Provisional Income Tax Calculation and Payment

What is Provisional Tax?

  • Provisional tax is not a separate tax.
  • It is a method of paying tax due. It helps the taxpayer not to make one large payment, but rather to spread the liability over the year of assessment;
  • It requires the taxpayers to pay at least two amounts in advance during the year of assessment, which are based on estimated taxable income.

Who pays Provisional Tax?

  • Provisional tax is paid by people who earn any other income other than salary. This includes:
  • Investment income:
  • Income from Interest;
  • Income from Investments

It is paid by people who earn income other than a salary / traditional remuneration paid by an employer.
If you earn non-salary income,

  • rental income from a property,
  • interest income from investments or
  • other income from a trade or small business you run, you will be a provisional taxpayer.

Exemptions on this rule are:

Natural Persons, excluding sole proprietors, are exempt from provisional tax if:

  • taxable income does not exceed the tax threshold;
  • if taxable income derived from interest, foreign dividends, rental income from letting immovable property and remuneration from a foreign employer (not registered for PAYE), does not exceed R30 000

How do you pay Provisional Tax?

You normally pay provisional tax twice a year.

  • Your first payment is  6 months after the start of the financial year (30 September) and
  • your second payment is 28 February.
  • The 3rd payment is made when you finalize your tax return and see that you still owe SARS tax;

Penalties for Provisional Tax

  • Late penalty if you declare and pay your tax later than the due dates, 28 February and 30 September;
  • under estimation penalty – You submit your two provisional tax returns and those two returns must be equal to your total tax return. If however you submit your final return and there is a 10% difference between the provisional tax returns and your final tax return, SARS will penalize you as well.

Please contact us if you need help with Provisional Tax Returns. Let us help you and hopefully we will be able to ensure that you are not penalized.

Please contact us for a free non-obligatory consultation and quote.

 

Personal Income Tax Returns

Who need to pay Personal Income Tax?

In general terms everybody that earns a salary, commission, or any other form of income must pay Personal Income Tax.

You don’t need to pay Personal Income Tax if:

if you earn under R350 000 for a full year from one employer (that’s your total salary income before tax) and have no other sources of additional income (for example, interest or rental income) and no deductions that you want to claim (for example medical expenses, travel or retirement annuities), then you don’t need to submit a return.

The tax season normally opens on July and closes in November when efiling is used.

When you want to submit a return you must have all the necessary document to complete a return.  The following documents is used to submit a return:

 

  • RP5/IT3(a) certificate(s)  from your employer or pension fund
  • IT3(b) certificates for investment returns
  • Financial statements, if applicable e.g. business income
  • Medical aid contribution certificates and receipts
  • ​Retirement annuity fund certificates
  • Certificates you received for local interest income earned
  • Logbook and other documents in support of business travel expenses
  • Completed confirmation of diagnosis of disability form (ITR-DD), if applicable
  • Any other relevant income and deduction information.
  • Bank account details

How do we submit your tax returns and how much will it cost?

  • First we register you on our efling database that is connected to SARS;
  • You send us all the necessary documents;
  • We complete your tax return;
  • You pay us our fee;
  • we submit your returns and follow up with SARS;
  • if necessary we submit your documents to SARS and follow up with them;
  • if we not happy with their assessment we can lodge an objection with them.

Our services stops when you have settle your payment with SARS or SARS have refunded you.

If you want peace of mind with your tax, let us take the TAX out or Taxation and handle your tax return for you.

Please contact us for a non obligatory consultation and give you a quote for the submission of your Tax Return

 

 

Commission Income and Tax

Commission Income Earners and Tax

Commission earners are allowed to deduct extra expenses if commission income is over 50% a year.

Commission earners are allowed to deduct following expenses:

  • Motor Vehicle expense (you must have a logbook);
  • Entertainment expenses;
  • Membership fees;
  • Home Office Expenses;
  • Accounting fees;
  • Travel & Accommodation (if you can prove it is work-related);
  • Computer Expenses

We supply a special dedicated service for them:

  • We keep your books up-to-date on a monthly basis;
  • Your data is securely stored in the cloud;
  • Your Provisional and Annual Tax Returns are filed;
  • Your tax directive is reviewed on a constant basis and can be adjusted as soon as you fall into a higher tax bracket.

Fill in the form and ask us for our great monthly offer to keep your tax up-to-date.

 

Tax Documents

What Documents do you need for a Tax Return?taxCon1

  • Your Employees tax certificates  (IRP5 & IT3a);
  • interest and dividend income certificates;
  • Commission Received documentation;
  • Medical aid certificates
  • Medical expenditure paid out of own pocket;
  • Retirement Annuity contribution certificates;
  • Logbook to claim against travel allowance or use of own motor vehicle;
  • Capital gains tax transactions;

Company Registration

Company Registration

Want a new company?  We can help you!!

  • we register if for you;
  • get an income tax number for you;
  • apply for UIF, PAYE, ect;
  • help you get a tax clearance certificate;
  • issue a BEE sertificate for you

Company Registration packages

  • Quick Registration in 48 hours;
  • Name Reservation;

Cost range from R600 to R900

www.cipc.co.za

 

For more information please arrange a complimentary consultation with one of our consultants or email us at info@casfin.co.za

 

Small Business Corporations and Tax

Small Business Corporations are  tax at a  lower rate as other companies and have faster deprecation periods for some assets.

Who qualify as a SBC?

  • You must be a company;
  • Gross income must not exceed R14 million per annum;
  • More then 80% of your income may not be from one client;
  • No more then 20% of income may consist of Investment Income or rendering a personal service:
    • performed personally by any person who holds interest in company;
    • company does employ not 3 or more full-time employees throughout the year of assessment;
    • any service in field of accounting, actuarial science, architecture, auctioneering, auditing, broadcasting, broking, commercial  art, consulting, draftsmanship, education, engineering, entertainment, health, IT, journalism, law, management, performing, real estate, research, secretarial services, sport, surveying, translation, valuation or veterinary science;

The tax rates for SBC is as follows

SBC tax rates for financial years ending on any date between 1 April 2016 and 31 March 2017:

Taxable income (R) Rate of Tax (R)
0 – 75 000 0% of taxable income
75 001 – 365 000 7% of taxable income above 75 000
365 001 – 550 000 20 300 + 21% of taxable income above 365 000
550 001 and above 59 150 + 28% of taxable income above 550 000

SBC tax rates for financial years ending on any date between 1 April 2015 and 31 March 2016:

Taxable income (R) Rate of tax (R)
0 – 73 650 0%
73 651 – 365 000 7% of the amount above 73 650
365 001 – 550 000 20 395 + 21% of the amount above 365 000
550 001 and above 59 245 + 28% of the amount above 550 000

We supply you with the full range of bookkeeping and tax solutions for your Business, for more info contact us for a free non obligatory consultation or email us info@tax-returns.co.za

 

 

 

TAX Compliance

Tax Compliance ensure that you meet all the legal obligations regarding your Income Tax returns

Our services includes following:

  • Income Tax Planning and Structuring;complaince
  • Tax Directives;
  • Register tax types;
  • Completing your Tax Returns and submit it;
  • Communicate with SARS on your behalf;
  • Lodge objections and appeals with SARS;
  • Help arranging  Payment Schedules;
  • Obtaining Tax Clearance Certificates;

For more information please arrange a complimentary consultation with one of our consultants or email us at info@tax-returns.co.za

Sage One – an Affordable Cloud Based Bookkeeping Solution

 

Are  you looking for an affordable and easy to use Online Bookkeeping Solution?

As a Sage Partner we are proud to offer you Sage One, an Integrated Cloud based Bookkeeping Solution that replace conventional Accounting Software like Pastel Partner and Quickbooks.

Sage One offers the following features:

  • Easy to use, No Software Installations Required
  • Sage Cloud Centralises your data and can be accessed from anywhere
  • Your accountant has Realtime Access to your accounting data
  • The Mobile App permits for invoicing and quoting on the go
  • Easily Import your bank statements into your Sage One bank account
  • Your Data is Safe,  protected by a high security encryption algorithm
  • Month to Month Subscription Plan, No Upfront Payments Needed

Click the link below to try a free 30 day evaluation

 https://accounting.sageone.co.za/SignUp.aspx?ProductReferralReference=R012135

For more information please arrange a complimentary consultation with one of our consultants or email us at info@tax-returns.co.za

 

 

 

 

Logbooks

Logbook

If you receive a travel allowance you must keep an accurate logbook.

What must be included in your logbooks

  • Date of travelling;
  • Opening kilometres;
  • Closing kilometres;
  • Closing kilometres;
  • Total kilometres
  • Private kilometres;
  • Business kilometres;
  • Business travel details;
  • Actual fuel and oil costs;
  • Actual repairs and maintenance cost.

            Sars Logbook

 

 

 

Bookkeeping Services

Bookkeeping Services is the backbone in any entity. It’s main purpose is track all the transactions and then to give you a set of financial statements that show you’re financial position at a given moment.

We supply you with a all Bookkeeping Services as well as Business Support Services. From the moment that you decided to start and to register your business, setting up a bookkeeping system.

We keep your books up to date, supply you with monthly management accounts till the finalizing of your financial statements and the signing off of the statements.

Not only do we do your bookkeeping services but we also do your payroll and supply your employees yearly with IRP5 certificates.

• Business Bookkeeping Services
• Payroll Services
• Monthly Management Accounts
• Reconciling of Bank Statements
• Financial Statements
• Business Support Services