Money Matters
Your tax does matter to us at SARS!
Fareed Khan, the South African Revenue Service (SARS) Regional Director for Gauteng South explains why paying tax matters. “In the first of our regular tax columns, which we launched at the end of last year, we mentioned that we would be focusing on provisional tax in the next column. For those who are not sure what provisional tax is or who should pay it, let’s start off with a brief explanation”:
What is provisional tax?
Provisional tax is not separate from income tax but is simply a means of paying your income tax liability during the year of assessment, instead of owing a large tax liability when you submit your income tax return during Filing Season. Provisional tax is therefore an advance payment of a taxpayer’s normal tax liability.
Who should pay provisional tax?
Provisional taxpayers are those who receive income other than remuneration. If you receive income such as rental income from a property, interest income from investments or other income from a trade, you will be a provisional taxpayer. However, exceptions can apply (see website link for list of exceptions). Generally, the rule is if you only receive remuneration, then you are regarded as a non-provisional taxpayer. However, a person who receives remuneration can be liable for provisional tax if the remuneration is received from an employer who is not registered as an employer with SARS (for example, South Africans working for foreign embassies in South Africa).
Quick reminder
An IRP6 return can be requested and submitted via the following channels:
• SARS eFiling at www.sarsefiling.co.za • A SARS branch • The SARS Contact Centre on 0800 00 7277 For more on Provisional Tax, go to www.sars.gov.za > Types of Tax > Provisional Tax.
When and how should it be paid?
A provisional taxpayer is required to make two provisional tax payments: at the end of the first six months into the year of assessment (August) and on the last working day of the year of assessment (this year it would be 26 February). This is for taxpayers with the year of assessment ending February.
Taxpayers may make an additional provisional payment, generally known as the third or top-up payment, after the end of the year of assessment in order to reduce a liability for interest that would arise should their first two provisional payments be inadequate. For taxpayers with the year of assessment ending February, the additional provisional tax payment must be made on or before 30 September.
Please note:
Provisional taxpayers must also submit an income tax return during the annual Filing Season.
Provisional tax liability is calculated on estimated taxable income, including current taxable capital gains, for that particular year of assessment. These estimates of taxable income are submitted to SARS on an IRP6 return. The normal tax payable on the estimated taxable income is calculated at the relevant rate of tax for that respective year of assessment.
Provisional tax returns are mandatory if you meet the definition of a provisional taxpayer. A provisional taxpayer must submit an IRP6 return, even if the end result reflects no provisional tax payable.
Latest SARS news
Scams
On another topic altogether, our region is aware of a number of scams targeting taxpayers. Please be very careful when asked to make payments or give away personal information to anyone claiming to be from SARS. For more info on these scams, go to www.sars.gov.za > Targeting Tax Crime > Scams and Phishing.
Problems with loading SARS forms due to Adobe Flash Player
SARS apologises for the disruption in services brought about by the worldwide termination of support of the Adobe Flash platform on 12 January 2021. If you are currently experiencing these issues, please go to the SARS website (www.sars.gov.za) and click on the red section at the top of the home page for more info. SARS is working on resolving these issues as soon as possible.
SARS services during February
South Africa has entered the second wave of the Covid-19 pandemic and SARS is taking every step possible to protect taxpayers and its employees. SARS branches are currently closed for physical visits, but taxpayers can continue to make use of our digital offerings, including calling our Contact Centre on 0800 00 7277 or having virtual engagements with our agents.
You can make an appointment online at www.sars.gov.za (https://www.sars.gov.za/Contact/Pages/Make-an-Appointment.aspx).
You have the following options:
• A telephonic appointment where a SARS official will call you at an agreed time
• A video appointment where a video conference will be set up with a SARS official at an agreed time
Please keep checking our various media channels for updates on SARS branch closures.
Your safety and the safety of our staff are our key priorities.
Moenie ‘n slagoffer word nie
Die nuutste slenter, vishing (voice phishing) verwys na ‘n strategie waar booswigte jou per foon sover kry om jou persoonlike inligting en rekeningbesonderhede vir hulle te gee. ‘n Constantia Kloof-inwoner, wat anoniem wil bly, het vertel dat hulle gesin die afgelope maand reeds twee gevalle hiervan teëgekom het. “Elke keer het mense gebel en gesê dat iemand ‘n groot bedrag geld uit ons rekeninge probeer onttrek. In albei gevalle, was die bank nie hiervan bewus nie,” het hy gesê. Virseker en SABRIC gee die volgende wenke:
- Beskou elke oproep wat jy van mense kry wat beweer dat hulle ‘n betroubare instansie verteenwoordig as ‘n moontlike bedreiging. Vermy mense wat jou vir jou wagwoord, PIN, kredietkaart- of ander besonderhede vra.
- Gaan die ooreenkomste wat jy met jou bank en ander instansies het deeglik na. Maak ook seker dat jy presies weet watter inligting hierdie instansies jou sal vra om jou identiteit te bevestig.
- Moet nooit persoonlike en vertroulike inligting met enige iemand deel nie. As jy onraad vermoed tydens ‘n oproep, beëindig dit dadelik en bevestig eers met die instansie.
- As jy ‘n eenmalige PIN op jou foon ontvang sonder dat jy besig is met ‘n transaksie, het ‘n skurk waarskynlik jou persoonlike inligting. Moenie hierdie PIN telefonies met enige iemand deel nie.
- Maak seker dat al jou teenvirus- en sekuriteitsprogramme op datum is en werk.
- Moenie op enige skakel kliek wat via SMS, epos of ander platform aan jou gestuur is deur ‘n ongeverifieerde kontak nie.
- Moet nooit beheer van jou selfoon of rekenaar aan ‘n derdeparty oorgee nie. Indien jy tydens ‘n verdagte oproep skielik sein verloor en/ of ‘n “SIM swap”-kennisgewings kry, beëindig die oproep en stel die owerhede onmiddellik in kennis.
- Verander jou PIN en wagwoorde gereeld.
- Hou alle noodnommers vir jou bank en ander FDV’s byderhand. Indien jy vermoed dat jy deur vishing- of phishing-booswigte geteiken word, of geteiken is, stel hulle, en/ of jou selfoondiensverskaffer dadelik daarvan in kennis.
Prepare for a tough academic year – materially and emotionally
- “If there’s one thing 2020 taught us, it’s to be wary of planning too far ahead,” said Philippa Brinkmann, head of learning support at Rustenburg Girls Junior School in Cape Town. It’s a worrying wrinkle in what should be a time of excitement and anticipation, as children prepare for the 2021 academic year – now starting in February, due to Covid-19-linked postponements.
“Buy only what’s absolutely essential for getting through the first term of 2021. Don’t invest in sports clothing and equipment at the moment – schools may not be allowed to offer their usual extramural activities, and kids may grow out of their sports clothing before they even get a chance to use it. When buying school uniforms, only buy for the summer season, as there’s too much uncertainty around whether a third wave of Covid-19 infections will occur during winter, in which case schools may close.”
A device and access to data are also essential. Hayley Friend, a teacher at Camps Bay Primary in Cape Town, agrees that a basic level of reliable, user-friendly technology is needed to keep up with distance learning. “Fast Wi-fi at home is ideal, and perhaps a tablet or smartphone of their own. Access to a printer comes in handy, as tangible notes are more engaging and therefore more memorable,” she said.
Access to affordable data is a South African problem – even in affluent areas – and parents/ caregivers are encouraged to reach out to their schools for help, as teaching staff can’t know the difficulties families face if they aren’t told about them, and schools may have contingency plans to help in situations like these.
The Tomorrow Trust, a Joburg-based non-profit organisation part-funded by the Datatec Education and Technology Foundation, which supports orphaned and vulnerable children throughout their educational journey, supplies smartphones and data (where relevant) to a thousand children between the ages of five and 18 in Gauteng and Western Cape townships. The Trust sets up WhatsApp groups moderated by teachers for their learners to get extracurricular support, as well as for their senior learners to participate in online webinars focused on career development, but also to nurture socioemotional skills.
“An area often neglected is the right emotional support kids should be getting during these extraordinary times,” said Reabetsoe Buys, who heads up the youth development programme at the Tomorrow Trust. To this end, Buys advised that parents/ caregivers should ensure the children’s day is structured with a set routine, allowing a set time dedicated to learning; engaging in fun activities as well, such as experiments, art and hands-on activities, to ensure the engagement of the creative as well as the logical brain; and recapping at the end of the day, which is helpful for parents to check in with their children and see if they’re on track, and also to encourage them to ask questions.
Mini whiteboards with markers also help, as kids can write up tasks, make mistakes, wipe them off, and start again. Regular breaks are vital, with a recommended 20–30 minutes study period followed by a 10-minute break. A mini-trampoline in the yard, a skipping rope or a punching bag can get kids up and moving, which can also aid in them learning while moving and having fun.
