Additional Income Tax Return

[AntennaMan]

Good day

I have been mulling over the idea of presenting a course on Udemy.

If, for the sake of argument, this course is well received and starts generating a 2nd income, how do I go about declaring this to SARS, as I really don't want to get on their bad side?

Currently my Udemy account is a personal account and I pay with Paypal. I'm guessing that if I present a course, the income will be paid into my Paypal account that will then go into my bank account. There is thus no IRP5 (as you get from an employer) or other tax certificate I can find reference to. Do I just declare this additional income when doing my efiling?

Alternatively, should I register a company (through CIPC) and open a business bank account and register this company on Udemy. Thgus the company gets paid, and me being the only employee/owner/whatever, the company pays taxes and I get a salary?

 

[jigabyte]

Good day

I have been mulling over the idea of presenting a course on Udemy.

If, for the sake of argument, this course is well received and starts generating a 2nd income, how do I go about declaring this to SARS, as I really don't want to get on their bad side?

Currently my Udemy account is a personal account and I pay with Paypal. I'm guessing that if I present a course, the income will be paid into my Paypal account that will then go into my bank account. There is thus no IRP5 (as you get from an employer) or other tax certificate I can find reference to. Do I just declare this additional income when doing my efiling?

Alternatively, should I register a company (through CIPC) and open a business bank account and register this company on Udemy. Thgus the company gets paid, and me being the only employee/owner/whatever, the company pays taxes and I get a salary?

I'm in the same situation. Will be interesting to know.

 

[-SBS-]

No need to register a company. Would just declare it as other income in your tax return. You may need to do provisional tax returns and payments, depending on the amount of the income.

 

[IziWhatNow]

Do you pay tax on what goes into your paypal account, or what gets paid out from paypal?

 

[AntennaMan]

Do you pay tax on what goes into your paypal account, or what gets paid out from paypal?

I'm guessing you will pay on what goes from your Papal account to your bank account.

 

[bchip]

Do you pay tax on what goes into your paypal account, or what gets paid out from paypal?

Anything that is accrued to you needs to be reported
It doesnt matter if Paypal hasnt paid it out.

Certain Double Tax Agreements (DTA) might compel you to pay in the other country instead
but rule of thumb is you will have to declare it in S.A.

 

[skimread]

Surely he has expenses creating the course. Like office needed, electircity, equipment and microsphone. How does he deduct that off his income on his tax return?