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2020 SECOND PROVISIONAL TAX RETURNS AND PAYMENTS DUE 28 FEBRUARY 2020
While SDK is in the process of working with you to determine your second provisional tax payment and to ensure compliance with SARS, here are a few factors to consider:
- Provisional tax is not a type of tax, it should rather be seen as a pre-payment of your income tax.
- The second provisional tax period is generally an estimate of what you anticipate your taxable income to be in the next tax year of assessment.
- It is highly recommended that the taxpayer should not submit an estimate which is less than the basic amount.
- Payments to SARS should be made by 26 February 2020 to limit the risk of payments be deemed late.
SARS PAYMENT METHODS
Please note that SARS no longer accepts payment per cheques. Alternative payment options are the following:
- Electronic Transfer (EFT)
- Making payment at your bank using the tax statement as proof
- E-Filing
How is the second provisional tax calculated?
Step 1: The total estimated taxable income for the year x the relevant tax rate = Tax payable for the whole year.
Step 2: Any tax credits (such as employees tax, foreign tax credits and medical tax credits) are deducted from the tax amount calculated in step 2 to obtain the amount that needs to be paid to SARS by 28 February.
SARS verifications and second provisional tax declarations
SARS has started to request supporting documentation for the second provisional tax declarations that have been made, mostly where the declaration is less than then basic amount. The type of supporting documentation that you should have ready should it be requested from SARS is:
- Current year management accounts used to calculate the estimate income
- Tax Computation
- Reasons for amounts used in declaration
The above list is not extensive, and SARS may request any information they deem necessary to verify the declaration made.
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Take Advantage of the Venture Capital Company Allowance While You Can
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Here's some good news in the form of a way to save tax (a lot of tax), make a good investment, and directly boost both our economy and our SMEs - all in one go.
That's where the VCC (Venture Capital Company) Allowance comes in. We'll have a look at the substantial savings you (or your trust or company) can achieve by using the allowance correctly; at how it works both initially and subsequently; at the need to beware of costs; and at how "finding a gem" could give you a (very) substantial after-tax return.
We share some practical examples to illustrate, and end off with a warning to act quickly – the allowance is planned to fall away at the end of June 2021.
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Small Businesses: How to Survive and Thrive
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SMMEs (Small, Medium and Micro-Enterprises) play an integral role in our economy, and it is alarming therefore to read recent research showing that a massive 70% - 80% of South African small businesses fail within five years.
Why the high failure rate? What factors contribute to the success or failure of small businesses? Why are some entrepreneurs more successful than others, and what characteristics should you have (or develop) to maximise your own chances of success? What can government contribute?
Read on for the answers to these questions and more...
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Directors: Be Careful, You Will Be Held More Accountable In 2020
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Being a company director (or a senior manager) comes with onerous duties and risks which require constant management.
And 2020 is shaping up to be a year in which you will find yourself under increasing scrutiny, with the NPA now showing a distinct appetite for charging delinquent directors criminally, and with the ongoing risk of personal liability and class actions by trade unions and other stakeholders.
We discuss the standards to which you are held by the Companies Act and remind you of several specific and growing risk areas, not all of them immediately obvious but all of them important.
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Lying About Qualifications – Prison Time for Employees on the Horizon
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Employees are the lifeblood of any business, but if they are incompetent and under-qualified they can also be its death knell.
That’s why the growing phenomenon of employees lying about their qualifications is such a problem. The employer must now contend not only with the business risks of having someone unqualified in place, but also with the nightmare of a labour law issue.
That’s why new legislative amendments (not yet in place but certainly on the horizon) are so welcome. Both duplicitous employees, and the fraudulent academic institutions that often enable them, will face serious criminal penalties...
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Budget 2020: Tips for Tito – Make Your Voice Count!
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Every year the Minister of Finance asks us what we would like to see in the budget and a "Budget Tips" portal on the National Treasury website is open. This year he asks in particular for our views on "What can government do to achieve faster and more equitable economic growth?"
Your voice is important! We'll show you how to be heard, with hyperlinks to the channels you can choose from.
To give you the idea, last year there were many differing tips ranging from the amusing and the serious to the overly optimistic...
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Your Tax Deadlines for February 2020
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- 7 February - Monthly PAYE submissions and payments
- 25 February - VAT manual submissions and payments
- 27 February - Excise Duty payments
- 28 February - VAT electronic submissions and payments
- 28 February - CIT Provisional Tax Payments where applicable
- 28 February - PIT Provisional Tax Payments
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Disclaimer
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The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
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