TAX SERVICES FROM VALUESMART
Tax Services
Calculating tax and submitting tax returns requires an up-to-date understanding of company and taxation laws so that your business remains compliant. The law is constantly revised and when it comes to taxes, it is your responsibility as a taxpayer to submit your returns accurately and timeously. This involves knowing what is taxable, how much is taxable, and when the associated submissions are due.
Most people see tax as, well, taxing. However, it need not be at all. When your tax affairs are handled correctly, you can enjoy considerable savings and even receive money back in the form of Tax Refunds.
Call us. We can answer for all your questions.
Our services include the preparation and submissions of:
- Personal income tax returns
- Company income tax returns
- VAT returns
- PAYE, UIF and SDL returns and IRP5 certificates
- Provisional tax returns
Corporate Income Tax (CIT)
CIT, or Corporate Income Tax, is tax imposed on all companies which derive income within the borders of the Republic of South Africa.
Payment of tax on all income received by or accrued by a company within a financial year is applicable (but not limited) to:
- Listed public companies
- Unlisted public companies
- Private Companies
- Close Corporations
- Co-operatives
- Collective Investment Schemes
- Small Business Corporation (s12E)
- Body Corporates
- Share Block Companies
- Dormant Companies
- Public Benefit Companies
Personal Income Tax (PIT)
PIT, or Personal Income Tax, is tax which you are liable to pay based on your taxable income. This includes:
- Remuneration paid to you for employment which can be in the form of a salary, wages, bonuses, allowances, overtime pay, as well as taxable fringe (such as company loans or medical) benefits or certain lump sum benefits.
- Profits or losses from a trade or business
- Income or profits received as the result of being a beneficiary of a trust
- Director’s fees
- Investment income (such as interest received or foreign dividends)
- Income or losses derived from rentals
- Income received from royalties
- Annuities
- Income received from a pension
- Certain capital gains
You are liable to pay tax if your earnings exceed the minimum tax threshold for the year of assessment. There are also certain exemptions which exist that may be applicable to you.
Individual tax returns (ITR12 forms) must be submitted during tax season which runs from July-November annually. It is also worth noting that you must register for tax within 60 days of becoming liable. PIT, or Personal Income Tax, is a tax which you are liable to pay based on your taxable income.
This includes:
- Remuneration paid to you for employment can be in the form of a salary, wages, bonuses, allowances, overtime pay, as well as taxable fringe (such as company loans or medical) benefits or certain lump sum benefits.
- Profits or losses from a trade or business
- Income or profits received as the result of being a beneficiary of a trust
- Director’s fees
- Investment income (such as interest received or foreign dividends)
- Income or losses derived from rentals
- Income received from royalties
- Annuities
- Income received from a pension
- Certain capital gains
As the threshold changes each year and the amounts also vary depending on your age, we recommend that you refer to either registered tax practitioners or SARS to find out if and how much you may need to pay.
Valued Added Tax (VAT) is an indirect tax which is added to goods and services as means of collecting tax on behalf of the government. VAT is currently levied at 14% and is charged at each stage throughout production and distribution phases of goods and services.
It is compulsory to pay VAT but your annual turnover will determine if it is mandatory for you to register to charge VAT.
VAT is payable by individuals and business entities. We can assist with both your personal and company VAT submissions.
Employees’ Tax: PAYE, UIF and SDL returns and IRP5 certificates Employees’ Tax (withheld or deductible amounts which need to be paid by an employer to SARS) includes: PAYE, UIF, SDL and/or ETI (Employment Tax Incentive), if applicable.
More information can be found below.
PAYE Returns
This is the tax that employers are required to deduct from an employee’s remuneration (paid or payable) and pay over to SARS. This process is referred to as Pay-As-You-Earn (PAYE) as deductions are made as the remuneration is earned.
UIF Returns
The Unemployment Insurance Fund (UIF) provides short-term funding to individuals who are unable to work due to unemployment, maternity, illness, or adoption leave.
Both employers and employees need to contribute to the UIF and the amount payable is based on a specific percentage of the employee’s remuneration received from their employer. However, the employer is responsible for deducting and paying the full contribution amount.
SDL Returns
The Skills Development Levy (SDL) is a levy imposed by government to collect funding which is used to further develop and improve employees’ skills. The funds are distributed among the various, relevant SETA’s (Sector Education and Training Authority).
IRP5 Certificates
An employer must prepare IRP5 or IT3(a) certificates annually for each of their employees. These certificates reflect the total amount of remuneration received as well as the total amount of deductions for the year of assessment. These certificates should be prepared within 60 days of the end of the financial year.
Employers must then submit the IRP5 or IT3(a) certificates to SARS on behalf of their employees and provide each employee with a copy of their individual certificate so that they may, in turn, prepare their personal income tax returns.
An IRP5 is prepared for employees who have had tax deducted from their earnings and where these deductions have been paid over to SARS by their employers on their behalf.
An IT3(a) is prepared for employees who have not had tax deducted from their earnings.
Both IRP5 and IT3(a) certificates should also be prepared for employees who have left the company during the course of the year of assessment.
Provisional Tax Returns
Provisional tax is an advance payment of forecasted payable income tax (tax liability) during the tax year. Generally a provisional tax payer would need to make two provisional tax payments in a single year of assessment: one six months into the year and another at the end of the year. The year of assessment will coincide with your fiscal or financial year.
The amounts to be paid are calculated on your estimated taxable income and the calculations need to be declared and submitted to SARS by way of an IRP6 form.
Calculating tax and submitting tax returns requires an up-to-date understanding of company and taxation laws so that your business remains compliant. The law is constantly revised and when it comes to taxes, it is your responsibility as a taxpayer to submit your returns accurately and timeously. This involves knowing what is taxable, how much is taxable, and when the associated submissions are due.
Most people see tax as, well, taxing. However, it need not be at all. When your tax affairs are handled correctly, you can enjoy considerable savings and even receive money back in the form of Tax Refunds.