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Forward email
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Thank you for your support in 2020.
Our office will be closing on 18 December 2020 and will re-open on 4 January 2021.
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IMPORTANT TAX DEADLINES TO REMEMBER
- 31 January 2021: Individual provisional taxpayers and Trusts 2020 tax returns
- 28 February 2021: Companies, Close Corporations with February year ends 2020 tax returns
- 28 February 2021: 2021 second provisional tax estimates and payments for provisional individual taxpayers, Companies, Close Corporations and Trusts with February year ends
Please remember to check your odometer reading at 28 February 2021 for tax purposes should you receive a travel allowance.
FOREIGN INVESTMENT ALLOWANCE
In terms of South African Reserve Bank Exchange Control, South African residents are entitled to two allowances per calendar year:
- R1 million discretionary allowance (DA) – this allowance may be used for foreign investment without having to obtain tax clearance (a tax number is required), as well as; travel, gifts, loans, studies and alimony.
- R10 million foreign Investment allowance (FIA) – this allowance can be used to invest funds overseas and requires the applicant to have a green bar coded South African ID book and to obtain tax clearance from South African Revenue Services (SARS) before proceeding.
The application can be filed through e-Filing by submitting an application form and supporting documentation/information. |
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A Remote Working Danger: Independent Contractor or Employee?
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The move to a much greater level of remote working this year has reinforced the need for small businesses to ensure that they classify the people that work for them correctly.
One of the biggest challenges for small businesses is to ensure that independent contractors, especially sole proprietors, do not drift into a position where the South African Revenue Service or the Department of Labour would classify such a person as an employee.
The failure by a small company to manage the relationships with their independent contractors can lead to great costs for the company if the authorities find that the relationship with any of them is an employment relationship and the firm then needs to rectify the situation.
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Accounting Tips for SMMEs in a Rocketing Tax Future
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During his 2020 Medium-Term Budget Policy Speech not so long ago, Finance Minister Tito Mboweni announced that government has projected tax increases of R5 billion in 2021/22, which will be followed by increases of R10 billion in 2022/23, R10 billion in 2023/24 and R15 billion in 2024/25.
These impositions will require SMMEs to utilise the best available accounting skillset to minimise the impact of the imminent bite on their bottom-line.
The future is uncertain and there is much speculation about a whole range of predicted trends (such as the possible disappearance of cash by 2030), but there is a sizable obstacle that SMMEs will definitely have to deal with in the short term - the projected increases in tax.
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6 Tips for Getting the Most from Your Tax-Free Savings Account
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Tax-free savings accounts (TFSAs) have been around for just over five years, and yet many people still do not know about them, are unfamiliar with the benefits or don't know how to take maximum advantage of this unique investment opportunity.
Ideally part of a diverse portfolio, TFSAs are not quite as straightforward as they may seem. While the benefits can be substantial, there are also numerous mistakes which can easily be made, which might result in your investment not making nearly as much as it possibly could.
We look at five things you need to pay attention to if you hope to maximise the wealth creation possible with a TFSA.
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Employees Working Abroad: How to Avoid Double Tax
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Due to travel bans and restrictions imposed as a result of the COVID-19 pandemic, many employees working on foreign assignments or abroad may not qualify for the foreign remuneration exemption for the 1 March 2020 to 28 February 2021 assessment period, and face paying double tax on the same income – in South Africa and in the foreign country.
In this article, we look at the requirements for qualifying for the foreign remuneration exemption, the latest legislative and circumstantial changes that need to be considered, as well as the steps that employers can take to assist their employees to plan for their foreign remuneration tax liability and to avoid a potentially crippling double tax burden.
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Your Tax Deadlines for December 2020
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- 7 December – Monthly PAYE submissions and payments
- 24 December – VAT manual submissions and payments
- 30 December – Excise Duty payments
- 31 December – VAT electronic submissions and payments
- 31 December – CIT Provisional Tax Payments where applicable.
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Thank you for your support in 2020.
Have a Wonderful Festive Season, and a Happy and Prosperous 2021.
Enjoy the Break!
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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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