Outsourcing tax preparation ensures that the tax returns like ITR12, IT14, IRP6, IT56 are prepared without errors or omissions. Outsourcing tax returns guarantees their timely filing with the concerned authorities, thus avoiding penalties and legal consequences.
VAT (Value Added Tax)
- VAT Payable / Refundable are calculated every period
- VAT Returns are completed and submitted to SARS
- Proof of submission and payment (if applicable) is obtained and stored on file for you
- We can also register your company for VAT
- All correspondence with SARS relating to VAT is kept on file in case of future queries
Value Added Tax is an indirect tax that is gathered by vendors on behalf of the government. The tax normally applies to the delivery of services or goods and is charged at a rate of 14% on the value of goods or services sold. VAT registration is required for enterprises earning in excess of R1 000 000 per annum, however you may register voluntary should your turnover exceed R50 000 over a 12 month period. Once you have registered for VAT you will be required to submit returns to SARS at one, two, four, six or twelve monthly intervals.
Provisional Tax for Business and Individuals
- Provisional Tax Returns are completed and submitted
- Proof of submission and payment (if applicable) is obtained for future reference
- Should the need arise, extensions for submission of forms can be obtained and deferred payment arrangements can be made with SARS
Income Tax for Business and Individuals
- Income Tax Returns are completed and submitted
- Proof of submission is obtained for future reference
- We can also arrange for extensions for submission of forms and deferred payment arrangements with SARS
- If you are not registered for Income Tax, we will arrange the registration
- All correspondence with SARS relating to Income Tax is stored on file
You need to submit a IRP6 return if:
- You have interest income that exceeds the exemption threshold ( R22 000 for persons under the age of 65 and R32 000 for persons over the age of 65)
- If you are in receipt of business income which results in a tax obligation
You do not need to submit a IRP6 return if:
- You only receive remuneration that is subject to PAYE
- Your business income after expenses and deductions is below the threshold
- Your interest income is below the tax threshold (as above)
A business may need to register for various forms of tax.
Taxes such as Pay As You Earn (PAYE) this is an employee tax, for if any one employee earns a salary of more than the tax threshold per annum. UIF (Unemployment Insurance Fund) registration is for company where any employee that earns a salary. SDL (Skills Development Levy) is a compulsory levy scheme for companies, with payrolls in excess of R500 000 per annum, brought into effect to raise funds with the purpose of assisting the government with funding for training and education.
Company’s tax periods vary however in most instances also has their tax year ends on the 28 February every year.
The new penalties system came into effect on the 1 January 2009 and provides for stringent penalties for non-compliance, which are determined according to the taxpayer’s taxable income and range from R250 up to R16 000 per month. Penalties can be levied for a range of non-compliance offences such as:
- Failure to register as a taxpayer
- Failure to notify SARS of a change of address or other personal details
- Non submission of supporting documents required by SARS
- Failure to submit SARS Tax returns