Help a tax nooblet

[jackshiels]

So I used to work for a company, but those times are over and I'm basically doing freelance work from different locations (some soon to be international).

Should I sign up for ITR12 or IRP6? I've heard I should be on provisional tax because of my freelance status.

Any help is apreeeeciated.

 

[AchmatK]

You should have both. ITR12 is your income tax return to be submitted after the tax year and IRP6 is your provisional tax return submitted half yearly on estimated taxable income for the current year.

 

[jackshiels]

You should have both. ITR12 is your income tax return to be submitted after the tax year and IRP6 is your provisional tax return submitted half yearly on estimated taxable income for the current year.

So if I have both, I only pay the tax through the IRP6 yeah? The other one is just for... reasons?

 

[AchmatK]

So if I have both, I only pay the tax through the IRP6 yeah? The other one is just for... reasons?

Six months into the tax year you will need to submit your 1st IRP6. You will need to estimate what your taxable income for the entire year will be and then pay half of this tax. In the last month of the tax year you then submit the 2nd IRP6 with a new estimate for the taxable income for the year. You will then pay the tax on this less the payment made on the first IRP6.

After the tax year is complete you will submit the actual tax return based on actual figures. If you underestimated on your 2nd IRP6, this will come through on your assessment and you will then pay in the difference of the tax on the estimates and actual. If you over estimated then you will get a refund on the over payment. Your estimate must be within 90% of what eventually goes on your actual tax return.

IRP6 = tax on estimated taxable income for current year.
ITR12 = tax on actual taxable income for previous year.