Paying tax from Paypal

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Dreamer78692

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Hello There,

I am hoping that your can help me with this.

I currently have an FNB account linked to my Paypal account.

Now if I withdraw into my FNB account from paypal, how do I pay tax
for this. I am not a company, I tutor people online. The money is not a lot

Do I put it on my IRP 5 that my company gives, at the end of the year.
Or should I fill in a form or something. :confused:

I have money stuck in Paypal, because I do not know what the tax implications are. :cry:

Please help
 
Hi,

Thank you for responding.

I am just wondering how this works.
Say I earned 1000, which is now in my FNB account,
which I have not paid tax for yet.
Then when I do my Tax return, do I state that I earned 1000, during that year?

Then what happens, will SARS then tell me I owe them Tax or something like that.

Kind Regards
Dreamer78692
 
It doesn't matter where the money is, it only matters when the money was generated.


So you simply add all your incomes generated in the tax period together and that total value is where your tax is determined from.
 
SauRoNZA said:
It doesn't matter where the money is, it only matters when the money was generated.


So you simply add all your incomes generated in the tax period together and that total value is where your tax is determined from.
Click to expand...

So I will only know how much I owe tax on the money earned, is after I do my tax return for the previous year.

AS an example:

I earned R 1000 between 01 March 2013 and 28 February 2014, then when I do my tax return which will be after 28 Februray 2014, I disclose my R1000 as income.

Then SARS will charge tax on this money say R100.

Then I will have have to pay R100 then.

Is this how it works???
 
Well you could pre-calculate it if you want to get really hardcore but yes that's the idea.

You declare your total earnings vs valid expenses and then you either owe them money or they owe you money.

But if it's a real worry for you go in to SARS and sit down with a consultant to complete your return, they do it for free and are quite helpful.
 
Dreamer78692 said:
So I will only know how much I owe tax on the money earned, is after I do my tax return for the previous year.

AS an example:

I earned R 1000 between 01 March 2013 and 28 February 2014, then when I do my tax return which will be after 28 Februray 2014, I disclose my R1000 as income.

Then SARS will charge tax on this money say R100.

Then I will have have to pay R100 then.

Is this how it works???
Click to expand...

Yes - and then next tax year SARS will probably tell you you need to register as a provisional tax payer, in which case you need to do that process twice a year (provisionally).
 
mernst said:
Yes - and then next tax year SARS will probably tell you you need to register as a provisional tax payer, in which case you need to do that process twice a year (provisionally).
Click to expand...

I am not sure whether this applies to me since the requirements are:

Individuals below the age of 65 who do not carry on a business and whose taxable income:
will not exceed the tax threshold for the tax year; or
from interest, dividends and rental will be R10 000 or less for the tax year.
Click to expand...

I think the tax threshold is 60 000.
When they talk about tax threshold are they including your income from your salary?
 
Last edited:
yoh - so much guessing in this thread. Celine would freak out if she saw this.


There is no such thing as a threshold per se. Its derived purely from the way the rebate work.

"Tax threshold" is always primary rebate divided by the lowest tax bracket percentage...

For 2013... 11 440 / 0.18 = 63555.55
For 2014... 12 080 / 0.18 = 67111.11

Meaning you've still got taxable income but the rebate happens to kill all of it, so no actual payment. And that ladies is where this mythical "threshold" comes from...

This assumes <65 age...if more then secondary/tertiary rebate may apply & threshold is higher.

NB...you are required to submit a tax return even if you are below the threshold. i.e. you submit a return & pay nothing.

Sensorei said:
Tax threshold is R72000.
Click to expand...
No

mernst said:
Yes - and then next tax year SARS will probably tell you you need to register as a provisional tax payer, in which case you need to do that process twice a year (provisionally).
Click to expand...
Others are welcome to correct me, but I'd venture that tutoring people falls under "remuneration" and thus does not fall under any of the provisional taxation clauses.

Really though...you end up paying the same amount either way unless you fck up royally on the 1st estimate. Pro tip...basic amount.

And just for the record...the info above is entirely unreliable & probably full of mistakes. I recommend that the OP seek the advice of a professional tax practitioner instead of relying on forum posts.
 
Don't pay tax. Once they have your details you're gonna be the soft target they milk. Unless you start earning more from tutoring eg. R10000+ month. it won't matter. The government doesn't do anything for you, and they have no right to even a cent of your money.
 
gorgamin said:
Don't pay tax. Once they have your details you're gonna be the soft target they milk. Unless you start earning more from tutoring eg. R10000+ month. it won't matter. The government doesn't do anything for you, and they have no right to even a cent of your money.
Click to expand...
Worst advice ever.
 
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