Professional Tax Consultant
Professional Tax Consultant – Individual Tax Return Questions and Answers
Some of the questions regarding individual tax returns are briefly answered below. The best advice is, however, to get in contact with a professional consultant from FMJ Financial Servicesfor an assessment of your tax situation and to obtain an obligatory free quote.
Do I have to submit an individual tax return?
If you are an individual and earn a salary or commission or if you charge fees for work done, you have to register for tax payment. If you earn less than the minimum threshold amount set by SARS for the particular assessment year from a single employer, then you will not need to submit a return. If however, you earn less than the threshold from a single employer, but have additional income such as earnings from rental or you want to claim medical expenses, then you will have to submit a return. If you are still not sure whether you are supposed to submit a return, contact us for assistance.
Do I have to pay taxes on income earned in another country?
If you are a resident in South Africa, you have to pay tax on your earnings from anywhere in the world. Note that there are certain exclusions, best discussed with a professional consultant from FMJ Financial Services. If you are not a South African resident, then you will only pay tax on the income derived from a South African source.
To be a South African resident, you must have been present in the country for more than 91 days in aggregate for the specific tax assessment year; for more than 91 days in aggregate for each of the preceding five tax assessment years and for more than 915 days in aggregate for the five years before.
What is a tax rebate?
In its simplest form the rebate, sometimes referred to as tax refund, is a refund given by SARS to the taxpayer when the tax liability or amount that has to be paid is less than the actual amount paid by the taxpayer.
What is the year of assessment?
It is the year for which the taxpayer is assessed covering a period of 12 months. This assessment year starts at the 1st of March and ends on the 28th or 29th of February the following year. Note that the year of assessment for a company or CC refers to the entity’s financial year.
How does provisional tax payment work?
SARS allows for provisional tax payment, where the taxpayer makes two tax payments during the year of assessment and where the final tax liability is only determined upon the final assessment. The provisional tax payments are made at the end of the assessment period and six months after the assessment year started. The taxpayer completes an IRP6 form and submits it to SARS. A third payment can be made if the tax owed is more than the estimated amount payable.
Which deductions are allowed for individuals?
It is important to note that, for each of the deductions listed below, specific terms and conditions apply, best discussed with a professional consultant to ensure that you do not make a deduction which is not allowed.
- Pension fund contributions
- Retirement annuity fund contributions
- Travel expenses
- Medical aid contributions and expenses
- Home study expenses
Can I not just complete my own tax returns and submit it to SARS?
Yes, you can and do not need to make use of a professional consultant. You can also ask a SARS consultant for assistance. However, the benefits of making use of professional tax consultants such as FMJ Financial Services are:
- Timely and accurate tax return completion and submission.
- Accurate calculations which will help avoid penalty situations.
- Structuring assistance to prevent you from overpaying.
- Full compliance with statutory regulations.
- Tax advice on commercial transactions
- Ensure a professional qualified tax practitioner deals with any audits and handles objections in a timely fashion where necessary. (SARS requires objections within a period of 30 days and currently have draft rules which will change the objections and appeal rules.
Our professional consultants understand that each individual and small company’s situation is different. It is thus imperative to provide personalised assistance and we start with an objective quote based on your particular tax profile. Contact us for an obligatory free quote today.