Sole Proprietors and Partnerships

Sole Proprietors and Partners are automatically Provisional Taxpayers.

These are some of the services that we offer to Sole Proprietors and Partnerships

  • Assisting with registration as a Taxpayer
  • Submitting Provisional Tax Returns
  • Submitting Arrear Income Tax Returns
  • Ensuring that Interest and Dividends are properly declared
  • Submitting Annual Income Tax Returns
  •           ○ Ensuring that Interest and Dividends are                 properly declared
  •           ○ Reduction (or elimination) of the tax                        attributable to the Fringe Benefit for the                 use of a Company-owned vehicle, if                         applicable
  •           ○ Ensuring that expenses are fully claimed                 for:
  •           ■ Travelling Allowances
  •           ■ Subsistence Allowances
  •           ■ Claiming expenses against commission                 for commission earners
  • Submitting Objections to Income Tax Assessments, if necessary
  • Obtaining Tax Clearance Certificates
  • Drawing Income and Expenses Statements and Balance Sheets
  • Registering for and submitting Statutory Returns
  •           ○ PAYE/SDL/UIF
  •           ○ Submitting bi-annual Reconciliations of PAYE/SDL/UIF Returns
  •           ○ VAT
  •           ○ Workmens’ Compensation (Compensation for Occupational Injuries and                   Diseases ACT (COID))
  • Drawing up Employment Agreements for your employees.
  • Registering employees for Income Tax if not already registered
  • Issuing monthly payslips

SARS Requests for Documents to verify Details

SARS eFiling system is programmed to randomly request that a taxpayer uploads documents that relate to information provided in their Tax Return for verification of those amounts. It is essential to upload all the related documents correctly. If corrections are necessary afterwards, the taxpayer will have to submit an objection.

Relax and let us submit your Return for peace of mind, even if your Return is chosen randomly for verification.

Provisional Tax Returns

Sole Proprietors and Partners are automatically classified as Provisional Taxpayers. Provisional Taxpayers do not pay more tax on their taxable income than any other taxpayer. They make 2 advance tax payments per year if their estimate of taxable income for the 12-month period is sufficient to attract tax.

This means that they must submit 2 Provisional Tax Returns every 6 months in addition to their Annual Income Tax return. The first Return must be submitted by 31 August and the second Return must be submitted by the last day of February.

Any provisional tax payments made will reduce the amount of tax payable when assessed after submitting their Annual Income Tax Return.

A Provisional Tax Return is a one-page Return in which the taxpayer provides an estimate of taxable income for the full 12 months of the tax year. There are complex rules for the accuracy of the estimate, and these rules can be a minefield. If an estimate is lower than the rules allow, SARS charge a penalty and interest for under-payment when the assessment for the annual Income Tax Return is issued. Penalties may also apply when a Return is submitted late.

Our service is all about providing you with convenience and peace of mind so that you avoid the possibility of paying penalties and interest.

If you need more details about how Provisional Tax Returns work, click here.

Declaring Interest and Dividends

Ensure that you have all relevant documents with the exact amounts available, in case SARS choose to verify your Return. Also be sure to enter the amounts in the blocks with the correct code.

Let us complete your Income Tax Return to ensure that your investment amounts are inserted against the correct codes. This will ensure that you do not pay unnecessary income tax and that, if your Return is randomly chosen for verification, it will not result in changes to your Income Tax Return being necessary.

Travelling

Ensure that you use a logbook or log sheets on your PC to record your business travel. Opening and closing odometer readings are required by SARS for each day of business travel. We supply log sheets on request to our clients.

Let us complete your Income Tax Return to ensure that your travelling claim is correctly filled out for the best tax saving.

Medical expenses

Are you claiming for everything possible in your Income Tax Return. In our experience, there are many taxpayers who are not.

Business Income and Expenses and Balance Sheet

Providing your business income and expenses and Balance Sheet in your Income Tax Return can be a challenge for those businesses that do not maintain complete accounting records. We can assist these businesses and also provide bookkeeping services if required.

Submitting Objections

There are times when we disagree with an Assessment issued by SARS. We assist by lodging Objections in the manner prescribed by SARS.

Arrear Income Tax Returns

Although the submission of arrear Income Tax Returns can be an inconvenience, especially when a search is necessary for some relevant document, it can lead to the pleasant surprise of a tax refund.

Let us bring your Tax Return submissions up-to-date for peace of mind.

Statutory Returns

Returns for PAYE/UIF/SDL, VAT, Workmens’ Compensation require significant knowledge and time to prepare. You have peace of mind when you appoint us to complete these Returns on behalf of your business.

Tax Clearance Certificates

For those taxpayers who require a Tax Clearance certificate, for example, for a Tender, it is essential to have ALL tax Returns (for Income Tax, VAT, etc.) submitted with all payments up-to-date. Only then can a Tax Clearance certificate be issued by SARS.

Let us bring your Tax Return submissions up-to-date and obtain your Tax Clearance Certificate.

Tax Residency

Determining tax residency is usually a complex task requiring specialist attention. After the lifting of Covid-19 restrictions, many people now work from home. Some residents of South Africa have chosen to work from outside South Africa’s borders. Some residents of other countries have moved to South Africa. Many of these tax payers are not sure of which income they must include in their South African Income Tax Returns; or whether the submission of a South African Income Tax Return actually applies to them. This section applies to these tax payers.

Income Tax is payable on income from world-wide sources, which is now the case in most countries. It follows that income from both local and world-wide sources must be declared. However, this does not mean that foreign income is automatically taxed in South Africa – it depends on a number of factors. One of those factors is whether the individual is regarded as tax resident in South Africa or not, which is where the complexity usually arises: a South African tax payer resident in a foreign country or an ex-patriate tax payer resident in South Africa does not mean that the individual is automatically regarded as tax resident in their country of residence. Tax residence and residence as applies to moving to and becoming resident in a foreign country are entirely different from each other.  We can assist in making this tax residence determination that now forms part of the declaration on Income Tax Returns issued by SARS.

It is noteworthy that SARS have completed Agreements with many foreign countries for the exchange of information that affects tax. This means that third-parties in these countries supply data concerning income earned and assets owned in those countries to SARS. Penalties for non-disclosure in Income Tax Returns can be exceedingly high and are actively enforced by SARS. Overall, there is an important need to ensure that tax residency has been correctly determined and declared in your Income Tax Return as there could be significant tax implications for the tax payer. We can assist you in the determination of your tax residency.