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John says: 20 May 2015 at 22:11 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, dvd cases and airtime etc adding up to roughly R1000, and petrol to drive to and from the shop, R1000, leaving me with roughly R4000 p/m profit. What amount will I need to pay tax on? * Which taxed expenses may I claim? * Would I need to pay provisional tax? If there is something which I did not list here but pertains to my scenario, please advise. |
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TaxTim says: 21 May 2015 at 11:37 You are exactly right in what you would be able to claim which are expenses related to earning income. On that profit you actually would not need to pay tax if this is our only source of income as R4000 per month is less than the tax threshold. |
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