We are an Accounting firm which helps with bookkeeping and all related services, tax submission and company registration and maintenance.
When buying a property, for rental or personal residence, you need to consider which structure will be best for you. Our circumstances are all different, so there is no one-size-fits-all solution.
Continue reading “Property Ownership – Company, Trust or Individual?”
If you contribute to a Medical Aid this tax year (i.e. 2018/2019) you will receive a fixed monthly tax credit of R310 for you as the primary member, a further R310 for your first dependent and R209 for each of your additional dependents.
It sounds easy, a profit is taxed while a loss leads to a refund. Unfortunately, not! Where a rental property makes a profit, an individual has to assess the profit of the trade between March – August and pay an estimated amount of provisional taxes to SARS. This is repeated during February and any over-payment is refunded to the taxpayer while any underpayment could be subject to a penalty of up to 20% of the amount underpaid as well as interest.
For those that are being taxed on their interest income consider a contribution to a tax-free investment. Currently, a person may contribute up to R36 000 per annum and any income earned within this product will be free of taxes.
A travel allowance is when an employer pays an allowance to an employee for business kilometers travelled on behalf of his employer. In practice, employers often give a fixed amount monthly to the employee and may or may not issue the individual with a fleet or petrol card. In the case of a fixed allowance only, the amount paid during the tax period would appear under code 3701 on the IRP5. Where a petrol card is issued to the employee, the amount of petrol would also be added to the amount. To make sure this part is clear, let’s use an example:
The CIPC requires all private/ proprietary companies and close corporations to file their annual returns on an annual basis, within a prescribed time period. The purpose for the filing of such annual returns is to confirm whether a company or close corporation is still in business/trading, or if it will be in business in the near future. The annual return may be regarded as a type of annual “renewal” of the company or close corporation registration.
Therefore, if annual returns are not filed within the prescribed time period, the assumption is that the company or close corporation is inactive, and as such CIPC will start the deregistration process to remove the company or close corporation from its active records. The legal impact of the deregistration process is that the juristic personality is withdrawn and the company or close corporation ceases to exist.
Continue reading “CIPC Annual Returns – All you need to know!”
What is an ITR12/ Individual tax return?
An ITR12 return is an income tax return for an individual which stipulates all the income and allowable deductions claimed by the taxpayer for a year of assessment.
An ITR12 or Income Tax Return is a form that SARS requires all individuals (including provisional taxpayers) to complete and submit to SARS once every year. The form is used to declare your incomes and expenses so that SARS can calculate how much tax you need to pay, or how much of a tax refund SARS needs to pay you.
Continue reading “Income Tax Return – Individuals (ITR12)”
We feel it is our duty to assist you with legally maximizing your tax refunds by utilizing all the available SARS guidelines. Firstly let’s find out who should pay tax and who should not?
You are liable to pay income tax if you earn more than: