WVDW FINANCIAL SERVICES INC
Frequently Asked Questions And Answers
We compiled a list of frequently asked questions that we get all the time. We thought it well to share these questions and answers with our inquisitive website visitors. If we missed something please contact us with your question.
What Is An IRP6?
An IRP6 is a return for payment of provisional tax.
I Save In A Bank Account For My Retirement, Will SARS Allow This As A Deduction?
I Receive Income From Two Sources. Why Is My PAYE Not Enough To Cover My Final Tax Liability On Assessment?
This is due to the manner your respective employers are calculating your tax liability on assessment.
Who Is Responsible For Collecting Estate Duty?
SARS is responsible for collecting Estate Duty.
Do You Pay Tax When You Have A Business Trust?
Yes-profits are taxed by SARS, at a rate of 45%.
When Should I Submit A Personal Tax Return To SARS?
- When you conduct any trade (own business) in South Africa.
- If you’re a South African tax resident who conducted any trade.
- If you received an allowance such as a travel, subsistence or office bearer allowance. (Check your IRP5/IT3(a) if you are unsure.
- If you hold any funds in foreign currency or assets outside South Africa that have a combined total value of more than R225 000 at any stage during the tax year.
- If you have Capital Gains or Capital Losses exceeding R40 000.
- If you had any income or Capital Gain from funds in foreign currency or assets outside the Republic attributed to you.
- If you hold any rights in a Controlled Foreign Company.
- If you’ve received an Income Tax Return or if you were asked to submit an Income Tax Return for the tax year.
Which Expenses Can I Deduct To Lower My Tax?
- Office Supplies
- Insurance Fees
- Legal Fees
- Phone Costs
- Promotion Costs
What Are The Requirements For A VAT Registered Business?
- Include VAT in all prices
- Charge and collect VAT
- Submit Returns and Payments
- Issue Tax Invoices
- Maintain Adequate Records
What Are The Tax Responsibilities Of A Small Business (Private Company)?
- Declare CIT annually on an ITR14
- Register for VAT if you qualify
- Register for PAYE if you qualify
- Pay taxes on time always
When Should Company Income Tax (CIT) Be Submitted?
Submit once a year as per company’s Financial Year End and make use of the ITR14 form.
When Should I Submit Personal Income Tax?
Submit once a year as announced by SARS during filing season and make use of the ITR12 form.
When Should A Company Submit PAYE?
Submit monthly on or before the 7th and make use of the EMP201 form.
When Should I Submit Provisional Tax?
Submit twice a year and make use of the IRP6 form.
When Should A Company Submit VAT?
Submit every two months before the 25th and make use of the VAT201 form.
How Do I Know How Much Tax I Owe SARS?
- Call the SARS contact Centre and request a statement of account.
- Login to eFiling and request a statement of account.
- Login to SARS Mobi App and request a statment of account.
- Call WvdW and we’ll help.
Can You Help Me With Requesting My Tax Number?
Yes.
Can You Help Me Obtain My Tax Compliance Status?
Yes.
When Should A Company Deduct Money For Skills Development Levy (SDL)?
SDL are due by employers who are registered and whose total employee salaries are more than R500 000 a year.
Who Should Submit CIPC Returns?
All companies and Close Corporations are required by law to lodge their annual returns with CIPC.
Can I Claim For Home Office Expenses?
The Home Office must be occupied for purposes of a trade. Legal requirements have not changed for claiming a home office expenses deduction. Salaried Employees can claim if they worked from home and meet the Income Tax Act requirements.
Which Taxes Will My Executor Deal With?
- Income Tax
- Capital Gains Tax
- Estate Duty
When Will A Deceased Estate Be Finalised?
A deceased Estate will be finalised when all your Tax Affairs have been fully settled with SARS.
What Are The Different Types Of Trusts You Get In South Africa?
- Living (Inter Vivos) Trust
- Testamentary (Mortis Causa) Trust
- Business Trust
What Are The Advantages Of Having A Trust?
- It reduces Capital Gains Tax
- There are no Estate or Transfer Duties
- Your assests are protected from creditors
Is A Business Trust Legally Required To Hire An Auditor?
No.
Is A Business Trust Legally Required To Disclose Financial Statements?
No.
Is A Business Trust Legally Required To Pay Annual Fees To The Registrar?
No.
Who Can Be Selected For A SARS Audit?
Anyone who pays tax can be selected for a SARS Audit.
What Does Tax Risk Insurance Cover?
- Income Tax Audits
- VAT
- Employees Tax Audits
- Capital Gains Tax Audits
- Dispute Resolution Hearings
- Appeals to the Tax Board | Court