn a salary above R70,000 a year and I want to start doing some freelancing work where I will be serving mainly international clients and will be paid through PayPal and then withdraw that money to FNB.
I will be doing this job as a hobby so I expect to make maybe few hundred rands a month, and sometimes less, so it won't really be an income.
So I need to know if I have to register for provisional tax?

Do you pro-rata the threshold for provisional tax?

Posted 8 January 2015

I started an allied medical practice in my own name in October 2014. I was not working prior to this. So far, I have collectively earned R22000. By the time the end of this tax year comes, I will not have reached the R70000 threshold. Does this mean that I do not need to submit a provisional return or should the threshold be adjusted pro-rata i.e because I have only worked for 5 months, the threshold would then be R29166?

Medical scheme fee tax credit is greyed out and no credit amount reflex on IRP6.

Posted 6 January 2015

On the provisional tax for individuals 2nd period 2015 the the medical scheme fee tax credit is greyed out and no credit amount reflex in this column on the IRP6. On the first period this was correct for two people with an amount of R6168.00 was filled in. After various calls S.A.R.S they cannot give me a reason and for a month have not come back to me with any answers.

Can I claim medical expenses as a dependant on my husband's medical aid?

Posted 3 December 2014

I'm a new provisional taxpayer. Our private medical aid is in my husband's name. Can I claim anything for my medical expenses not covered by medical aid?

Do you pay tax on cash back from loyalty programs

Posted 3 December 2014

I work as a sole proprietor, I belong to discovery and get a cash back bonus every month, do I need to treat this as income and pay tax on it?

Depreciation on LDV for property rental business

Posted 29 November 2014

We have accumulated 8 rental properties over the last 10 years. I will soon retire and plan to do all maintenance myself, including some of the gardens. Will SARS accept depreciation on the LDV and tools that I plan to acquire and will it be acceptable to apportion these costs pro rata the various properties? Is it acceptable to combine all properties into one business for tax purposes?

How do you calculate Med/Scheme tax credit and Additional medical expenses

Posted 27 November 2014

I am 81 and married and I see that the way one shows medical expenses seems to have become complicated. Am I correct in working it out as follows?
My Medical scheme fees for the year are R22 896.00 and additional medical expenses R8335.
In the line ?%u20AC%u0153Medical scheme fees tax credit?%u20AC? I enter R6168 (R257x2x12).
Excess Medical scheme fees are R4392 (R22896-3xR6168)
In the line ?%u20AC%u0153Additional medical expenses?%u20AC? I enter R4342.33 (R4392 R8335)/3

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What do I apply for in Freelance?

Posted 23 November 2014

Hi.I am getting paid a fixed monthly amount from a company to do merchandising for them 3 times a week.This is my only source of income? (R7000,00 per month)I will also need to pay my petrol with this income as the job require traveling?What do I need to apply as?will it be a tax directive or a provisional tax payer?

Net Capital of Business for Sole Proprietors?

Posted 21 November 2014

I'm a Sole Proprietor.Under "Statement of Local Assets and Liabilities" there is a field "Net Capital of Business, Trade, Profession or Farming"I've already filled in all Profit and Loss under the section of "Local Business, Trade and Professional Income (incl. Rental Income)Do I just fill in the result (of Profit and Loss) again under "Net Capital of Business, Trade, Profession or Farming"?

Business parking fees

Posted 21 November 2014

Where in eFiling do you log business parking fees?
(If your business is in a business park)

what is IRP6?

Posted 20 November 2014

what is IRP6?

Income tax on salary from a non- profit organisation in USA

Posted 18 November 2014

I"m working for a non-profit organisation in America. How does the income tax work?

WHAT ARE DEDUCTIBLE EXPENSES FOR SELF-EMPLOYED SURGEONS

Posted 15 November 2014

I am a self-employed surgeon in the private sector. My business is my primary source
of income with most expenses [ including the astronomical amount for my insurance!] being
covered by it.

How do I fill in my tax return? What can my deductible expenses be? I travel to congresses
regularly and cover most of those expenses on my own.

When I was employed in the state sector it was much easier with my IRP5 Form.

If you're a freelancer who earns below R70 700, do you have to submit a provisional tax return?

Posted 14 November 2014

I am a freelancer but I earned under the R70 700 threshold. Do I have to register for provisional tax? Some people have told me that I have to submit a provisional tax return anyway while reflecting on the return that my taxable income was zero. Seems stupid.

When do you file the first and second period of the IRP6 form if you only opened in Nov 2014?

Posted 14 November 2014

If you left work in February 2014 and started your own small business in August 2014 but you only changed from a non provisional taxpayer to a provisional taxpayer in November 2014. When do you file the the first and second period of the IRP6 form?

Where do I enter the capital gain for unit trusts on my tax return

Posted 13 November 2014

I have an IT3c unit trust provisional consolidated capital gains tax certificate in front of me. I need to fill in the capital gain for my unit trust under code 4250. I believe I need to select the last question on the first page saying - have you received any additional income. From there it gets rather confusing because it asks me under capital gain what assets and how many I have disposed of? Where do I just fill in the capital gain for unit trusts? If I say that I have disposed of assets and...

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Interest on late refund from SARS?

Posted 12 November 2014

In response to your blog entry "What?%u20AC%u2122s the delay with getting my SARS Refund?". When and how does SARS become liable to pay interest on late refund payments? Surely there must be a mechanism to keep SARS honest when it comes to keeping our money and delaying our refunds?

Depreciation/Wear and Tear

Posted 12 November 2014

Calculating Depreciation/Wear and Tear (note 47), does it apply to both provisional taxpayer and regular taxpayer ?Under which conditions can you claim for it ?

Need clarification on whether an ITA34 means they have concluded your review by SARS?

Posted 11 November 2014

I would just like clarity on this. I submitted my return, they asked for supporting docs, I gave my tax certificate of medical aid only and then was issued with a ITA34 which said said I was due a refund.I don't have an ITSA, should we get both? See below. What I am unclear of is the wording, it says the assessment has been concluded but then later on it talks about info not matching and a review. I have looked back on previous returns I have done and it said the same and I got the refunds with no hassle. Just want to know if this is final now or may they come back and request more info or can I expect a payment in the next few days?...

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What of form of tax do I pay if I am an SA resident employed and paid by a foreign employer?

Posted 11 November 2014

I am employed by an non-profit organisation based in the UK. I am a permanent resident of SA and I work from home. I receive my salary from the UK (monthly, with payslips) in GBP every month and I would like to know what I need to do to pay tax and what documents are required for SARS. Do I do a normal tax return?

Is it best to keep financial records?

Posted 11 November 2014

Do I need financial statements if I'm a sole proprietor?
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