Provisional Tax Payer - Hows it work?

xrapidx

xrapidx

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How does being a provisional tax payer work? I am one - but considering someone else always did my tax - have no clue what it is, or how it works.

I do know i'm supposed to submit something round about now.
 
xrapidx said:
How does being a provisional tax payer work? I am one - but considering someone else always did my tax - have no clue what it is, or how it works.

I do know i'm supposed to submit something round about now.
Click to expand...

Do you earn a salary? PAYE is deducted from that so there's no need to pay prov tax. If you earn any other income on which PAYE is not deducted then basically you make an earnings estimate for the full year, calculate the tax payable, divide by two and deduct any PAYE payed for the 6 months. (this is a rough guide). The answer is payable as prov tax, submitted as an IRP6.

There are various rules re. estimation, basing on previous assessments, penalties etc. etc.

I suggest you read up here - SARS guides

good luck!
 
Hate it. Paying so much upfront and it seems the amounts are always out, with the consequence of having to pay loads in.
 
Earn 3606 - commission.

Although the company that I do the most work for deducts PAYE... I do some private work as well...
 
xrapidx said:
Earn 3606 - commission.

Although the company that I do the most work for deducts PAYE... I do some private work as well...
Click to expand...

You probably have a tax directive i.e. they deduct say 20% flat every month PAYE.

So you will have to estimate your earnings for the year, calculate tax, deduct the 20% PAYE your employer will deduct, divide by two and voila!

There are of course a number of deductions you can probably make.

Best to speak to a tax advisor.
 
Only thing is - what do I do with the numbers? Is there a form I fill in and send to SARS in the middle of the year, etc.?
 
I'm sure you know already, don't forget to keep a list of expenses that you use for your job. Car depreciation will also be an expense. If you have an office at home you can also deduct that as an expense based on it's size. I don't know all the ins and out, I just get someone else to do! :D
 
Yeh - I saw in my other thread that depreciation must be deducted according to km's traveled for work - but my previous tax guy just sent me his calculation on my asset depreciation, and he claimed the full vehicle depreciation, not a percentage based on business km's - so now I'm confused again.
 
SiriS said:
Do you earn a salary? PAYE is deducted from that so there's no need to pay prov tax. If you earn any other income on which PAYE is not deducted then basically you make an earnings estimate for the full year, calculate the tax payable, divide by two and deduct any PAYE payed for the 6 months. (this is a rough guide). The answer is payable as prov tax, submitted as an IRP6.

There are various rules re. estimation, basing on previous assessments, penalties etc. etc.

I suggest you read up here - SARS guides

good luck!
Click to expand...

Thank you so much for the link, was wondering where I'll get the codes for my Rental income and losses...
 
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