How does income tax work in South Africa? 2024
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- เผยแพร่เมื่อ 24 ส.ค. 2024
- How does income tax work in South Africa?
How does provisional tax work in South Africa?
Do you need an accountant? Contact us at heinrich@saaccountingsolutions.co.za or check out our website at www.saaccountingsolutions.co.za
Here are the answers:
Income tax and provisional tax in South Africa can be tricky, however I put this video together to explain the basics about income tax and provisional tax in South Africa in a very simple and practical way!
Please like my video and subscribe to my channel, there will be more videos to follow.
Topics I covered
Timelines
Due dates for tax returns
SARS assessments
Company tax rates in South Africa
How provisional tax works
Turnover tax
Small Business Corporation tax rates
Individual income tax rates
Pay as you earn
You will also find answers to the following questions
- How does income tax work in South Africa?
-How does provision tax work in South Africa?
-How does SARS tax works?
How does company tax work?
After watching this video you will have a good basic understanding of how income tax and provisional tax works in South Africa!
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Thank you so much for the valuable information. Please explain how the company gets to pay for rent if one is working from home.
Hey there
Thank you for sharing your knowledge with us!
Content suggestion: tax write-offs for small businesses
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Excellent explanation. Subscribing immediately. Very insightful and a great level of understanding in this video
Thanks and welcome!
Your uploads are my personal favourites hey, thanks for the knowledge.
Glad you like them! I have something VERRRYYYY exciting lined up for this week!!!
@@SAAccountingNetwork I'm excited to see what you have. One day I'd like to come to your offices and get to ask all questions that I have, in which province are you located?
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School isn't giving me this information
Crazy but true!!!
Love the simplicity of the lessons 😅 thus I follow, like & sub🧐
Awesome, thank you!
Great presentation sir 🙏 please do a presentation about bankruptcy your effort is highly appreciated
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Just found your informative vidz today. I had to subscribe and like for more vidz. Thanks for a clear and precise info.
Awesome, thank you!
Excellent thank you. Clear presentation, easy to follow and down to thepoint. Highly recommended.
Thank you very much!
Can you please explain the siplest way of determining how much tax you will pay on your income when you qualify for commission/ incentives. In other words, how much income I can get before falling into the next tax bracket.
This was a great explanation, thanks!
You're very welcome!
Thank you , really needed to know this 😭
Glad it was helpful!
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Great video and thank you for the explanation it is a huge help. I want to know, if I buy a product for exp a TV for R3000 VAT included do I have to pay tax on it again latet on or is it only on specific products that you pay tax on twice or yearly.
Hi there. I have a question that might sound silly. But how do you know when if you should be paying tax or not? I’m 25, currently studying so not working, however I do have some savings. Do I therefore need to pay taxes on my savings? Thanks!
Hi there, only the returns on your savings are taxable, but that needs to be more than about 90k per year, however, if your investment income is from more than one source you would need to file a return, best to check with sars
Still going over my head Don't matter how many TH-cam videos I watch i still unsure where and how to pay 😅
That is what accountants are for!!
This is deeply appreciated. How would you suggest i pay tax if my income fluctuate per month as a small business owner?
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So when you owning a company and the company pays you does it mean u pay for the business and for yr personal
No, company pays on profits, owners pays tax on drawings, but same amount isnt taxed twice
how does tax work when you have several companies
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How does tax work if you get paid from an overseas company but work online in south africa
Send me an email at heinrich@sataxreturns.co.za then I can send you a template - but you would have to do provisional tax returns every six months
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Thank you so much
You're most welcome
Hi, I would like to ask if how do i know if my employer pays my tax to SARS? My employer has never asked for my tax number. So, I am not sure how it it paid. Please help
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Good afternoon Sir, I will get straight in into it. I got paid R3038.00 for per month for 3 months while working for the department of basic education as a examination reviser.
I got taxed 25% during that period for my tax, why is that? I thought if you get paid below below the annual threshold of R70k edit: (this year R87 300) taxes/tax shouldn't apply to you.
Im 23 years old. Im unemployed at the moment.
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Hi there I’m also unemployed could please share some knowledge on how you got hired to be an examiner reviser
Does the company you work for pay your PAYE before they pay their employees.
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Hi I'm in saps and going to resign my payout is 2,9million. Rand I want to no how much is sars going to tax me
You would need to speak to a tax consultant as there might be some complicating factors, so there is not a straight forward answer to this question
Hi there.
Based off my current salary and some online tax calculators I used, I found that I am paying less than 18% tax on PAYE basis... Please could you explain how this works.
My salary is around 180k per year, so I'm assuming it should always be 18% flat rate paid per month, as the bracket for 18% is R0-R205k, however when I get my pay slip each month they have only deducted around 10% tax.
Is this to say that if you fall below the maximum amount of each tax bracket you are charged less on your tax?
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I would like to buy a car in business name,
What are pros & cons of doing that?
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Im currently a freelancer making money through editing and earning a salary of around $2400 (Around 42k in rands) and there is no official fixed contract, how will i be taxed and what should i do to legalize myself i guess you can say? I get paid through paypal and from their transfer money to bank account.
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What if the business company does not make any profit? How then do they calculate the tax payable?
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Great video!
.. but how do we calculate individual tax from those tables?
For example - if my salary is 250k/year, then -
How I understand it's 26% +38900.
26% of 250000= 65k
Add 38900= R103k tax!
Where is my mistake?
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Good day sir thank you so much i learned something. I wanted to know how much profit should a company make in order to qualify for payments of income tax? What if the company makes profit that's much lower then R100 000 will the income tax still be compulsory?
Hi there, if you use the 28% tax rate it applies from the first rand's profit, so if you make R1 profit you will be paying 28 cents.
@@SAAccountingNetwork thank you so much.
Someone told me start up companies are exempted to pay tax. I wanted to know if that is true
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Can you explain if you are a forex trader how do you pay tax and what can you reduce it?
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How can the military personnel reduce their income tax liability, since they are mostly out of the country? Can they use the 183 days that applies to residents and non resident tax payers ?
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Please help... I read up today that micro businesses with turnover under R1m p.a. in SA (regardless if company or sole proprietor) only have to pay 3% of turnover tax, nothing else.
Question: if I for example start 5 micro businesses and it is each running on a different bank account, under my name, but trading as the different entities, will the R1m apply to each of these businesses, or would it apply combined for all my businesses.
Please clarify.
Also: if I earn additional income from rental properties that I do include in my tax return with the necessary deductions related to the rental income, do I still have to include anything on my personal return with regards to the 5 businesses? Or would they be seperate paying their seperate tax as something apart.
Please help me understand. Thanks so much!
You cant have 5 micro businesses as you will be abusing the system, one of the requirements is that you are only allowed to have one business. If they catch you you will be in BIG trouble, not worth the risk. Also be VERY careful with Turnover tax, they will allow you into the net, then maybe 5 years later they will come back and say you werent supposed to be due to some technicality, then backdate all the assessments, plus penalties, plus interest. So dont do it.
I switch jobs last year n paid a a lumpsum off 81000 to tax.....and only got a return back off 3000rand .....is this correct
Would have to see the return. But lump sums gets taxed separately
Hello i would like to ask on claiming returns and how it works, do you get all the money tha was taxed from your income or you get half and the rest you will get the following financial year?
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how do we determine taxable income
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Hi
How much Tax Do I Pay if I work as a Commission Agent only.
Thanks
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so, if you are an investor, forex do you pay tax?
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The income tax in SA is soooo high
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Hi great advice you are a God send
Just a question
I recently opened up a company and I have not really had any expenses or income, the only thing I have done is buy small amounts of airtime to keep my bank from blocking my account from inactivity (also made a deposit of R100)
Do I still need to do tax returns for next year as I am comfortable waiting for my financial year to end and just stick to making small fees +/- R30 just to keep the account active (Feb 2022)
And I do need to (file taxes) could you please recommend a budget friendly solution
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@@SAAccountingNetwork thank you
If your business income is 30000 a year do you still pay tax
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Greetings Sir. Let's say I have a company that made R100 000 as profit for the year. Am I allowed to take that profit and invest it else where and if it's allowed, how will I then be taxed as I invested that amount( will it still be considered profit or an expense)?
Hi there, remember investments isnt normally an expense butt an asset, so you cannot deduct it from your income to reduce your taxable income, so you will have to use your after tax profit for investing, then the proceeds from your investment will be taxable again, hope it makes sense.
@@SAAccountingNetwork Thank you for the clarity. It makes perfect sense. Does it matter how I use my profits to sars, meaning will I be in trouble if I buy personal things for myself using the company's profit, but only after sars takes it's share, can I use the remaining money on myself? I hope the question is clear.
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Awesome, but what i want to know is the tax bracket, you got 18% on the first line and then your second row you have a 40 680 + 26%. How does that work?
I’m a commission earner and I’m thinking of starting my own business in real estate.
Do i still pay myself or just let the money run through the company, will i be penalized if i do so?
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Does this also apply to creatives
Anyone who earns an income!
@@SAAccountingNetwork Thanks thought the rules were different thanks keep up the good work your channel is dope hope it grows I learn so much thanks
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You gave the argument that businesses owe tax because they earn an income during a period in which government provided services that enabled the business to operate and make said income.
OK.
But everything my business does has tax linked to it. I pay tax already in the course of doing business such that by the time the year ends, I HAVE already paid tax. When my car breaks down and I pay the mechanic, or when I buy fuel, or pay for insurance I AM paying tax. So at the end of the yar why do I owe MORE tax.
In fact, if I am a 1 man business, my business will make, let's say R100 000. That 100 000k will be taxed down to R72 000. Then I pay myself a salary (for argument's sake lets say the whole amount), that 72k will be taken another 1/3rd or R24000. So government takes 24 000+28000=52 000 of my R100 000 income! Meaning the real value I get is only R48000
Then now that I have paid myself the salary I walk into a shop to buy bread, government AGAIN charges me 17% vat... such that if I used all the money for such purchases... 17% of the 48000 (R8000) goes, again, to government. Therefore of the original R100 000 I only actually get to keep R40 000!!!!
Worse is the fact that to do those returns I need to spend more of that 40k to pay an accountant... just another hidden tax. So I actually lose even more!
This is not only morally wrong, it is criminally wrong. It cannot be that the person who takes the risks, sacrifices his health, family time, and talents only keeps 40% while rest is taken away.
Why is it taken away? To give lazy layabout free electricity? free water? free houses? Or to ply single mothers with regular cash deposits? No. This is wrong and demotivating and only encourages me to circumvent the whole system or to just not bother building a bigger business than I need to just secure my own family's comfort.
Why is government so capable when it comes to chasing the only people who contribute but when it comes to prosecuting the thieves in government thee is no energy at all? Why are the people who build the nation jailed or penalized or even have properties taken away by SARS when the people who are a net burden on the country just get an easy life on easy street receiving free stuff each month? How is that fair and "equitable"?
Interesting view
@@SAAccountingNetwork Man, I know that was a bit of a rant (my apologies) but I'm just sick and tired of this whole thing.
I'm trying to build a business and for the last 6 years I'm the one breaking my back sacrificing and being taxed the whole time.
I'm sure there are manny nuances in the tax code but the big picture is clear: taxpayers are effectively indentured slaves in the service of the ruling corrupt elite and the "poor".
I put "poor" in quotes because if you do the math, a "poor", able bodied person is likely enjoying several 1000's in freebies each month. Imagine someone who gets an unemployment grant, gets free electricity because of "indigency", free water, a free RDP house WITH solar geyser, subsidized transport, child goes to school for free, when they are sick they go to clinic/hospital for free, free school lunches, if a single mother, gets a child care grant...even free policing! Tally that all up and it's probably R30-40k each month!
In return that person doesn't need to do 1 iota in return. They owe nothing in exchange and SARS doesn't even look in their direction. They wake up when they feel like it, spend their time relaxing and if they want more free stuff can just go and block roads to hold the nation to ransom, or burn school or two or maybe attack buses.
Meanwhile, I, the law abiding taxpayer am barely able to get through the month, am never home, miss my kids, pay for my own fuel, lifestyle, health and rent and have debts I can't clear because I am feeding and housing a thankless bunch somewhere out there! It's not fair.
Tax should be reduced, and the new amount we pay should go to developing infrastructure, something that has net returns, not disappear into lazy tummies and corrupt hands.
OK, enough ranting.