SARS and Paypal Earnings

[BlackJack1301]

So over the last couple of months i have been developing and creating some apps and earning a few Dollars on the side.

It started off slowly and has gained a little bit of momentum, still nothing serious, but anyway, I withdraw the money from FNB and everything is documented etc.

I was wondering how much can i expect to be taxed on this. In other words how much do i have to put away for the day i have to pay up? Is there a minimum that is exempt, or is there a fixed percentage no matter how little it is, I assume come tax season i declare the total earned up to that point.

Any help or anyone with similar earnings with some input would be highly appreciated.

 

[AchmatK]

How long is a piece of string?

Basically you will add it on your tax return, claim all allowable deductions. The net amount is then added to your other taxable income and taxed at your marginal rate.

South Africa has a progressive tax system. The more you earn, the higher your marginal tax rate.

You might also need to submit two provisional tax returns every year.

Hope this helps.

 

[airborne]

It's income so it gets taxed like any other income you'd earn in Sa, ie you will pay tax at whatever tax bracket/rate you fall into at the end of the financial year for your combined yearly income from all sources, which may mean that you aren't liable to pay any tax or you will pay tax like a boss.

Any net taxable income below around R70k won't incur any tax at the current tax brackets, though I stand to be corrected it is in that ballpark.

If it starts adding up I'd advise also keeping a record and invoices of expenses incurred to generate the income.

 

[halfmoonforever]

Your current Salaray + Whatever Else you Earn = Tax Bracket you are in = https://www.taxtim.com/za/calculators/income-tax2

 

[BlackJack1301]

OK cool makes sense, thanks!

Yeah will have to keep record of everything. So when i submit i capture my details from my company as provided and add the external earnings from when it started till the time of submission, then next year the same, or next time i capture... Makes sense.

Thanks.