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2018 TAX SUBMISSIONS

Tax season starts 1 July 2018

Due dates:

  • 21 September 2018 - Manual submissions per post or at SARS branch drop boxes
  • 31 October 2018 – Efiling or electronic filing at SARS branch (non-provisional taxpayers)
  • 31 January 2019 - Provisional taxpayers via e-Filing
Please note that SARS has shortened the period for non-provisional taxpayers to submit their tax returns by three weeks.

SARS has stated that their rationale behind the amendment is as follows:
  • A shorter filing season allows additional time for SARS, taxpayers and the tax fraternity to deal with return verifications before most taxpayers go on the December holiday break. Often there are delays with taxpayers having to respond to our queries and requests over the holiday break. 

  • The quiet period after the first three months of tax season has now been removed resulting in efficient use of SARS resources. 
(The above is an extract from SARS’ website)


DO YOU QUALIFY AS A PROVISIONAL TAXPAYER


What is provisional tax
?

Provisional tax is not a separate tax, but a method to regulate the amount of income tax paid to the South African Revenue Services (SARS). In order to avoid making one large tax payment to SARS, provisional tax payments are made during a tax year.

With each provisional tax declaration, the taxpayer needs to estimate their taxable income for the full tax year based on information available at the time of the estimate.

It is of utmost importance to ensure that the estimate is done as accurate as possible, as SARS may impose underestimation penalties if the estimate was not at least 80% accurate (if actual taxable income is over R1 million) or 90% accurate (if actual taxable income is under R1 million).



Requirements for registration?

Any person, who receives income other than a salary, is a provisional taxpayer. A provisional taxpayer is defined in paragraph 1 of the Fourth Schedule of the Income Tax Act No 58 of 1962, as –
  • Any natural person who derives income, other than remuneration or an allowance or advance;
  • Any company; or
  • Any person who is notified by the Commissioner that he or she is a provisional taxpayer.
Excluded from being a provisional taxpayer, as defined, are any – 
  • Approved public benefit organisations or recreational clubs;
  • Body corporates, share block companies or certain associations of persons; and
  • Persons who are exempt from paying provisional tax, namely:
      • Non-resident owners or charterers of ships or aircraft;
      • Any natural person who does not earn any income from carrying on any business 
        • provided that person’s taxable income will not be more than the tax threshold (for 2019 tax year: for taxpayers below age of 65 – R78 150; age 65 to below 75 – R121 000 and age 75 and over – R135 300); or 
        • the taxable income of that person (earned from interest, foreign dividends and rental from letting of fixed property) will not be more than R30 000.

When is provisional tax payable?

There are two compulsory provisional tax declarations and payments per tax year, with voluntary third provisional payment to account for any underpayment of provisional tax. 

The deadlines for submission of provisional tax declarations (IRP6) and payments depend of the type of taxpayer and their year-end. The deadlines for the 2019 tax year (relating to the period 1 March 2018 to 28 February 2019) are as follows –  

For individuals, Trusts and Companies with a February year end
:

2019 first provisional tax (compulsory)
31 August 2018 
2019 second provisional tax (compulsory)
28 February 2019
2019 third provisional tax (voluntary)
30 September 2019




For Companies with a different year end than February:

 2019 first provisional tax (compulsory)  6 months after year end
 2019 second provisional tax (compulsory) 12 months after year end
 2019 third provisional tax (voluntary)  6 months after second provisional tax




If you require any additional information relating to provisional tax, please do not hesitate to contact our offices.


 
OFFICE NEWS

Banking details

We again request our clients, to please make sure that you use the correct banking details as it reflects on your invoice, when making payment. We have different bank accounts for different entities.
 

 
 
 
 

Congratulations to Elsie Kruger of our Accounting Department who finished this year’s Comrades Marathon.

Well done Elsie, we are very proud of you.
 
   
We have launched our new SDK Chartered Accountants (SA) website.  Please check it out!

 
     
 














July 2018 NEWSLETTER
Your 2018 Tax Season Deadline: Brought Forward By Three Weeks?
Tax Season 2018 for individuals has just opened, and as always you should start getting everything together now because late lodgement of returns will expose you to totally unnecessary penalties and interest. 

We discuss whether you need to submit an income tax return in the first place, and if so whether you are affected by the new 31 October deadline. We’ll also take a look at why SARS has brought the deadline forward by three weeks and at the benefits to both taxpayers and SARS.

Our “Your Tax Season 2018 Deadlines” table conveniently shows you your exact deadline date.
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Will Cash Disappear From Society?
ArticleImage Is a cashless society on the horizon for South Africa? If so, the practical implications for us all will be enormous. And as always we should prepare ourselves for it on the “forewarned is forearmed” principle.

We’ll discuss how some countries are already pioneering the way towards a society without cash, the pros and cons of the concept, and the arguments for and against the proposition that cash, like the cheque before it, might already be firmly on the slippery slope to extinction.  We’ll end off investigating the various reasons why despite everything, cash remains – at least for the moment - ubiquitous.
   
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Have You Been Hacked? Check Now!
ArticleImage Every day, it seems, we learn of yet another hack exposing our passwords and other private information to cyber criminals. 

Sometimes the hacks are international, sometimes local. But every time it happens, vast amounts of sensitive data end up in the wrong hands and we all of us need to take responsibility for reacting immediately and effectively to protect ourselves.

The first step of course is to find out “Has my information been compromised, and if so what?” We’ll show you how to check that online - quickly, easily and at absolutely no cost. The important thing is to do it NOW!
   
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Small and Medium-Sized Businesses: How to Stay Healthy and Profitable
ArticleImage Are you an entrepreneur, business owner, corporate executive or government decision maker? If so, this article’s for you.

SMEs as we all know are key drivers of job creation in South Africa, and with unemployment high on our list of problems we need to give entrepreneurs every bit of support we can. We share some thoughts on how government and big business can do that.

On the other side of the coin, in “3 steps to staying in business” we’ll look at how SMEs can themselves ensure their own long term success.
   
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Your Tax Deadlines for July, and Keep Your Car Allowance Logbook Up To Date!
ArticleImage There are no major deadlines this month. 

Just a reminder for those on a car allowance to keep comprehensive logbooks as per SARS requirements of all your business trips. Without proof of your business travel, SARS will deny your travel claim.

There are stories that SARS will be tightening up on logbooks and may require more detailed business trip information, so ask your accountant to inform you if there are changes.
   







Disclaimer

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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