Not necessarily. You can register voluntary for VAT if you can prove to SARS that your monthly sales are R 40,000 or more.

You are however required by legislation to register for VAT once your annual turnover exceeds R 1m.

SARS will issue your company with correspondence specifying what information must be submitted for their review.

The information must then be uploaded on the E-filing system, upon which SARS will verify the information as per the VAT return against the information that you submit.

Should there be any differences, SARS will issue you with a re-assessment.

You will be able to claim back the VAT if the vehicle is a single cab or one and a half cab bakkie. For any other vehicles no VAT can be claimed against your sales.

The prevailing tax rates are as follows:

Please take note that trusts (inter-vivos testamentary trusts) are taxed at 45%

You will have to ensure that all tax returns are submitted, all debt due to SARS is paid (inclusive of all penalties and interest). This will be applicable to VAT returns, Income Tax returns, PAYE returns and Provisional Tax returns.

Once all of this is in order you can apply on E-Filing for a Tax Clearance Certificate, which will be issued within 24hours.

Each year you need to submit an annual return to CIPC. The submission of the return is based on the annual turnover of your business.

Non-submission of an annual return will result in penalties levied, as well as the deregistering of your business.

Provisional tax is not an additional tax that is payable to SARS. Provisional tax returns are submitted at the end of February and August, whereby the company declare their turnover and the forecasted profit/loss for the tax year.

Should the company expect that the company’s financial results for the year will reflect a profit, an amount is payable to SARS. Any payments made in provisional tax will be deducted from the tax payable at the end of the tax year.

The PI Score is an indication of your company’s level of public interest; in other words – the level to which it must be regulated, and the financial reporting standards required for transparency, in the public interest.

The Companies Act, 2008 (Act 71 of 2008 – Company Regulation 26(2)), has made mandatory the submission of a Company PI Score (PIS) for all private and personal liability companies and close corporations in South Africa.

Your company’s Public Interest Score will determine whether your company requires an independent review, or audit, of financial statements, by whom, and what financial reporting standards are applicable. It can also determine the need for a social and ethics committee for private (non-State owned and unlisted) companies with a high PIS.

The higher the PI score, the higher the requirement for public accountability, i.e. regulation and oversight through financial statements review and audit, and, where applicable, social/ethics review.

We charge only of the service rendered, therefore no percentage or “cut” will be payable to us.

When you receive a travel allowance, SARS requires from you to keep a full history of your travels. A logbook is available on the SARS website which will provide you with the required information, such as the number of km travelled, from where and whereto you have travelled and so forth.

Feel free to consult with us to ensure that you receive the maximum refund in a legal way.

In most instances a lumpsum is paid subjective to a tax directive. The fund administrator or employer is required to submit the tax directive to SARS to ensure that you are not held liable for additional tax payments.

You may claim back expenses that was incurred in deriving the commission. Examples of these expenses are fuel, motor vehicle repairs, water and electricity as well as telecommunication costs.

Take note that you have substantive and acceptable proof of these costs, should an audit or verification be conducted.

The Income Tax Act defines tax evasion as the declaration of falsified information, providing misleading information or withholding information.

On the other hand, income tax avoidance is structuring business and personal tax on a legal way, which can result in lower tax payment or qualifying for a refund.

As per the Income Tax Act as well as the Companies Act, tax evasion may lead to large fines and/or even imprisonment.

SARS announced the following individual tax rates for the 2024 tax year:

SARS will deduct an amount from your personal taxable income, based on your age. The rebates are as follows:

Unfortunately, yes. Should you not submit your annual income tax return, SARS will hold you liable for penalties levied on non-submission.

If you earn taxable income which is above the tax threshold below, you must register as a taxpayer with SARS. The registration depends on your age and annual income.

No, you will not pay income tax on the proceeds. You will however pay Capital Gains Tax on the profit of the sale, depending on the profit amount and the nature of the sale. An exemption of R 2m will be applied on the sale of a primary residence, whilst no exemption is applied on secondary properties. By law, you will be required to declare such profits.

Instances where exclusions from Capital Gains Tax exists, are:

• Most personal use assets
• Retirement benefits
• Payments in respect of original long-term insurance policies

R 40,000 annual exemption for individuals

A crypto asset is a digital representation of value that is not issued by a central bank, but is traded, transferred and stored electronically by natural and legal persons for the purpose of payment, investment and other forms of utility, and applies cryptography techniques in the underlying technology.

With the being said, SARS ruled that the normal income tax rules apply to crypto assets and affected taxpayers need to declare crypto assets’ gain or losses as part of their taxable income.

The onus is on taxpayers to declare all crypto assets-related taxable income in the tax year in which it is received or accrued.

Failure to do so is tax evasion and could result in interest and hefty penalties.

SARS ruled that a maximum of R 36,000 per year may be invested in tax free investments. Should you invest more than this threshold, you will be taxed on the amount in excess of the threshold.

Upon your sequestration you had an income tax number. During the sequestration process, all debts was paid to SARS and your tax number closed. Once you are rehabilitated, you should receive a letter from your administrator that declares that you are fully rehabilitated.

Once you have received this confirmation letter, you are required by law to re-register for personal income tax. You will be issued with a new tax number, and are required to submit future returns on the new tax number.

The processing of personal income tax returns is done by SARS. We can not provide you with an exact date, but can do a follow up if the refund did not take place within 21 days.

Please take note that with this enquiry we cannot guarantee a payment date as the refunds are based on SARS internal processes.

Your E-filing login details can be retrieved by obtaining your username. This is done by verifying your personal details. Should your details be verified as correct, the E-filing portal will provide you with your username.

Upon retrieving your username, you are required to provide the password. If you cannot remember the password, you can reset it upon which the OTP (One-Time-Pin) will be send to your cell phone or email.

This process can also be followed, should your previous tax consultant or accountant have the E-filing login details.

Unfortunately you will not be able to claim back any tax. You are however still required to submit your personal income tax return.

A link to SARS E-filing is available on the SARS website, which will take you to the E-filing portal. On the homepage of the E-filing portal the option will be provided to register. You will be required to submit supporting documentation to complete the registration.

SARS has a system in place that synchronise the annual salaries paid to the employees of a company with the SARS E-filing system. The information is then automatically included in your personal income tax return.

You may however be selected for an audit or verification, during which you will be required to submit your IRP5(s).

In accordance to the Labour Law, your employer is obliged to provide you with an IRP5 during the duration of your employment.

Yes, we can assist you. Firstly, you can expect that SARS has already charged penalties and/or interest because of non-submissions. We will first establish what your tax situation is, and – if necessary we will request a remission of payment (a request to SARS) to halt any further penalties and interest.

The following step will then be to submit all the outstanding returns at SARS. Once all returns are submitted, we can lodge a dispute/objection to SARS in order to reverse the existing any penalties and/or interest.

The success of such an objection/dispute cannot be guaranteed, and will depend on the severity of each case.

The notification of approval as a PBO is issued by the TEU by way of a letter, which contains a unique reference number allocated to the organisation. The original letter must be kept for the organisations own records and only certified copies should be provided to other entities or organisations requesting proof of the tax status of the approved PBO. NOTE: SARS does not issue a certificate.

Unfortunately businesses tend to invest too much money in their inventory – often in the slow moving inventory. The secret to this, is to invest in fast moving inventory, to the extent of how quickly these inventory items are sold.

Another factor can be in what we call the solvability of the company. If the customers pay their accounts late whilst you ensure that your suppliers are paid on time, this may lead to a huge cash flow problem. As business owner you must implement controls to ensure that your customers are paying their accounts in times.

You may consider to contact us to perform a ratio analysis, as well as an internal control review.

A number of aspects can have this effect – therefore a diligent review must be carried out to turn your company back on its feet.