Individual taxation

  • Submission of provisional taxes
    • Completion and submission of the IRP6 on eFiling.
    • Provisional tax is not a separate tax from income tax. It is a method of paying the income tax liability in advance, to ensure that the taxpayer does not remain with a large tax debt on assessment.
    • Provisional taxpayers are people who earn income other than a salary/remuneration. If you get income such as rental income from a property, interest income from investments or other income from a trade, you will always be a provisional taxpayer, even if you also earn a salary.
    • The first provisional tax payment must be made within 6 months of the start of the year of assessment. For year of assessment beginning March, this will be the 31st of August. The second payment must be made no later than the last working day of the year of assessment. This will be the 28/29th of February unless of course these days fall on the weekend then the payment is due on the Friday preceding these dates.
  • Submission of individual annual income tax returns
    • Completion and submission of the ITR12 on eFiling
    • Provisional taxpayers also complete ITR12s
    • Tax season opens on 1 July 2019 and closes on 4 December 2019 for eFilers. The closing date is extended to 31 January 2020 if you are a provisional taxpayer.
    • You do not have to pay tax if your annual income is less than R78 150 and you are younger than 65 years old. If you are older than 65 years then this amount increases to R135 300 per year of assessment.
    • SARS made the announcement that you do not need to submit an ITR12 if you earn less than R500 000 taxable income per year of assessment. However, it is advisable to submit a return regardless, especially if you are a medical aid, retirement fund, provident fund or pension fund contributor as well as earn a travel allowance, or commission or make donations to Sec18A organisations in order to maximise your tax refund.
  • Notice of Asssessment ITA34
    • We will submit all documentation via eFiling if you are selected for verification by SARS
  • Visiting a SARS branch
    • By appointing us as your preferred tax practitioners, we will gladly visit a branch on your behalf to submit original documents such as proof of banking details or lodge objections against an assessment or a decision by SARS. These objections may be for additional taxes, administration fees or penalties. Objections may also be lodged on line using eFiling within 30 business days from the assessment being issued.
  • Special requests
    • We will also electronically submit the following:
      • Request for reasons – reason for assessments where the grounds provided in the assessment do not sufficiently enable the taxpayer to understand the basis for assessment and to formulate an objection, where the taxpayer is aggrieved by the assessment. This automatically extends the period for objection if found to be valid
      • Request for late submission of a dispute
      • Request suspension of payment
      • Request for remission (RFR01) – disputing admin fees, before an objection is submitted
      • Suspension of payment can be requested with a dispute at a branch and not via eFiling as eFiling only supports standalone suspension of payment and not suspension with dispute.

Company taxation

  • Completion of IRP6s
    • 1st provisional payment due 6 months after company’s financial year end
    • 2nd provisional payment due on the last working day of the company’s financial year
  • Tax computation preparation
  • Completion of ITR14 – annual company tax return
  • Completion of supplementary schedules IT14SD
  • Notice of Asssessment ITA34
    • We will submit all documentation via eFiling if you are selected for verification by SARS
  • Special requests
    • We will also electronically submit the following:
      • Request for reasons – reason for assessments where the grounds provided in the assessment do not sufficiently enable the taxpayer to understand the basis for assessment and to formulate an objection, where the taxpayer is aggrieved by the assessment. This automatically extends the period for objection if found to be valid
      • Request for late submission of a dispute
      • Request suspension of payment
      • Request for remission (RFR01) – disputing admin fees, before an objection is submitted
      • Suspension of payment can be requested with a dispute at a branch and not via eFiling as eFiling only supports standalone suspension of payment and not suspension with dispute.

Value Added Taxation (VAT)

  • VAT is an indirect tax on the value of goods and services by suppliers and vendors.
  • The rate of VAT is 15% over and above the value of goods and services
  • VAT registration
    • It is mandatory to register for VAT if the total value of taxable goods or services exceeds R1million in a 12 month period
      • It is a criminal offence not to be VAT registered
      • Interest and penalties will be levied on any payments due to SARS
    • Voluntary registration is also possible if the income earned in the past 12 months exceeded R50 000.
    • Registration is necessary within 21 days from date of exceeding the R1million
    • To register for VAT
      • A VAT registration form – VAT101 – should be completed and submitted physically at a local branch
      • ERH Accountants will do the registration on your behalf to ensure efficiency and accuracy.
    • Other documents required to register for VAT
      • Company registration number / or if an individual – an identity document
      • A business bank account
      • Record of the actual or expected total value of taxable supplies, will include and not limited to:
        • Signed financial statements
        • Copies of invoices
        • Sale agreements
        • Signed contracts
      • Proof of address in South Africa
    • VAT deregistration
      • if the total value of taxable goods or services falls below R1million in a 12 month period
      • all business activities have ceased
      • notify SARS within 21 days of discontinuing the business
      • VAT is still liable during the period of being a VAT vendor
    • Completion of VAT201 on eFiling
      • We will do both the output and input VAT calculations, in line with the VAT Act.