Landlords

Landlords and persons who receive rental income are automatically Provisional Taxpayers.

  • Assisting with registration as a Taxpayer
  • Submitting Provisional Tax Returns
  • Submitting Arrear Income Tax Returns
  • Submitting Annual Income Tax Returns
  •           ○ Ensuring that Interest and Dividends are                 properly declared
  •           ○ Ensuring that Medical expenses are                         claimed correctly and in full
  •           ○ 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 up Income and Expenses Statements and Balance Sheets

Rental Income and Expenses

Providing your rental income and expenses in your Income Tax Return can be a challenge for those Landlords that do not maintain complete accounting records. We can assist these Landlords and also provide bookkeeping services if required, including to Bodies Corporate.

SARS Requests for Documents to verify Details

SARS eFiling system is programmed to randomly request that a taxpayer uploads documents for verification that relate to information provided in their Tax Return. It is essential to upload all the related documents correctly.

SARS eFiling system is programmed to randomly request that a taxpayer uploads documents to verify information provided in their Tax Return. It is essential to upload all the related documents correctly. If corrections are necessary afterwards, the taxpayer will have to submit an Objection. Let us complete your Income Tax Return, make all the claims that are available to you and submit your documents for verification, if necessary. This will help to ensure that you pay the least amount of tax and enjoy peace of mind.

Our service ensures that you have the least amount of inconvenience or worry. Let us submit your Return for peace of mind.

Provisional Tax Returns

Landlords 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.

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.