Tax & SARS

1.2.3. Consulting

At 1.2.3. Consulting, our promise is simple: With a new-age approach to business, we ensure all your financial needs are met in a way that is (1) simple, (2) smart and (3) stress-free. Offering a wide range of services to a diverse client base, ranging from entrepreneurial start-ups to multinationals and NGOs, we are a vibrant team of professionals who are as passionate about people as we are about numbers. With experts in every specialisation – from tax to management accounting to internal audits – we are qualified to meet and exceed your every financial need. 

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Calculating capital gains tax using part of your primary residence for business purposes

A business owner or professional person often uses part of his or her primary residence for business (non-residential) purposes.  When the residence is sold, a special Capital Gains Tax (CGT) treatment applies. It is important that a business or professional person is aware of the existence of the complexities of CGT and seeks expert CGT advice when a sale of the dual-use residence is anticipated.

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Do small business rates apply to sole proprietors?

Small businesses have preferential rates that are applicable, but one of the requirements is that the business must trade as a private company in order to qualify. As a registered business, SARS is now able to award you the preferential rates. The bottom line is that you need to be willing to change your mindset and work with the system.  You will find it far more rewarding than the constant butting your head against a brick wall.

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Employees' tax

If the tax man ever comes knocking, make sure you have all your "ducks in a row". One regulation that will apply to you is employees' tax. Even if you only have one employee, it's important that you are up to date with employee-related taxes. This article explores employees' tax by defining import terms, looking at the basic principle of employees' tax, and outlining the importance of the IRP5 certificate.

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Example of a tax invoice

In order to comply with VAT regulations, for any sale of more than R50, you have to issue a tax invoice, with the word "tax invoice" printed on it. This is the most important document in the VAT system. The VAT Act prescribes that a tax invoice must contain certain details about the taxable supply as well as the parties to the transaction. This includes the value of the goods/services excluding VAT, and the VAT amount (calculated at 14% of the above amount), among others.

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Facing a VAT audit? 10 financial records you need at hand

If your business is facing a VAT audit by SARS, it is important that you have these 10 financial records on hand. Namely, VAT return totals, VAT control account, VAT interest and penalties, tax invoices, debtors, trade, previous audits, taxable supplies, VAT refunds, as well as assets and liabilities.

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FindanAccountant.co.za

Finding and choosing the right accountant for your business can mean the difference between success and failure. All accountants are not created equal. You need the right match for your exact needs. Unfortunately, once you've selected an accountant, it's often a hassle to switch due to the detailed knowledge that person gains of your business. Therefore it pays, when selecting an accountant, to 'get it right the first time'.

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GoLegal – Tax law

GoLegal is South Africa’s most trusted legal information portal. Its page on tax law provides insights into tax law from South Africa’s leading tax lawyers and other tax professionals, examining tax legislation and case law. Find the latest articles and legal opinions with regards to SARS’ conduct, the taxation of local and foreign entities and assets, and the tax consequences of individual and corporate activities, ranging from loans, trusts, share buybacks, REITS, import and export, and more.

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Good record-keeping is key

The words tax, tax man, Receiver and SARS are known to strike fear into the hearts of many an entrepreneur. This is not only because it implies that you have to part with your money, but because the tax process can be a daunting one. A good place to start when getting your taxes in order is by keeping accurate records. That being said, accurate and up-to-date record-keeping is not only about making life easier when you file your taxes. It can also protect your business's cash flow and enable to run a tight ship.

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Highlights from the national budget speech 2018 – South Africa

On the 21st of February 2018, the former Minister of Finance Malusi Gigaba delivered the 2018/2019 national budget speech. The article looks briefly at the key highlights of the 2018 National Budget speech, and provides links to the full speech, tax guide, and a comprehensive summary of the budget speech highlights to allow for a more in-depth analysis of the speech.

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How not to manage your business and personal finances

Printing Pain* is a home based family business. There were no employees besides the married couple, the Spenders*, who were the owner managers. The annual turnover and net profit of the business before owner’s salaries and company income tax were R1, 4 million and R440, 000 respectively. The business accounting records were also not updated regularly. It was impossible to exercise proper financial control or take informed business decisions. This article uses the Printing Pain case study to explore guidelines for separating business and personal finances.

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Levies that may apply to an SME

Other than the taxes that apply to small businesses, there may also be levies you have to pay, depending on the type of establishment you are running. It's important to keep abreast of these to ensure you are up to date with any fees payable. Some of the levies you could be liable for include registration as an exporter, the skills development levy (SDL), the environmental levy, and Regional Service Council (RSC) registration.

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National budget speech 2019 – highlights

On the 20th of February 2019, the Minister of Finance Tito Mboweni delivered the national budget speech for 2019. As Mboweni highlighted in his speech, the aim of the 2019 budget is to achieve a higher rate of economic growth; increase tax collection; establish reasonable, affordable expenditure; stabilise and reduce debt; reconfigure state-owned enterprises; and manage the public sector wage bill. Find out more about the budget and the impact it will have on your life as a citizen and entrepreneur.

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Registering a private company

When you're setting up your business, one of the first decisions you'll have to make is what kind of legal entity to register. Each business entity has its own pros and cons, so don't make the decision in a hurry or without having all your facts. If yours is a medium-sized enterprise, you may think about registering a private company.

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SARS e@syFile software

To assist employers, tax professionals and companies to meet their tax commitments, SARS has made available a free software package called e@syFile, which can be downloaded from the SARS website or collected on CD from any SARS office. The e@syFile software has been created and provided in an attempt to ensure greater accuracy and allow all IRP5, IT3 (a) and EMP501 returns to be submitted electronically or on a CD delivered to a SARS office. It is also aimed to encourage small business to move from manual to automated payroll systems.

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SimplePay

You don't have time to struggle with complicated payroll software. We get that. And you want to be sure you are up to date with all the changing requirements from SARS. That's why we designed our online payroll system to take as much as possible off your hands. The SimplePay system tells you when your submissions are due and remind you to prevent late submissions; takes the hassle out of payroll administration; and assumes no knowledge of payroll legislation, nor experience with other payroll software/systems.

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South African Revenue Service (SARS)

The South African Revenue Service (SARS) is the nation’s tax collecting authority. Established in terms of the South African Revenue Service Act 34 of 1997 as an autonomous agency, we are responsible for administering the South African tax system and customs service. We are heedful of the role of taxation in nation-building and therefore deem the tax system as an asset that belongs to the nation.

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Tax terms defined

When dealing with your company's taxes, you may feel you need a dictionary for the tax-speak, and explanations for the explanations. This confusion can make the process of getting your taxes in order more daunting than it needs to be. Before you try to get your taxes in order, it's important be familiar with the technical jargon you're about to be bombarded with. This glossary of tax terms can help you get to grips with that complicated language called Tax.

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Tax tips for SMEs

With tax season currently underway, small business owners need to ensure their companies are tax compliant. Many SMEs struggle to understand and deal with SARS’ practices and requirements. The following article offers small business owners advice on how to make the necessary tax provisions to avoid penalties. Keep reading to make sure you're adequately prepared for this tax season.

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Tax tips for SMEs to make filing tax returns easy

With the many challenges small business owners face on a daily basis, trying to understand the complexities of the tax returns process can be draining. Filing your tax return is probably something you don’t look forward to. Figuring out how much you owe and when to submit your tax return does not have to be a pain, especially with so many free online tax tools at your disposal. Here are a few tax tips for SMEs to help you file your tax return with confidence.

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Three little-known company tax breaks to help you pay less tax

Every year, when personal tax season draws near, everyone has numbers on the brain. And while you may be a pro at manoeuvring personal tax loopholes, did you know that there are just as many sneaky tax breaks on the company side of things? It's never too early to start thinking about how you'll navigate tax season. You'll be surprised by how much you can save with these three useful tax tips!

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Turnover tax and the small business

Turnover tax is a simplified tax system aimed at micro businesses (with a qualifying turnover of R1 million or less), making it easier for micro businesses to comply with their tax obligations. It replaces Income Tax, VAT, Provisional Tax, Capital Gains Tax and Dividends Tax. A micro business that is registered for turnover tax can, however, choose to remain in the VAT system. Find out more about the relationship between turnover tax and small businesses.

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Unlocking the legal issues related to your business

Contracts, tax legislation and other Acts relating to your business can be complicated and getting an attorney to help may be very costly. Of course, there is also the question of whether you even know what your legal obligations are. LawUnlocked provides an online tool that may be able to help you assess what your legal obligations are with regards to various aspects of running your business.

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VAT in a nutshell

Whether your business is registered as a Sole Proprietorship or Private Company, there are various tax requirements you have to meet, and one of these could be value-added tax (VAT). VAT is an indirect system of taxation (currently levied at 15%) on the value of all goods and services supplied by vendors. Here is a broad explanation of what VAT is and how to meet your tax obligations as a small business.

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VAT: some of the requirements – part 1

“Who here loves the VAT man?” That is a question that I ask on a regular basis.  Sadly though, more often than not, mine is the only hand that goes up. It is definitely a mind set that needs to be changed if we are to make the best use of the concessions that SARS gives us. It is about what you know and how you use it that will allow you to make the most of your relationship with SARS. That said, here are a few tips in terms of what must be done regarding the VAT requirements. 

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VAT: some of the requirements – part 2

“Who here loves the VAT man?” That is a question that I ask on a regular basis.  Sadly though, more often than not, mine is the only hand that goes up. It is definitely a mind set that needs to be changed if we are to make the best use of the concessions that SARS gives us. It is about what you know and how you use it that will allow you to make the most of your relationship with SARS. That said, here are a few more tips in terms of what must be done regarding the VAT requirements. 

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VAT: some of the requirements – part 3

“Who here loves the VAT man?” That is a question that I ask on a regular basis.  Sadly though, more often than not, mine is the only hand that goes up. It is definitely a mind set that needs to be changed if we are to make the best use of the concessions that SARS gives us. It is about what you know and how you use it that will allow you to make the most of your relationship with SARS. Here are a few more instances and situations that many folk don’t know about, where you can claim VAT back if the product/service has been used for business purposes.

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Why you don't need to submit VAT, provisional tax, and income tax returns anymore

If you're registered for VAT, provisional tax, and are a company, you have to submit these returns to SARS. And it's not just once a year. It's one company tax return, two provisional tax returns and six VAT returns. That's nine times a year. That's almost one a month you're spending time preparing for tax return submissions. How much time is that wasting you? But if you qualify for turnover tax, you may not need to do this anymore.

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