Avoid Interest and Penalties, submit your Provisional Tax Return

Provisional tax payments must be made by natural persons on or before 31 August each year. This means that a provisional taxpayer must, during every period, submit an estimate of their total taxable income which will be made in that year of assessment. If the taxpayer also earns a salary, the PAYE deducted during the year of assessment will be […]

Submit your 2017 Income Tax Return and avoid penalties

Annual Tax season is here, and Income Tax return submissions began 1 July 2017. We’ve taken the liberty of answering frequently asked questions individuals may have. The South African Revenue Service (SARS) has allocated different submission deadlines dependant on the manner of the submission. What are the submission deadlines for Income Tax Returns? Please pay careful attention to the deadline […]

Tax implications of international branches

Irrespective of whether a South African company is expanding its business offshore, or whether international businesses set up shop in South Africa, companies trading internationally are often confronted with the complex tax implications for doing so. This article explores the tax implications linked to international branches of a company specifically; it does not consider the scenario where a corporate group […]

Misuse of assessed losses

An assessed loss for income tax purposes is a potentially valuable asset:  it represents past losses made by a taxpayer which is able of being carried forward to subsequent tax years against which future taxable profits are able of being set off.  The set-off of historic losses – in the form of an assessed loss – against existing taxable income […]

The general anti-avoidance rules

The Income Tax Act, 58 of 1962 (‘Income Tax Act’) contains various specific anti-avoidance rules aimed at preventing the abuse of certain specific sections in the Income Tax Act. However, over and above these specific anti-abuse provisions, the general anti-avoidance rules (‘the GAAR’) would also find application to cover further potential and unforeseen loopholes, or abuse of beneficial tax regimes, […]

Tax season 2016: Non-provisional taxpayers’ deadline

Many of our clients are not registered for provisional tax, nor are they required to be registered. These non-provisional taxpayers should however take note thereof that their annual income tax returns (for the 2016 year of assessment which ended on 29 February 2016) are due shortly, and not only on 31 January 2017 as is the case for natural person […]

Dire provisional tax penalties on underestimation of income

Provisional taxpayers are generally those taxpayers who earn income from sources other than a salary. In other words, PAYE is not deducted from these other sources of income on a monthly basis and paid over to SARS. As is the case with PAYE, provisional tax presents a cash flow mechanism to National Treasury through which to gather prepayments of an […]

Proof required for Income Tax Returns – Individuals

Following the conclusion of your tax year, documents will be issued to you that must be retained for tax purposes. The following documents should, if applicable, be submitted to the accountant who completes your tax return and should be available if the South African Revenue Service (SARS) requests them: 1. IRP5 and IT3 certificates IRP5 and IT3 certificates reflecting salary, […]