SARS have recently become a lot stricter about levying administrative penalties. These are penalties for missing the deadline to submit your tax return. You can read about these recent changes in the law here.
If you have outstanding/un-filed tax returns from prior years, chances are high that SARS will have slapped on administrative penalties.
You may have recentl...
Read more →
The 2024 filing season opens this year on Monday, 15 July.
Tihs year, the tax season is even shorter than last year (and last year was shorter than the prior year!). This means that SARS are giving you less time to file your tax return.
Important Filing Deadlines
21 October 2024: salaried employees, who earn no other income (i.e non-provisional taxpayers)
20 January 2025: self-emplo...
Read more →
In previous years, it was relatively easy to add a company to your eFiling profile, whether it was an Organization or Tax Practitioner profile.
However, since early last year, SARS has changed the procedure. Now, to add a company to your profile, you need to add a registered representative. In order to do this, you must send a request to SARS along with the following documents each time you want to represent a new company:
Received your IRP5 or IT3(a) but unsure what it all means? Here’s a quick introduction to help you understand this tax document.
Your IRP5 starts with your personal details. While these details won’t override what SARS has on record, it’s important to check them and update any outdated information with your employer.
Your ...
Read more →
In order to use TaxTim and import your tax certificates directly from your SARS eFiling profile, you will need to be able to login to your SARS profile.
If you do not remember your eFiling username and password, here is a short guide to request it:
1. Go to SARS eFiling and click "Forgot Username".
What is the definition of tax threshold? Tax thresholds? SARS Threshold.
A Tax threshold is the lower limit of earnings at which tax needs to start being paid. So any income less than the current threshold, would not be taxed.
What is Turnover Tax?
Turnover Tax is a streamlined taxation system designed to simplify tax compliance for small businesses. It replaces several types of taxes—Income Tax, VAT, Provisional Tax, Capital Gains Tax, and Dividends Tax—with a single tax based on turnover...
Read more →
Turnover Tax is a simplified tax system only available to sole proprietors, partnerships, companies, or close corporations with a “qualifying turnover” of less than R1m per year. These types of entities are called micro businesses.
As the name implies, Turnover Tax is a type of tax, which is calculated against the turnover of a business, as opposed to a percentage of profit (i.e. income less business expenses) as per usual business tax. This difference reduces the administ...
Read more →
The enhanced tax incentive recently introduced by the government, known as Section 12BA, aims to promote private investment in electricity generation from renewable energy sources to help alleviate the energy crisis in the country. This incentive is a temporary enhancement of the existing renewable energy tax incentive found in section 12B of the Income Tax Act.
Below are the key points:
Availability and Duration
The incentive is available from 1 ...
Read more →
1. This is the gross base cost of all shares you bought through the institution. You must NOT use this value on your return.
2. This is the base cost i.e the costs attached to the sale of your shares. This amount needs to be entered as the base cost in the capital gains section of your tax return.
3. This is the...
Read more →
SARS has reported a rise in eFiling profile hijacking, involving various methods such as altering security details, creating, or modifying taxpayer profiles, and executing SIM swaps.
The hijackers’ objectives are to redirect tax refunds to fraudulent bank accounts, which they are setting up for this purpose. There are certain banks which appear to feature more frequently.
If you are the victim of such profile hacking, you must immediately report this fraud via the
Read more →
So, you’ve recently submitted your tax returns and shortly thereafter you receive a message from SARS informing you about admin penalties that have been charged against you. This has most probably come as a shock to you. We’ve been inundated with questions from taxpayers asking about these penalties which have been charged against them. Below we’ve highlighted things you need to know as well as ways in which you can handle these penalties.
When are penalties charged?...
Read more →
SARS have recently become a lot stricter with late filers and have changed their rules for administrative penalties. You can read more about these changes here. There used to be some leeway for taxpayers who missed the deadline, but sadly these days are certainly over.
If you received a notification of debt from...
Read more →
Please read the steps below to update your contact details on your SARS eFilng profile:
1. Go to www.sarsefiling.co.za
2. Log into your eFiling profile:
3. Click on
Read more →
Taking a closer look at why taxpayers may be required to pay in tax on pensions or annuities on assessment and how they can avoid a repetition of this each year.
Read more →
In his Budget Speech on 22 February 2023, Minister of Finance Enoch Godongwana announced the introduction of tax incentives intended to encourage the rapid uptake of renewable energy.
Government has developed the scheme in a bid to encourage households to invest in clean electricity generation capacity. The programme is intended to minimise demand on the national grid by reducing the number of households that are entirely reliant on Eskom for their power.
The incentives will r...
Read more →
In today's digital age, social media influencers wield significant influence and often enjoy lucrative partnerships with brands. However, amidst the glitz and glam, it's crucial for influencers to be aware of their tax obligations. In this blog post, we'll explore the tax consequences that social media influencers need to consider in South Africa.
Understanding Tax Obligations
As a social media influencer in South Africa, it's essential to recognize that...
Read more →
SARS has recently issued a new guide with regards to updating your banking details with them. This was done in order to reduce the risk of refunds being paid into the wrong accounts and also to streamline the process, which has tended to be an onerous one in the past.
Change of bank details can be done:
This is the exemption is for employees that receives foreign employment income for services rendered outside of South Africa, provided that all the requirements are met.
Read more →
Exempt or non-taxable income refers to certain types of income, which is not subject to income tax.
Read more →
1. This is the proceeds i.e the value that your shares were sold for. This amount needs to be entered as proceeds in the capital gains section of your tax return.
2. This is the base cost i.e the costs attached to the sale of your shares. This amount needs to be entered as the base cost in the capital gains section of your tax return....
Read more →
With “flexible” employment being the new buzzword, more and more people are working part or all of the week from an office in their home.
Read more →
Have you been the lucky recipient of a gift or donation from a generous family member or friend? Perhaps they struck it lucky on the Lotto and decided to share their winnings with you!
Or maybe you're the giving type and have donated cash, shares or even property to someone you felt deserved a little boost.
Irrespective of whether you're the giver or receiver of a donation or gift, it's good to understand donations from a tax perspective, and how to declare these to SARS.
Ready to find out?
Let's get started.
Read more →
As a nation, South Africa does rather poorly on the savings front. With the majority living near or below the breadline, there’s not much to save when you’re more concerned with just getting through the month. Our high levels of consumer-debt, combined with little in the way of personal savings, means we become financial burdens on the government in the long-run...
Read more →
When pursuing a business activity, trade or renting out a property, you’re no doubt doing so to make some money, but the reality for self-starters
Read more →
You’ve been up since 4am in order to catch yet another red-eye flight for a 9am business meeting - 1,400km away - and you’re already onto your third coffee by the time you board the plane.
Read more →
