Taxpayers who earn additional income such as rental, trade or interest income have an important date with the taxman at the end of February.
It is the time when they have to submit their provisional tax return and make the final payment for the 2020 tax year. Taxpayers have often been warned that the late submission of returns and getting the estimated income for the tax calculation wrong can become quite expensive.
Provisional tax is a method of paying one’s income tax liability in advance. It requires the taxpayer to pay two amounts in advance (August and February), which are based on the estimated taxable income for the year.
Read: First payment for provisional taxpayers looms
The February payment is the most crucial, says Marc Sevitz, co-founder and director of TaxTim, an online tool that assists taxpayers.
He says the problem is that people do not have all the relevant information and documentation yet – such as certificates from their financial institutions for interest or dividend income, or employee tax (IRP5 certificate) to show the amount of income they have earned and the tax that has already been withheld.
[button link=”https://www.moneyweb.co.za/mymoney/moneyweb-tax/an-important-date-with-the-taxman-is-around-the-corner/”] Read More[/button]
An important date with the taxman is around the corner
20th January 2020
Taxpayers who earn additional income such as rental, trade or interest income have an important date with the taxman at the end of February.
It is the time when they have to submit their provisional tax return and make the final payment for the 2020 tax year. Taxpayers have often been warned that the late submission of returns and getting the estimated income for the tax calculation wrong can become quite expensive.
Provisional tax is a method of paying one’s income tax liability in advance. It requires the taxpayer to pay two amounts in advance (August and February), which are based on the estimated taxable income for the year.
Read: First payment for provisional taxpayers looms
The February payment is the most crucial, says Marc Sevitz, co-founder and director of TaxTim, an online tool that assists taxpayers.
He says the problem is that people do not have all the relevant information and documentation yet – such as certificates from their financial institutions for interest or dividend income, or employee tax (IRP5 certificate) to show the amount of income they have earned and the tax that has already been withheld.
[button link=”https://www.moneyweb.co.za/mymoney/moneyweb-tax/an-important-date-with-the-taxman-is-around-the-corner/”] Read More[/button]