Twitch Revenue -> Withdraw

aggressiveGrey

aggressiveGrey

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Not sure if anyone has been through this, but im facing a problem.

I want to make a once off withdrawl from paypal to bank account, its quite a good amount of USD too, but apparently because its "extra income" i would have to start then submitting to sars.

I currently don't because I don't clear the income threshold from my normal job. (plus i don't know anything about SARS related stuff lol)

So exactly how would i do this - seems quite backwards to do so, for a once off payment into my bank account.
 
Just withdraw. If the bank contacts you, then say something.

I don't see why Tax is an issue for a once off withdrawal.
 
Yes all income is taxable even once off income. But I would not bother. You can just apologize later if it becomes a problem.
 
Just to be clear - even if the amount is quite large (couple thousand usd)
 
Belligerence said:
Just to be clear - even if the amount is quite large (couple thousand usd)
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Definitely. Red flag.
Tax will need to be paid as Rietrot said. If it was a few USD then I don't see an issue.
 
|tera| said:
Definitely. Red flag.
Tax will need to be paid as Rietrot said. If it was a few USD then I don't see an issue.
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I guess thats where im failing to see past.. like if i knew where to pay said tax without doing the whole efilling thing and submitting expenses against it bla bla bla.


lol Can't tax be paid once off and be like "its done now" instead of going through the long ass process.
 
Belligerence said:
I guess thats where im failing to see past.. like if i knew where to pay said tax without doing the whole efilling thing and submitting expenses against it bla bla bla.


lol Can't tax be paid once off and be like "its done now" instead of going through the long ass process.
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Nope.
 
That kinda annoys me tbh, but i guess im ignorant to the whole tax thing.

To me i cannot understand the logic of - ok you want this money? Sure now setup a random business name and go through all your expenses incase you want to claim against it and bla and bla.

Like im not setting up a business xD i just want sars to be like, gimme money. then done LMFAO.

Ignorance is bliss i guess.
 
|tera| said:
Definitely. Red flag.
Tax will need to be paid as Rietrot said. If it was a few USD then I don't see an issue.
Click to expand...

Remember that if they want to tax you on the amount, please remember tje following

Taxable Income is income accumulated over a tax year:
1 March to 28/9 Febraury.

Its not clear if you earn the USD in one tax period. You might not meet the threshold if over multiple years.

Secondly, as it is an income, you can deduct the expenses related to the income.

Assets, SARS give a wear and tear allowance. There is a schedule.

Expenses, anything you spent in the production of income unless SARS expressedly forbid you deduct can be deducted.

Not a tax practioner, so above advice must be taken with a pinch of salt but as you said, you know even less than me w.r.t. tax matters.
 
Belligerence said:
That kinda annoys me tbh, but i guess im ignorant to the whole tax thing.

To me i cannot understand the logic of - ok you want this money? Sure now setup a random business name and go through all your expenses incase you want to claim against it and bla and bla.

Like im not setting up a business xD i just want sars to be like, gimme money. then done LMFAO.

Ignorance is bliss i guess.
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You don't need a business to pay Tax.
Just ask your HR department or Accounts department to help you with filing it.
 
So example, you earn
$5000 in a tax year. (Not sure which exchange rate to use as not an accountant or tax praxtioner) but lets say it was R75000.

You purchase equipment to enable you to twitch??? PC, Camera, microphone, headphone, video editing software?????

These are assets, and you can claim an allowance on it. I.e SARS says PC as a useful life of 3 years. So PC cost divided by 3 equals what you can claim. There is a SARS schedule which tells the useful life of each asset.


You pay for internet, these are an expense, so can be deducted etc.


So this might reduced the amount of tax you need to pay.
 
|tera| said:
His current workplace should be able to sort him out. Even if it's only doing the guy a favour.
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A professional would be better, a lot of workplace finance people don't stay up to date on all the current loopholes and best practices.
 
rh1 said:
Payroll tend to know the things they deal with on a daily basis. This will be out of their knowledge and experience.
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Depends really on his workplace.
I've been in Corporate where most of my income tax was handled by HR. They guided us on filing returns etc.
It's more common than you might know. :)
 
|tera| said:
Depends really on his workplace.
I've been in Corporate where most of my income tax was handled by HR. They guided us on filing returns etc.
It's more common than you might know. :)
Click to expand...
Then you are lucky. Very few payroll clerks can give advice on tax matters outside of normal salary income/deductions. And nor should they be.
 
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