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 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 expenses
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 free on request to our clients. Let us complete your Income Tax Return to ensure that your travelling claim is correctly filled out to ensure that you pay the least amount of tax.
Subsistence (Living Out Allowance)
The dates and places of the nights that you were away from home on business are required, in order to claim against your Subsistence Allowance for a reduction of your income tax. Claiming against a Subsistence Allowance can sometimes be confusing. If necessary, let us complete your Income Tax Return and ensure that you pay the least amount of tax.
Medical expenses
Are you claiming for everything possible in your Income Tax Return. In our experience, there are many taxpayers who are not. Let us complete your Income Tax Return and make all the claims that are available to you, to ensure that you pay the least amount of tax.
Expenses against commission
Expenses can be claimed against commission under certain circumstances. The more obvious expenses to claim are amounts that have been actually incurred. The less obvious expenses are those that have accrued in the tax period but have not been paid; and claims for travelling; and use of an office or studio at home. Relax and let us ensure that all your expenses are claimed and that you pay the correct (lower) amount of tax and not the incorrect (higher) amount.
Claiming back tax for use of a motor vehicle supplied by your employer
Did you know that you can claim for a reduction in the amount of the fringe benefit? Let us submit your income Tax Return and ensure that you pay the least amount of tax – legally!
Uploading Documents
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.
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 may lead to the pleasant surprise of a tax refund. If a Tax Clearance Certificate is required, it is essential to have ALL Tax Returns submitted with no outstanding tax payments.
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.
