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Invoices – A must do when creating invoices

South Africa operates a VAT system whereby businesses (vendors) are allowed to deduct the VAT incurred on business expenses (input tax) from the VAT collected on the supplies made by the business (output tax). The most important document in such a system is the tax...
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What is Non-Taxable or Exempt Income?

“Non-Taxable Income” or “Exempt Income” is income which you receive which you are allowed to exclude from your Gross income and in so doing you do not get taxed on it. Some Examples include: Dividends received from a South African source South African interest...
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SARS VAT Audits – Tax Administration Act

The Tax Administration Act (TAA) Section 41 allows SARS to select you for an audit by: 1.       By random selection; 2.       On a cyclical basis; or 3.       With an audit/verification.
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Vat Categories

Category A: Bi-Monthly - Un-even Months 2 month period ending on uneven months (January, March, etc). Applicable to vendors with taxable supplies not exceeding R 30 million in a 12 month period, or farmers with taxable supplies that exceed R 1.5 million in a 12 month...
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Provisional Taxes

FROM
R400/sub

Our Tax service offerings vary from individuals to large companies, including alternatives such as provisional tax and capital gains tax (CGT).

Managing your taxes shouldn't be a nightmare and a dreaded event of the year. Rather check out the different sections below about some specifically mentioned services or Contact us today to assist and manage it for you

Provisional Income Tax

Any taxpayer who receives income other than a salary is a provisional taxpayer for example rental income, interest income and foreign dividends exceeding R 20 000.

The amount of provisional tax is worked out on the estimated taxable income for the year of assessment as follows:

1st Payment:

  • Half of total estimated tax for the full year
  • Less employees tax for this period (6 months)
  • Less allowable foreign tax credits for this period (6 months)
  • Due date: 6 months after the start of the year of assessment

2nd Payment:

  • Total estimated tax for the full year
  • Less employees tax for the full year
  • Less allowable foreign tax credits for the full year
  • Less the first provisional tax payment
  • Due date: the last day of the year of assessment

3rd Payment:

  • Total tax payable for the full year
  • Less the employees tax paid for the full year
  • Less any allowable foreign tax credits for the full year
  • Less the first and second provisional tax payments
  • Due date: Voluntary payment within 7 months after the year of assessment if the financial year end is February or 6 months after the year of assessment in any other case

Directors of private companies and members of close corporations are regarded as employees. They are not considered to be provisional taxpayers unless they have income that falls within the scope of provisional tax income.

An IRP6 must be submitted for the 1st and 2nd period even if the tax due and payable is Rnil. If the taxable income is Rnil no return needs to be submitted.

Taxable Capital Gain are excluded when calculating the basic amount for provisional tax.

Managing your taxes shouldn't be a nightmare and a dreaded event of the year. Rather Contact us to assist and manage it for you.