Thinking about the end of the tax year does tend to induce a sense of mild dread; what will SARS want? When will they want it? Will this ever end?! 😆

While it can feel onerous, there are some things you can do before the end of the tax year which are very much to your benefit, rather than the wellbeing of the tax authorities. One of the biggest of these is topping up your retirement fund or pension fund before the end of the tax year in South Africa (which runs from 1 March to the end of February).

In South Africa, managing a (Pty) Ltd company involves understanding tax obligations and benefits as outlined by the South African Revenue Service (SARS). One of the questions that arise in the realm of tax deductions involves the eligibility of claiming expenses for reading glasses. This blog delves into whether reading glasses can be considered a deductible expense under current South African tax laws for (Pty) Ltd companies.

In South Africa, the rules for deducting travel expenses for directors of small proprietary limited companies (Pty Ltd) are governed by the South African Revenue Service (SARS).  These rules can be quite specific and are subject to change, so it's always best to consult the latest SARS guidelines or a tax professional. However, we can provide a general overview.

Well, that’s Christmas and New Year done, and we’ve all had plenty of time to clear our heads and face up to 2024! So, Happy New Year, and let’s talk about… Tax!

We know - it’s not the most thrilling subject, but a failure to deal with it in a timely manner will guarantee you interesting times as SARS starts asking pointed questions.

So, what are the filing dates for 2024? Fortunately for all of us, these are no secret, SARS posts these on its website, but here’s an extract of the relevant information:

It was lovely having Esmerelda visit the Anlo Financial Solutions Edinburgh office in September. Lots of strategy meetings happened and lots and lots of walking through the beautiful city. If you don’t know, Esmerelda runs the Anlo Financial Solutions Johannesburg office and Annja runs the Anlo Financial Solutions Edinburgh office.

Please see a quick list of expenses to remember which can qualify as a tax deductible. If you have incurred the expenses in your personal capacity, then still let us know about these expenses. If you have the invoice, we can still include it.

Running a business comes with its fair share of expenses and it is important to understand when these expenses can be used against income as a valid business tax deductible expense.

Deducting the right expenses can significantly reduce your taxable income and, consequently, your tax liability.

In this blog, we will look into the deductibility of various business expenses, focusing on repairs and maintenance, entertainment, staff welfare, and gifts.

The introduction of Persons with Significant Control (PSC) regulations by the Companies and Intellectual Property Commission (CIPC) and the alignment of tax reporting with the South African Revenue Service (SARS) is a significant step toward fostering a more transparent and accountable business environment in South Africa.

Business owners and operators need to be aware of their responsibilities under these regulations, including the creation and maintenance of accurate PSC Registers, timely submission of information to the CIPC, and consistent reporting to SARS.

Adherence to these regulations not only ensures compliance with the law but also contributes to the integrity and credibility of the business community in the country.

Happy new tax year our lovely Anlo community. Everyone worked really hard to get all the 2021/2022 tax returns submitted on time as well as the submission of the provisional tax returns that was due end of February.

We start a new tax year, and working towards getting financials and returns calculated early so that we stay on the good side with SARS but also have some time to do some cashflow planning.

If your situation has changed or you have moved or have new contact details, please get in touch so that we can update your details where it is appropriate.

How will you know if you are a provisional taxpayer?

If you earn any other income apart from your salary i.e., consulting fee income, high interest income, capital gains or rental income etc. you should submit a provisional tax return. All entities/companies are registered for provisional tax and provisional tax should be submitted.

The 2nd provisional tax is based on the same accounting period as the August 2022 provisional tax calculation. So, if you had to pay provisional tax in August 2022, you will know if you are a provisional taxpayer.

SARS is doing auto assessments on taxpayers based on the information that they have received from 3rd parties i.e., banks, medical aids, investment companies etc. If this is your only source of income and you don’t have additional deductions, then you don’t have a problem and it is great that your tax return has been filed.

In May we celebrated Esmeralda’s birthday the Anlo way, with lots of cake, sparkles and love! If you ask her, she is 37 years old but to us, she doesn’t look a day older than 21, but with the wisdom and leadership of a life well lived. Thank you Esi, for everything you do and here is to another wonderful year for you.

We also raised money for slipper day at Anlo and here is a photo.

Annja and Roulon recently went to Accountex in London and it was amazing seeing the new developments that have happened since 2019, when we last visited. Regulations and governing bodies have made compliance for accountants stricter, but the standard of the accounting qualification is just getting better.

Now more than ever, the focus is on accountants helping businesses grow and helping the economy recover from what has been a very long hard period in everyone’s lives.

Esmerelda and I recently took ourselves on a week sabbatical to Dubai with our little girls, and it was AMAZING! Thank you to everyone that was patient with us during this time. We planned this break probably a year ago, with the hope that it will give us something to look forward to, and because of COVID and everything we kind of forgot about it because there was a chance we could not go, and we did not want to get our hopes up.

But we did manage to go, and it was so definitely needed. The break from the routine that has become a burden over the last 2 years was exactly what the doctor ordered. We swam in the sea and talked about the business’s future, about our hopes and dreams for ourselves, our families, and our business.

Written with Roulon du Toit

During the 2020 Budget Review, the government indicated that it intended to decrease the corporate tax rate by one percentage point from 28% to 27%. It has now been confirmed that this decrease will take place, effective for tax years ending on or after 31 March 2023. In other words, this will apply to any company whose tax year commences on or after 1 April 2022.