Rental Income / Deductible Expenses

  Owning a secondary property could be rewarding as it creates wealth by generating rental income on your investment and also through long term capital growth. It could also supplement your monthly income. However, not disclosing the rental income or incorrectly claiming expenses that are not in the production of income could result in you been penalised by SARS. Examples of taxable rental income that must be declared to SARS:…  Read more

Tax and Medical Expenses

Medical Expenses Do you feel as though your monthly medical expenses are consuming and exhausting your income? With the rising costs of medication and medical aid premiums, this could have a financial strain on your disposable income.  If you are a registered taxpayer and earn taxable income, you are entitled to claim back valid medical expenses that have been incurred and if you contribute towards a registered medical scheme you…  Read more

Provisional Tax

  What is Provisional Tax?  Provisional Tax is not a separate form of Income Tax.  It is the method of paying your income tax liability in advance to ensure that you don’t have a large tax liability on assessment.  A third payment is optional after the end of the tax year but before the issuing of the assessment by SARS –  Provisional Tax is generally paid by individuals who earn non-salary income, for example, from a…  Read more

Time has run out for on-line tax return filers

Time has run out for on–line tax return filers  If you are not aware of it, yesterday was the deadline for submission of 2020 tax returns for taxpayers that submit tax returns via e-filing.  As a reminder these are the due dates for the 2020 tax season for individuals:  22 October 2020 – manual filing at a SARS branch (now closed)  16 November 2020 – non -provisional taxpayers filing electronically on SARS E-Efiling. …  Read more

Do you need to submit a Tax Return?

Tax Return Submission – ITR12 (Individuals) Thinking about whether you are liable to submit an annual tax return? Maybe just flip a coin and let luck decide on that? Sorry, but it’s not as simple as that, and not following the correct SARS filing process could land you in hot water with the “TAXMAN”. Trust me guys, nobody wants to be non-compliant and have an outstanding debt or a bad…  Read more

The Retirement Annuity

Retirement Annuity (RA)Does the thought of `retirement’ send shivers down your spine? Ever considered what it would be like reaching the age of retirement and not being able to retire? This is reality and something that every one of us will face at some stage in life.Most people have goals of achieving financial freedom at retirement but in order to attain this, it requires strategic financial planning and discipline. Nobody…  Read more

Trusts as a tax planning tool

Trusts have largely fallen out of favour as a tax planning tool, because of various anti-avoidance provisions that SARS have introduced over the last couple of years.Despite this fact, there is still a solid business case for establishing a Trust in South Africa, if your personal circumstances fit the profile explained below. The primary tax planning benefits of establishing a Trust are as follows: Long terms savings in Estate duty;…  Read more

Tax-Free Savings Account (TFSA)

The famous saying goes there are 2 things that are certain in life, death and taxes” with the latter being more of a concerning issue for some of you. Most people are not too generous when it comes to the point of digging deep into their pockets to pay the due taxes received on their hard-earned investment income. What if I were to tell you that amongst the hundreds of…  Read more

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