Tips For February From Our Experts At Northbound

by | Feb 18, 2023 | Tips from Northbound | 0 comments

February And All Its Deadlines

By Cavel Koert | SAIPA

Key Relationship Manager

Cavel has a National Higher Certificate and National Diploma in Accounting and a BTech in Internal Auditing. She is also part of SAIPA.

February is one of the months that is our busiest, with all the deadlines that are looming. We would just like to remind all clients to please send all information timeously to ensure that we can keep them compliant at all times. We would also like to thank the clients for working with us and cooperating to ensure that we get all the relevant information in order for us to prepare their various submissions.

Provisional Tax Time With Regards To The 2023 2nd Period

By Laverne Geswint | GTP – (SA) SAIT

General Tax Practitioner South Africa

Laverne has more than 18 years experience as a tax practitioner with a BCOMPT in Accounting Science, majoring in Taxation (UNISA). She also has a Postgraduate Diploma in Taxation (UNISA) and is part of SAIT.

  • The first month of the year has flown by and we are already halfway through February.
  • As most of you are aware, it’s provisional tax time.
  • Provisional tax is not a separate tax from income tax. It is a method of paying your income tax liability in advance, to ensure that you do not have a large tax debt on assessment.
  • Provisional tax allows your tax liability for a particular tax year to be spread over the relevant year of assessment so payment can be made in manageable portions to SARS.
  • It requires the taxpayers to pay at least two amounts in advance, (In August and February) during the year of assessment, which is based on estimated taxable income or actual income for the tax year.
  • A third payment is optional after the end of the tax year and needs to be made by September.
  • On assessment, the provisional payments will be offset against the liability for regular tax for the applicable year of assessment.
  • It is compulsory for all provisional taxpayers to submit provisional tax returns so that they remain tax compliant with SARS.
  • Provisional taxpayers also include all trusts, all companies, and all CC’s, and certain individuals who receive any income other than remuneration, such as rental income, interest income, etc.
  • For individuals, a provisional taxpayer is defined in paragraph 1 of the Fourth Schedule of the Income Tax Act, No.58 of 1962, as any –
    • a natural person who derives income, other than remuneration (salary) or an allowance or advance as mentioned in section 8(1) or who derives remuneration from an employer who is not registered for employees’ tax.
  • The due date for the 2023 2nd provisional tax returns and payments is 28 February 2023.
  • We will make sure your 2023 2nd provisional tax return is submitted to SARS before then.
  • Please make sure all payments are made to SARS before the due date as late payments will accrue interest and penalties.

What Is Happening At Northbound in February 2023?

By Cornel Gouws | CA (SA)

Key Relationship Manager

Cornel has a B Com (Rationum) in Accounting & Business Management and a B Com ( Hons) in Accounting. He is also part of CA (SA) and SAICA.

  • Finalisation of annual financial statements (AFS) and tax returns for companies and CC’s year ended 28 February 2022.

  • Drafting of AFS for our year end 31 Dec 2022 clients.

  • Provisional tax calculations and IRP6 submissions for the year ended 28 Feb 2023.

  • Completion of client payrolls with a view to submitting EMP501’s by 31 May 2023.

  • A new staff member, Kelly Fillis, joined our team on 6 Feb 2023. You are welcome to reach out to her (kelly@nbfin.co.za) regarding your payroll requirements.

  • Planning the year ahead from March 2023 onwards.

  • A few ad hoc projects we are assisting our clients with.