Tax Tips

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Tax Tips
Have you done your tax return?
  • Individual Tax
Your tax returns should not have to be complicated or confusing. Let us take the stress out of tax by filing your returns and audits on your behalf. Speak to a tax
  • Handle Audit
SARS audits check if things are done correctly, to verify the validity and amount of the claim. If they are not happy, they will simply disallow claims and issue
  • Handle Objection
Getting an objection wrong can mean that the assessment is final and nothing can be done to correct it. It is the important.
  • Penalty Negotiation
SARS issues penalties when returns are not submitted or filed late. However penalties can be negotiated our experts and reduce the stress of managing
TIPS TO SAVE ON TAX

1. OPEN UP A TAX-FREE SAVINGS ACCOUNT

A tax-free savings account is exactly as it sounds: your money is invested in products such as unit trusts, bonds, fixed savings accounts, among others. All of the returns such as dividends, capital gains are not taxed.

You are allowed to contribute R33,000 per tax year (1 March to 28 February; 29 February if it’s a leap year.) There is a lifetime contribution limit of R500,000. Please note that your annual contribution cannot be carried over into a new tax year e.g. if you invest R20,000 during the year, the remaining R13,000 will be forfeited. You will start every new tax year with a limit of R33,000.


2. CONTRIBUTE TO A RETIREMENT FUND

Contributions to a retirement product such as a retirement annuity or provident fund are tax deductible up to a limit of 27.5% of the larger of taxable income (to a maximum of R350,000 per year.)

A pension or provident fund will be set up by your employer and these monthly contributions will be reflected on your payslip.

Due to the fact that you aren’t able to access the money until you are 55 years old, a retirement annuity is a great way to reduce your amount of payable tax. This gives you plenty of time to save for the future while simultaneously saving on annual tax contribution.


3. KEEP A LOGBOOK IF YOU DRIVE A COMPANY CAR OR HAVE A TRAVEL ALLOWANCE

If you receive a travel allowance from your employer, it’s important to know that this is a fringe benefit and forms part of your taxable income. However, if you keep logbook of your mileage used for business, you can submit a claim for a travel deduction which can reduce your contribution to SARS.


4. CLAIM EXPENSES IF YOU’RE A FREELANCER

If you’re self-employed e.g. a freelancer; independent contractor. You are allowed to deduct business-related expenses against your annual income. For example, phone and office space (if you work from home, the room you work in counts as office space.) Ensure that you keep a record of all your expenses, supplemented by the applicable invoices.


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TAX SEASON STARTS 01 SEPTEMBER 2020
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About Eureka Accounting

Accounting and Taxation Company established in 2010.

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