Cryptocurrencies are not new, but recent developments, including the massive gains they experienced since last year, have placed them under the spotlight. South Africans’ notable interest in them, and SARS’ renewed focus on the wealthy’s undeclared assets, together with its improved capabilities to track taxpayers’ transactions, suggest SARS is intentional about tracking these activities and assets.

It is not surprising then that SARS has turned its attention to cryptocurrencies, causing a stir by requesting taxpayers with returns selected for verification to also declare their cryptocurrency holdings and to provide supporting documentation. Read on for some thoughts on what SARS will expect from you if you have made any transactions related to any cryptocurrency, and the penalties it can impose for non-compliance. 
 


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22A Church Street
DURBANVILLE
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  Tel: 021 970 4600
Fax:  021 975 6780
Email: info@sdkca.co.za		  
Website:  www.sdkca.co.za 
 

 
         
 

2021 INCOME TAX SEASON – OPENS 1 JULY 2021

SUBMISSION DEADLINES OF 2021 INCOME TAX RETURN

The deadlines for the submission of the 2021 Income tax returns have been published in the Government Gazette No. 419 dated 14 May 2021, and are as follows:

Electronic submission of Individual: non-provisional taxpayers   -    23 November 2021
Electronic submission of Individual – provisional taxpayers   -   28 January 2022 
Electronic submission of Trust’s tax returns   -   28 January 2022
Electronic submission of Companies/Close Corporations tax returns   -   12 months from year end      

The Income Tax Act has been amended to impose administrative penalties for non-compliance. These penalties are levied impartially, consistently and proportionately to the seriousness of the non-compliance and can vary from R250 to R16 000 per month, per return outstanding.

SARS “AUTO-ASSESSMENTS’

SARS will once again be issuing “auto-assessments” to a significant number of individuals this year, with this process commencing in July 2021. Taxpayers, who are selected for “auto-assessments” will be contacted by SARS via SMS.  The taxpayer may then either accept the “auto-assessment” or file a tax return to edit the “auto-assessment”.

REQUIRED INFORMATION

In order to facilitate us in the completion of your income tax return we require certain information such as:

  • IRP5 Certificates
  • IT3(b) and (c) Certificates
  • Vehicle logbook for the year: 1 March 2020 to 28 February 2021
  • Medical Aid Tax Certificate
  • Invoice and Receipts for Medical expenses not paid by medical aid
  • Donations S18A certificates
  • Retirement Contributions Tax Certificates
  • Rental and/ or other Business activity income and expenses
  • Disposals of fixed property or investments during the year

The above list is not comprehensive, and additional information may be required based on your unique tax affairs. Kindly forward the information as soon as you are able to, to the manager responsible for your portfolio at SDK or to tax@sdkca.co.za, to reduce the risk any late submission penalties.

PLEASE TAKE NOTE

  1. If you are a provisional taxpayer and do not remit your third top up payment to cover your 2021 tax liability by 28 September 2021 interest will be imposed from 1 October onwards until date of payment.
  2. If any of your details have changed during the past year, such as address, bank account etc. kindly include the new details when providing your current tax information.

Should you require further clarification, please do not hesitate to contact us at tax@sdkca.co.za.
         
 
 
June 2021 NEWSLETTER
Got Cryptocurrency? Here’s How Much SARS Wants…

Cryptocurrencies are not new, but recent developments, including the massive gains they experienced since last year, have placed them under the spotlight. South Africans’ notable interest in them, and SARS’ renewed focus on the wealthy’s undeclared assets, together with its improved capabilities to track taxpayers’ transactions, suggest SARS is intentional about tracking these activities and assets.

It is not surprising then that SARS has turned its attention to cryptocurrencies, causing a stir by requesting taxpayers with returns selected for verification to also declare their cryptocurrency holdings and to provide supporting documentation. Read on for some thoughts on what SARS will expect from you if you have made any transactions related to any cryptocurrency, and the penalties it can impose for non-compliance. 
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Youth Day: Why Our Young People Are So Important to Your Business
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As we commemorate Youth Day in June, we are reminded of the impact the youth can have on the future of a country. The impact of today’s young South Africans will be even more pronounced as they become the voting and taxpaying citizens of tomorrow, and the leaders who will chart the course of our economy. 

For business owners, too, the youth is immensely important, not only as the taxpayers, voters and leaders of the future, but also as the consumer market of tomorrow and as the workforce of tomorrow. This creates compelling reasons for companies to invest in the youth to ensure their own sustainable future, and to investigate the incentives available to do so. 
   
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How SMMEs Can Benefit Financially from the Fourth Industrial Revolution
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The Fourth Industrial Revolution (4IR) refers to the blurring of boundaries between the physical, digital, and biological worlds. It’s a fusion of advances in artificial intelligence (AI), robotics, the Internet of Things (IoT), 3D printing, genetic engineering, quantum computing, and other technologies. This leads to organisational and structural changes, some not so readily welcomed, particularly by SMMEs.

These may include increased spending on technology, considering running costs and maintenance et al.  Could this present an opportunity to restructure expenditure and rotate capital within these small businesses, giving a better chance of success?

We share some thoughts on how your business can address this question…
   
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8 Tips for Marketing Your Business on Instagram
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Since the early days of MySpace, social media has become a central part of most people's lives. It's how we get our news, share our highlights with loved ones, stay in contact with acquaintances and even discover new job opportunities.

It also offers one of the best budget-friendly ways for small businesses to expand, reach new clients and increase their profit margins. Of all the social media sites Instagram is proving itself potentially the most valuable for entrepreneurs, or at least, for those who know how to use it.

Here are 8 tips to get you started marketing your business successfully on Instagram.
   
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Your Tax Deadlines for June 2021
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  • 7 June – Monthly Pay-As-You-Earn (PAYE) submissions and payments

  • 25 June - Value-Added Tax (VAT) manual submissions and payments

  • 29 June - Excise Duty payments

  • 30 June - Value-Added Tax (VAT) electronic submissions and payments

  • 30 June - Corporate Income Tax (CIT) Provisional Tax Payments where applicable

  • 30 June – End of the 1st Financial Quarter
   
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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