2oceansvibe News | South African and international news

Sponsored by RSAWeb rss
2ov Radio
  • Home
  • About
    • Terms and Conditions
    • Seth Rotherham
  • du Cap Collection
  • Café du Cap
  • Cabine du Cap
  • Media Packs / Advertising
  • Contact
    • Contact
    • Anonymous Tips
    • Twitter
    • Facebook
Seth Rotherham
  • Earning Secret Airbnb Cash? SARS Will Have You

    12 Mar 2021 by Jasmine Stone in Finance, Galbraith Rushby, Lifestyle, Money, Partners, South Africa
    Related Posts
    • Shrek’s Swamp Cabin Just Listed On Airbnb
    • Thursday Morning Spice
    • Survey Shows Many South Africans Simply Don't Know What To Do About Their Finances
    • Why You Should Probably Use A Registered Practitioner For 2023 Tax Filing Season Instead Of 'Winging It'
    • Local Firm Goes Big Time With Exciting New Merger

    [imagesource:here]

    Over the past year, countless properties that flourished as Airbnb rentals have turned to long-term renting, with local and international travel grinding to a halt.

    If you are still making some nice cash on the side via an Airbnb rental, consider this your warning – SARS is watching, and issued a statement yesterday emphasising the need for taxpayers to declare all rental income.

    More from the SARS statement:

    A property owner is also required to register as a VAT vendor with the accompanying obligations, if the short-term rental income exceeds R1-million in a 12 month period.

    SARS is working hard to provide clarity and certainty for taxpayers to enable them to meet their obligations effortlessly. We also strive to make it easy for taxpayers who are willing to comply…

    We are however, equally determined to make it hard and costly for non-compliant taxpayers not willing to meet their obligations. We are working hard to improve system capabilities, in order to detect those taxpayers who do not comply by using data to identify risk.

    That’s a polite way of saying if you choose not to comply, SARS will come down on you, having stated that there is a high degree of non-compliance in this sector at present.

    Those knives are being sharpened:

    Property owners who, to date, have not declared rental income are encouraged to regularise their affairs with immediate effect. Affected Taxpayers may choose to use Voluntary Disclosure Programme (VDP) which offers more favourable terms.

    Failure to regularise your affairs, may place taxpayers at risk and should they be selected by SARS for an audit, the more stringent normal processes will apply.

    Given that SARS needs to fill some serious shortfalls, now is not the time to take risks. If you’re in doubt, consult an expert.

    The statement goes on to say that those who don’t play ball could suffer “administrative penalties being imposed in addition to interest, or even criminal action”.

    Business Insider SA spoke with Doelie Lessing, a director at law firm Werksmans, who said it won’t be all that hard for SARS to catch people out:

    [She] says it may be relatively straightforward for SARS to confirm undeclared income from Airbnb. Verifying who owns a property is one of the easiest assets for SARS to confirm, she says. Properties listed on Airbnb could then be potentially cross referenced to confirm hosts.

    If you rent your property out for so much as a single day, you’re legally obliged to report that income to SARS.

    In fact, if you let even a single room, you’re supposed to declare that, although you can obviously use expenses related to the letting of the property to reduce the amount you pay taxes on.

    Recently, the Sunday Times Business section laid out how this would work with a really simple example of somebody who let their property out for a week:

    • Income received from rental: R10,000

    You then work out the expenses related to the rental:

    • Online platform booking commission: R1,000
    • Cleaning services: R500

    This would leave a profit of R8 500, which is the amount you will pay tax on when you declare the income and expenses to SARS.

    You can also further reduce the profit you’ll pay tax on by using expenses like bond repayments, gardening services, rates and taxes, insurance, security, and more.

    In short, nothing is ever as simple as the example I provided above, which is why it’s probably prudent to bring in an accounting firm like Galbraith | Rushby to guide you through the ins and outs.

    SARS has stated it is on the warpath, so good luck if you’re going it alone.

    [sources:sars&businsidersa&sundaytimes]

    • ← #BringBackPiers Isn’t Exactly Going To Plan
    • Four Minutes Flat: How Africa’s Richest Woman Went From Billionaire To Broke [Video] →
    • Tweet
    • Tags:
    • airbnb
    • airbnb rent
    • airbnb rentals
    • galbraith and rushby
    • Galbraith Rushby
    • Sars
    • Tax
    • tax compliance
    • taxes

    Latest News

    • Private Medical Aid Is About To Become MUCH More Expensive

      [imagesource:canva] The three biggest private medical aid providers have announced incr...

    • Checkers Takes A Funny Swipe At New Woolies Sliced Cake Offer

      [imagesource:unsplash] You've got to love our South African food retailers' sense of hu...

    • Flower Fans And Plant Parents, You’re Not Going To Want To Miss This Month’s Epic Plant Events

      [imagesource:flickr] Are you one of those people who have forsaken other people for pla...

    • Let’s Talk About Mother Nature’s Best Kept Skincare Secret – Nutrient-Dense Algae

      [imagesource:freepik] With more and more skincare brands tapping into one of Mother Nat...

    • UPDATE: What Happened To Cape Town’s Sungazer?

      Update: Thanks to everyone who showed concern for the whereabouts of The Sungazer - that's...


    • 2oceansvibe Partners

    • CONTACT US
    • GOT A HOT STORY?
    • 2oceansvibe Radio
    • 2oceansvibe Media
    • Media Pack
    • Seth Rotherham
    • Café du Cap
    • Cabine du Cap
    • Cape Town City Accommodation
    • Terms & Conditions
    • Business
    • Media
    • Entertainment
    • Tech/Sci
    • World
    • Travel
    • Lifestyle
    • Sport
    • Politics
  • Follow

    2oceansvibe.com is part of the 2oceansVibe Media Group

    DMMA Logo