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Let me first ease your blood pressure by saying that January 31 is the deadline for provisional taxpayers, including trusts and companies.
If you earn a salary that is taxed each month and you have no other source of income, you’re most likely not a provisional taxpayer and would have submitted your tax return in the period between July 1 and December 2, 2021.
At least I hope you did.
For more on what makes a provisional taxpayer here’s The Southern Courier:
Provisional taxpayers pay normal tax in advance for a particular year of assessment, based on their estimated taxable income for that year of assessment. It is applicable to companies, trusts and individuals who receive income not constituting remuneration (such as taxable interest, rental income or business income.)
It is meant to assist taxpayers to meet their tax liabilities on an ongoing basis, as opposed to paying a large amount once when the annual return is assessed.
Nobody wants to be hit with a moerse tax bill.
You can find all the ins and outs of what defines a provisional taxpayer on the SARS website.
Of course, enlisting the help of tax professionals takes away a few headaches and ensures you’re maximising your tax return via expenses incurred and other avenues.
Naturally, if you get it wrong there are ramifications:
Provisional taxpayers who fail to submit the final provisional tax return within four months after the last day of the year of assessment will be deemed to have submitted an estimate amount of nil taxable income.
Underestimation or underpayment of taxable income on a Provisional Tax Return may lead to penalties and interest.
Ain’t nobody got time for that.
Spare a thought for those businesses trying to figure out what they owe:
In 2021, SARS introduced a Covid-19 Tax Relief for Provisional Tax, aimed at compliant small to medium-sized businesses and micro-businesses.
Qualifying provisional taxpayers may pay 15% instead of one half of an amount equal to the total estimated liability (as determined in accordance with paragraph 17 of the Fourth Schedule) for normal tax, provided that the requirements of the tax relief are met.
Say what now?
I really do have unlimited sympathy for smaller businesses that have somehow navigated the past two or so years in the most trying of circumstances.
Good luck if you’re going at it alone, and remember that firms like Galbraith | Rushby are always available to assist should the task become too daunting.
[source:southerncourier]
