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Jayraj says: 12 April 2024 at 13:51 I have been offered a job as a part time consultant. The company says that I must pay tax directly to SARS. How much tax will I have to pay directly to SARS? |
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TaxTim says: 12 April 2024 at 14:38 Your income will be seen by SARS as self-employed or freelance income. The amount of tax you need to pay depends on how much income you earn per year. South African tax rates are based on a sliding scale, which means the more income you earn, the higher the rate of tax you will need to pay. As a freelancer, your tax obligations will depend on various factors such as your income and allowable deductions. You can make use of our SARS income tax calculator to estimate your tax liability based on your income and deductions. It's crucial to keep accurate records of your earnings and expenses throughout the year to ensure that your tax calculations are as precise as possible. If your income fluctuates, it's a good idea to reassess your tax obligations regularly to avoid any surprises come tax season. You will also have to register for provisional tax in order to pay your tax due to SARS. Provisional tax is the tax that you pay over to SARS two or sometimes three times a year. It is for people who do not have a conventional employer who can pay the tax due on their income over to SARS. Registering as a Provisional taxpayer is a smart move for freelancers or self-employed individuals. It helps spread out the tax burden across the year rather than facing a large sum during tax season. Plus, it ensures compliance with tax regulations, which is crucial for avoiding penalties and interest. By paying your taxes periodically throughout the year, you can better manage your finances and stay on top of your obligations to SARS. Click here for more details on provisional tax. |
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