SARS E-Filing 2020/21

V

Veroland

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Aug 24, 2005
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surface said:
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 ?
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I think it is random in most cases. I have disability claims so I get selected every year.
 
X

xbmcfan

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Aug 7, 2013
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Gudnews said:
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?
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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

surface

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Gudnews said:
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?
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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?

businesstech.co.za

Here are the basic taxes you should know about if you’re investing your money

Two investments may offer identical returns, but the realised after-tax returns can look substantially different, says Kelin Pottier, product development specialist at 10X Investments.
businesstech.co.za businesstech.co.za

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).
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Gudnews

Gudnews

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xbmcfan said:
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)
Click to expand...
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

Gudnews

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surface said:
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?

businesstech.co.za

Here are the basic taxes you should know about if you’re investing your money

Two investments may offer identical returns, but the realised after-tax returns can look substantially different, says Kelin Pottier, product development specialist at 10X Investments.
businesstech.co.za businesstech.co.za
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Pretty much what I think as well. I had asked a fella on Reddit and he gave me that Italised reply.
 
surface

surface

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Submitted return on 21st (Saturday night), got refund just now. Well done SARS - this is exceptional.
 
surface

surface

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bar1 said:
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?
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Take your time. SARS has listened to you and wish you all the best. :ROFL:
 
surface

surface

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R13... said:
If I knew I'd not have spent my weekend doing taxes, I would have procrastinated to 1 Dec :D
www.news24.com

SARS extends tax return deadline | Fin24

SARS has extended the filing season deadline for non-provisional individual taxpayers from 23 November 2021 to 2 December 2021.
www.news24.com www.news24.com
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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

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May 21, 2009
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Finally did the sars return and submitted.

Thanks for link to Tim for home office expenses.
 
P

Pansyfaust

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Nov 8, 2010
Messages
407
prOd said:
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
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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/
 
R

r4nd0m

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Dec 29, 2016
Messages
739
Pansyfaust said:
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/
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www.absa.co.za

Absa | The guidance and support to help you learn to trade.

We’ll help you learn to trade and support you in advancing to becoming a skilled and informed trader.
www.absa.co.za www.absa.co.za

They have a TFSA account, which is pretty decent.
 
R

r4nd0m

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Dec 29, 2016
Messages
739
surface said:
For 100K, their rate is 3.6% - am I reading it correctly or is it 3.6% above CPI ?
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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:
www.absa.co.za

Absa | Open a Tax-free Savings Account and save on tax

With a tax-free savings account all your interest earned belongs to you when you keep the R33 000 annual limit on contributions and a R500 000 lifetime limit.
www.absa.co.za www.absa.co.za

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