Calling it a “good story to tell”, Finance Minister Enoch Godongwana announced, in his first Budget Speech, welcome respite from tax increases, tax relief of R5.2 billion for individuals and businesses, as well as further measures to support businesses in their economic recovery.   

These include no increase in the fuel levy, and adjusted tax brackets and rebates for individual taxpayers. For companies, there is a reduction in the tax rate, support in the form of an increase in the Employment Tax Incentive, and a revised support scheme for businesses in distress due to Covid-19.

In this article, we provide a helpful overview of the important tax announcements made, as well as highlight a few issues mentioned in the Budget Speech to be taken note of.

 


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22A Church Street
DURBANVILLE
7550

 Tel: 021 970 4600
Fax:  021 975 6780
Email: info@sdkca.co.za
 
Website:  www.sdkca.co.za 
 

 
     
 

IMPORTANT TAX DEADLINES TO REMEMBER

  • 28 February 2022:
    Companies, Close Corporations and Trusts with February year ends 2021 tax returns

  • 28 February 2022:
    2022 second provisional tax estimates and payments for provisional individual taxpayers, Companies, Close Corporations and Trusts with February year ends.

 

IMPORTANT YEAR END CONSIDERATIONS TO REMEMBER – 28 FEBRUARY 2022

We would like to remind you of the following aspects relating to February year-end entities and all individuals.  

Companies and Close Corporations:

Dividend Declarations:

Consider whether a year-end dividend should be declared as these dividends should be declared by 28 February 2022.

Contact us to assist you with any calculations and preparation of dividend resolutions and dividend withholding tax returns.

Stock Counts (Where Applicable):

Companies:  As part of our annual audit, we will perform spot-checks on your stock records subsequent to your annual stock count.  This should take place shortly after year-end (not more than 2 working days). If we have not scheduled an appointment with you please contact us as soon as possible.

Close Corporations:  According to law you have to perform a stock count if you carry trading stock. Please ensure that you have these stock count records available in the event of an inspection by SARS.  

Individuals:

Travel allowance:

Employees in receipt of a travel allowance must maintain a logbook of business and private travel. No deduction for income tax purposes will be considered without a valid logbook. A logbook must include date of travel, destination, reason for travel and the business kilometres travelled.

Remember to record your closing kilometres (ODO reading) as at 28 February 2022.

Bank account balances:

Remember to document and send us the closing balance of your bank account(s) as at 28 February 2022.

 
     
 
March 2022 NEWSLETTER
Budget 2022: Your Share of Billions in Tax Relief and Business Support

Calling it a “good story to tell”, Finance Minister Enoch Godongwana announced, in his first Budget Speech, welcome respite from tax increases, tax relief of R5.2 billion for individuals and businesses, as well as further measures to support businesses in their economic recovery.   

These include no increase in the fuel levy, and adjusted tax brackets and rebates for individual taxpayers. For companies, there is a reduction in the tax rate, support in the form of an increase in the Employment Tax Incentive, and a revised support scheme for businesses in distress due to Covid-19.

In this article, we provide a helpful overview of the important tax announcements made, as well as highlight a few issues mentioned in the Budget Speech to be taken note of.

read more
Budget 2022: Your Tax Tables and Tax Calculator
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Individuals, special trusts, companies and small business corporations will see some relief from the Budget 2022 proposals, and to help you quantify that, and as a convenient reminder of the various other taxes that remain unchanged, we share both the official SARS Tax Tables and a link to Fin 24’s Budget Calculator (just follow the four-step process to do your own calculation).

The Tax Tables cover Individuals, Special Trusts and Trusts, Companies, Small Business Corporations, Turnover Tax for Micro Businesses and Transfer Duty.

Click on the links below each Table for the full SARS “Budget Tax Guide 2022”.
   
read more
SARS Makes SMME Tax Compliance Easier
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Tax compliance among Small, Medium and Micro Enterprises (SMMEs) has been forced into the spotlight by The South African Revenue Service (SARS) who in January launched a new monthly newsletter dedicated to the sector. The January issue covered the matter of tax compliance and revealed a number of new initiatives by SARS to streamline services and encourage smaller businesses to meet their tax obligations.

While SARS indicated that the aim of the new newsletter is to generally “share relevant information pertaining to your SMME’s tax affairs and interaction with SARS [and help] you better understand how to meet your compliance obligations” it's clear that by so comprehensively dealing with compliance in the first issue SARS has earmarked the area as being of major concern and a focus going forward. 

   
read more
Multiple Income Streams? The PAYE Dangers and a New Option for Pensioners
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A nightmare situation for many South African taxpayers is discovering after their year-end tax assessment that the PAYE they paid on various income streams during the year was not enough. The result is a substantial tax debt, which can often not be settled in time to prevent hefty late payment penalties and interest.

To avoid this happening, taxpayers with multiple incomes can request PAYE to be deducted at a higher rate than the normal tax rate during the year. In fact, from 1 March, SARS will do this automatically for pensioners with multiple incomes.

In this article we discover why there is often a tax shortfall even when PAYE is deducted from multiple income streams, and how to avoid this in future.

   
read more
Your Tax Deadlines for March 2022
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  • 7 March Monthly Pay-As-You-Earn (PAYE) submissions and payments

  • 25 March Value-Added Tax (VAT) manual submissions and payments

  • 30 March Excise Duty payments
  • 31 March End of the 2021/22 Financial year
  • 31 March Value-Added Tax (VAT) electronic submissions and payments & CIT Provisional payments where applicable

 

   
Disclaimer

The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.


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