Index
Personal tax is calculated according to SARS annual tax rates for individuals, on net taxable income.
Tax is deducted from your net taxable income by way of PAYE, paid directly to SARS by your employer.
Come year end your employer would have submitted your IRP5 to SARS and your tax return would be fairly simple. It would be a matter of logging on to SARS e-filing, double checking your IRP5 for errors, then hitting "file return".
Defining the true net taxable income once allowances, fringe benefits and other income are in the mix, requires an in-depth knowledge of taxation laws.
This is where our team of registered SARS Tax Practitioners become an absolute asset you.
A sole traders is taxed according to the tax rates for individuals, on net taxable income.
A sole trader is, in short, any natural person who is self-emploed, and generates income through selling a product or providing a service to the public, is a sole trader, for example : restaurants, hairdressers, plumbers, electricians, freelancers, consulting engieers.
All non-salary earners will be automatically registered with SARS as provisional tax payers. Therefore a sole trader will be taxed on net taxable income on a provisional basis : in August and February of every tax year.
You will be required by SARS to provide Annual Financial Statements at year end, as well as irrefutable proof of expenses.
Our team of professional bookkeepers have consistently proven their value to sole traders by ensuring the efficient capturing and allocation of income and expenses, as well as maintaining proper records of all financial transactions.
A freelancer or freelance worker is a person who pursues a profession without a long-term commitment to any one employer for example : voice artist, creative design, sales and marketing, graphic design, mobile app development and search engine optimization.
Freelancers are taxed according to the tax rates for individuals, on net taxable income.
Income tax returns are a little more tricky for freelancers as most companies they do freelance work for will submit an IRP5 to SARS, for income they have received.
A freelancer will be taxed on net taxable income on a provisional basis : in August and February of every tax year.
Freelancers will still be required by SARS to provide Annual Financial Statements at year end, as well as irrefutable proof of expenses.
Our team of professional bookkeepers have consistently proven their value to freelancers by ensuring the efficient capturing and allocation of income and expenses, as well as maintaining proper records of all financial transactions.
SARS have realised that small businesses are the life blood of our economy, and by doing so they have applied certain tax incentives especially designed for small businesses.
The rate of tax a small business pays on net taxable income is progressive (the higher the taxable income, the higher the tax rate).
| Net taxable income | R | Tax payable | R |
Tax is deducted from your net taxable income by way of PAYE, paid directly to SARS by your employer.
Come year end your employer would have submitted your IRP5 to SARS and your tax return would be fairly simple. It would be a matter of logging on to SARS e-filing, double checking your IRP5 for errors, then hitting "file return".
Defining the true net taxable income once allowances, fringe benefits and other income are in the mix, requires an in-depth knowledge of taxation laws.
This is where our team of registered SARS Tax Practitioners become an absolute asset you.
YOU ARE NOT REQUIRED TO SUBMIT A TAX RETURN IF ...