SARS eFiling Profile Changes

SARS eFiling Profile Changes

The South African Revenue Service (SARS) has introduced a new security measure for individual taxpayers using the eFiling system. Starting from 22 November 2024, SARS will require all individual taxpayers to register a cellphone number to their eFiling profile and enter a One Time Pin (OTP) for certain actions. This new requirement aims to enhance the security of your tax profile and protect your personal information.

Read More

Understanding Record-Keeping Requirements for Individual Tax Returns in South Africa

Understanding Record-Keeping Requirements for Individual Tax Returns in South Africa

Proper record-keeping is essential for accurate tax reporting and compliance with the Tax Administration Act and other relevant tax laws in South Africa. Maintaining accurate and complete records is crucial for a few reasons: It substantiates the information reported in your tax returns, It enables you to respond effectively to any queries or audits from SARS, and it provides a clear financial history, which is beneficial for personal financial management and planning.

Read More

Dealing with a VAT Audit

Dealing with a VAT Audit

We understand that the thought of a VAT audit can be daunting, but it needn’t be. With the right preparation and a thorough understanding of the process, it can be a smooth and stress-free experience.

In this blog, we will provide you with an overview of why a VAT audit happens in South Africa, what the process entails, and how we ensure that all necessary documents are ready and available from the start.

Read More

Understanding the Importance of Disclosing Digital Wallets and Crypto Accounts to SARS

Understanding the Importance of Disclosing Digital Wallets and Crypto Accounts to SARS

With the growing popularity of cryptocurrencies, it's crucial to understand how these assets are treated by the South African Revenue Service (SARS) and why you need to disclose them in your yearly tax return.

SARS requires that any income or gains from crypto assets, including digital wallets and crypto accounts, be disclosed in your tax return. This includes exchange tokens (such as Bitcoin), non-fungible tokens (NFTs), and utility tokens.

Read More

Understanding Dividend Taxation in South Africa When You Have a Company

Understanding Dividend Taxation in South Africa When You Have a Company

South Africa has a Dividends Tax regime, which taxes dividend income at a flat rate of 20%, regardless of the amount. One crucial aspect to keep in mind is that dividends are paid out of a company's profits after company taxes have been paid. In South Africa, the standard corporate tax rate is 27%. This means that before any dividend is declared, the company must first pay tax on its profits at this rate.

Read More

Tax Compliance Pin Request for Companies/Individuals

Tax Compliance Pin Request for Companies/Individuals

A Compliance Tax Pin from SARS (South African Revenue Service) is a digital tool that allows individuals or entities to prove their tax compliance status to third parties. It is essential for various reasons, including: Tender Applications: When applying for government or private tenders, it is often required to show proof of tax compliance. A valid compliance tax pin provides quick verification.

Read More

Understanding the Two-Tier Retirement Pot System in South Africa and the Tax Implications of Withdrawals

Understanding the Two-Tier Retirement Pot System in South Africa and the Tax Implications of Withdrawals

As you continue to plan for your retirement, it's crucial to understand the two-tier retirement pot system recently implemented in South Africa and how withdrawals from your retirement fund can affect your tax obligations.

Starting September 1, 2024, contributions will be split into savings and retirement components at a ratio of one-third and two-thirds, respectively. The two-tier retirement pot system was introduced in South Africa to provide greater flexibility and security for individuals when they retire.

Read More

Protect Your Income and Your Peace of Mind: A Vital Tip for Self-Employed Professionals in South Africa

Protect Your Income and Your Peace of Mind: A Vital Tip for Self-Employed Professionals in South Africa

As a self-employed professional in South Africa, your business is your livelihood. Whether you're a consultant, freelancer, tradesperson, or small business owner, the income you earn is dependent on your ability to work. But have you ever considered what would happen if, due to an unforeseen illness, injury, or accident, you were suddenly unable to work?

Read More

Executive and Non-executive Directors: Tax Matters

Executive and Non-executive Directors: Tax Matters

Written by Roulon du Toit CA (SA)

Both executive directors and non-executive directors (NEDs) may earn income from the companies in which they hold office. However, the tax treatment of these earnings—and the related expenses incurred—vary greatly between these two types of directors. In 2017, SARS released two Binding General Rulings (numbers 40 and 41) which provided more clarity on the treatment of NEDs.

Read More

Donations To Public Benefit Organisations

Donations To Public Benefit Organisations

Written by Roulon du Toit

A lot of South African taxpayers are unaware that they could reduce their taxable income if they made donations to Public Benefit Organisations. When a South African resident makes a donation, it is important to realise that there are tax consequences which may lead to either an increased tax burden or tax relief.

First, it is important to note that donating may attract a Donations Tax liability. This is something that taxpayers are unaware of and can be quite costly. We will not be exploring this in this blog, but be aware that if you donate cash (or any other asset) there may donations tax, especially if the value exceeds R100 000. For example, if you purchase a car and then transfer ownership to your child it will likely attract Donations Tax.

Read More

Turnover Tax: What You Need to Know

Turnover Tax: What You Need to Know

If you are registered as a company or sole proprietor in South Africa, you can choose to pay either standard small business income tax rates or turnover tax.

Turnover tax is a simplified tax rate aimed at reducing administration for small businesses with an annual turnover of less than R1 million. If your turnover goes over R1 million, then you will need to register for VAT and pay tax on the standard tax rates.

Read More

How to Decrease Your VAT Bill in South Africa

How to Decrease Your VAT Bill in South Africa

When it comes to decreasing your VAT bill in South Africa, it's crucial to adhere strictly to legal methods and maintain meticulous accounting records. While it may be tempting to look for shortcuts, any attempt to evade taxes illegally is not worth the risk and can lead to severe penalties.

If your business's turnover exceeds one million rand in a 12-month period, VAT registration is mandatory. Ensuring you claim the maximum possible inputs can significantly reduce your cash outflows.

Read More

Changes in Filing Dates for Trusts: A New Chapter in South Africa's Tax Season

Changes in Filing Dates for Trusts: A New Chapter in South Africa's Tax Season

On June 4, 2024, the South African Revenue Service (SARS) made a significant announcement regarding the 2024 income tax return filing dates for both individual and trust taxpayers.

This update marks a big shift, particularly for trust taxpayers, who will now experience a dedicated filing season distinct from that of individual taxpayers.

Traditionally, the filing season for trust taxpayers in South Africa coincided with that of individual taxpayers.

Read More

Beneficial Ownership Register Explained

Beneficial Ownership Register Explained

Here’s a date for your diary - 24th of May, 2024. Now, that’s a rather important date if you hold a 5% or greater stake in a company in South Africa as it’s the last date to register under the newly introduced Beneficial Ownership Register. Failure to register if you should will be seen as a breach of the Companies Act and could result in fines being levied.

So what’s this all about, and what is Beneficial Ownership?

Read More

Preparing for Tax Season 2024/2025: A Friendly Reminder for South African Taxpayers

Preparing for Tax Season 2024/2025: A Friendly Reminder for South African Taxpayers

As the start of a new tax year approaches, it’s time to shift our focus towards effective tax planning and ensuring a smooth filing process when the time comes.

For South African taxpayers, this means being proactive about retirement annuity contributions and keeping track of important documents as well as remembering to track your travel if you receive a travel allowance.

With filing season typically kicking off in July, now is the perfect time to get organised and stay ahead of the game.

Read More