SARS E-Filing 2020/21

Veroland

Executive Member
Joined
Aug 24, 2005
Messages
6,102
How does one get selected for audit/verification? Is it one of those random things which can affect even straight forward income tax return (e.g. if it is only one income source from one IRP5, I would say it should be straight forward) Or is it only for things like WFH/claiming more expense than rental profit etc ?
I think it is random in most cases. I have disability claims so I get selected every year.
 

xbmcfan

Senior Member
Joined
Aug 7, 2013
Messages
575
But let's say you didn't wait five years. Bought shares for R10,000 in 2020. In 2021 it is worth R15,000.

You sell it, and the profit is R5000. As SARS considers this trader behavior, you will be taxed at the full profit amount.


So if throughout the year you keep buying and selling, you need to keep record of it all for taxation purposes.

SARS gets this information anyway. But you still need to file it with your taxes and pay anything due.

If you don't pay in time, SARS can calculate interest on unpaid taxes.


Is the bolded part correct? If so, what is the tax rate?

Hi

Do you put profit on shares sold, revenue of nature(held < 3 years) under code 4214 - other income or some place else?
Easy Equities only show the code 4250 which is Profit on shares sold, capital gain(shares held > 3 years)
 

surface

Honorary Master
Joined
Oct 23, 2006
Messages
19,329
If you bought shares as a capital investment for say R100k and after five years it is worth R150k.

You sell it and make a profit of 50k.

The first 40,000 isn't taxed. So you are only taxed on the remaining profit which is 10k.

The capital gains tax is only calculated on 40% on that. So 40% of 10,000. Which is R4000.

You will then only be taxed on that amount.



But let's say you didn't wait five years. Bought shares for R10,000 in 2020. In 2021 it is worth R15,000.

You sell it, and the profit is R5000. As SARS considers this trader behavior, you will be taxed at the full profit amount.


So if throughout the year you keep buying and selling, you need to keep record of it all for taxation purposes.

SARS gets this information anyway. But you still need to file it with your taxes and pay anything due.

If you don't pay in time, SARS can calculate interest on unpaid taxes.


Is the bolded part correct? If so, what is the tax rate?
If I read below correctly, first 40K is exempt when you sell shares - whether it is after 5 years or 1 day doesn't seem relevant?


When you sell an investment in a collective investment scheme (ETF or unit trust) for more than you paid for it, the profit is known as a capital gain. The first R40,000 is exempt, but the rest is liable for Capital Gains Tax (CGT).
 

Gudnews

Expert Member
Joined
Oct 13, 2014
Messages
1,350
Hi

Do you put profit on shares sold, revenue of nature(held < 3 years) under code 4214 - other income or some place else?
Easy Equities only show the code 4250 which is Profit on shares sold, capital gain(shares held > 3 years)
This question is above my knowledge I'm afraid to say. I only expect to deal with the scenario I posted next tax season.
 

Gudnews

Expert Member
Joined
Oct 13, 2014
Messages
1,350
If I read below correctly, first 40K is exempt when you sell shares - whether it is after 5 years or 1 day doesn't seem relevant?

Pretty much what I think as well. I had asked a fella on Reddit and he gave me that Italised reply.
 

surface

Honorary Master
Joined
Oct 23, 2006
Messages
19,329
Submitted return on 21st (Saturday night), got refund just now. Well done SARS - this is exceptional.
 

surface

Honorary Master
Joined
Oct 23, 2006
Messages
19,329
So i am busy with the return now...last minute i know :)
I use the taxtim: home-office-expense-calculator and i get an "Total Home Office Deduction: " amount,
is that the amount i use on: efiling 4028? is there anything else i need to do?

is Low value office equipment also goes under 4028?
Take your time. SARS has listened to you and wish you all the best. :ROFL:
 

surface

Honorary Master
Joined
Oct 23, 2006
Messages
19,329
If I knew I'd not have spent my weekend doing taxes, I would have procrastinated to 1 Dec :D
I could have done it in July but Sygnia messed up and then SARS messed up. Glad I sorted it out though. Out of the way finally.
 
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Saba'a

Executive Member
Joined
May 21, 2009
Messages
6,883
Finally did the sars return and submitted.

Thanks for link to Tim for home office expenses.
 

Pansyfaust

Well-Known Member
Joined
Nov 8, 2010
Messages
394
Okay I am beyond pissed at ABSA. Because of their f#ckup and my laziness I now owe SARS a cool R8k for over contributing on my tax free accounts...

In short, when I moved my tax free in Nov. 2020 to EE, ABSA sent them an incorrect tax certificate with a contribution of ±R7000 for the year (it was actually ±R29000 at that point). And because I forgot what I contributed and took the ±R7000 contributions as accurate, I also contributed to my EE tax free once the money was transferred.

I should've checked to make sure, but still...they should not have submitted incorrect information to EE. Fuuuu
No offense, but why in the name of Cthulu are you contributing to a tax free savings account with ABSA? What kind of product are they offering that makes it worthwhile? Is it this? https://www.absa.co.za/personal/save-invest/products/absa-tax-free-savings-account/
 

r4nd0m

Senior Member
Joined
Dec 29, 2016
Messages
599
No offense, but why in the name of Cthulu are you contributing to a tax free savings account with ABSA? What kind of product are they offering that makes it worthwhile? Is it this? https://www.absa.co.za/personal/save-invest/products/absa-tax-free-savings-account/

They have a TFSA account, which is pretty decent.
 

r4nd0m

Senior Member
Joined
Dec 29, 2016
Messages
599
For 100K, their rate is 3.6% - am I reading it correctly or is it 3.6% above CPI ?
Not sure what you're referring to, but I am guessing it's a interest based savings TFSA.

They also have a TFSA investment account where you can buy and sell ETFs:

This functions similar to a TFSA brokerage account like you get with EE.
 
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