Thank you.

Because LLC does not exist in South Africa. Most people know of LLC's because of Rich Dad Poor Dad from Robert Kiyosaki. He's an American. His advice is predominantly for Americans, though a lot can be carried over to other countries. In South Africa we have: Public Companies (Ltd) Private Companies (PTY Ltd) Close Corporations (CC) (cannot create new ones, only those who are in existence continue) Personal Liability Companies (Inc) Non-Profit Companies (NPC) Special Purpose entities - which are usually a PTY with limited scope in the MOI. Partnerships Sole Proprietors Joint Ventures Trusts This video's intention was to inform the public of the most common and widely applicable option for most businesses. Unless I forget one, that's about it.

This is an excellent question. The answer is: No, you don't pay double tax on salaries. How it works is that the "salary" paid to the director is not taxed at the corporate tax rate which is now 27% (it changed from 1 April 2022). This is considered an allowable deduction from the company. Therefore it is either the 27% corporate tax rate, or the applicable tax rate on the sliding scales. However, if you are declaring a DIVIDEND, then yes there will be double tax. Dividends are paid out of profit after tax (so you already paid the 27% tax), and then there is the dividends tax applicable on the amount. This means you effectively pay 47% on the amount received. If you're unsure, please look into my video "How to calculate income tax - South Africa 2018" to see how an individual's tax is calculated through the use of the sliding scales. The actual sliding scale figures has changed, but the principle remains the same. -Jacques

@@JJTAcc that makes a lot of sense, thank you very much for the clear explanation. So in essence, if you're earning above R2m a year as a salary, there is now way to escape paying 45/47% to tax, because both the salary and the dividend amount to that percentage. That is so crazy to me because America's highest tax percentage is 37%

This is where things like Retirement Annuities, endowments and the like comes in. Also, the effective tax rate on a R2million income is closer to 35% than the tax bracket 46%.

That depends on a number of factors. Usually, SARS considers travelling between your home and work is considered a personal expense which is prohibited in terms of S23(g). So if this is your only source of income, you would be seen as an employee of the university and the petrol will not be allowed. If you have multiple such client sites where you need to be, then it would be considered allowable.

Noted

You're welcome!

Duly noted

Yes. Contract workers are taxed annually on the same basis. However, many contract workers earn below the tax threshold, therefore the primary rebates will erase any taxes payable by them in that year. Just be aware that in some instances contract workers can be seen as self-employed (like freelancers, etc.) and they are then likely to be considered provisional taxpayers.

@@JJTAcc Thank you so do much for your prompt reply. Your videos and time given is very appreciated

@@Melharts you are most welcome.

This is true. But to each their own. For some people children are more important than money. For others, money is more important than children.

You’re welcome 😊

Hi Monet Thanks for your comment! However, I (Jacques) would not consider a Tax Free Savings Account (there are very few tax-free investments that are NOT TFSA's) as voluntary money, for the simple reason that there are clear limits as to how much you can invest into an TFSA over your lifetime. This means that if you invest in a TFSA, and you withdraw the money later, it in actual fact reduces your ability to invest in the same kind of investment in the future and ultimately diminishing the potential return and usefulness of this kind of investment. That, and most of our clients are already advised to contribute to TFSA's. Additionally, SARS levy quite significant penalties if you contribute more than allowed to TFSA's. Additionally, in our example of investing a tax refund into an RA, it actually means that you are not paying tax on the refund, and SARS will allow you additional tax deductions on the RA investment you made. But it was just an example of what you could do.

Thanks. Yesterday we tested new mics. Everything seemed good on the first 2 test videos, and then recorded a 10 minute video on VAT. When I looked at that video, the mics distorted terribly so now I have to make a plan and redo the whole thing! Such is the life of a content creator, I guess. 😂😭

Dankie Jasper

True, great info and a great initiative using technology to simplify qoutes for Auditing. I used to be a trustee on my complex HOA and remember it used to be a big issue getting quotes for our audits. Great work.

You are most welcome.

Hey Shack01. Sorry, I took a bit of leave some time ago. Please hit us up through jjtacc.co.za/quote-request/ or jjtacc.co.za/contact/ Yes, JJT. As per my latest video, Pretera has merged with JJT. Please refer to this channel message when making contact so we know it's you?

@@JJTAcc will do that thank you, hoping you had a good time off ☺️!

Hi Karen. My apologies, I noticed I haven't responded to your query yet. It would really depend on your vehicle and travel, but it seems to us that the most tax efficient way to treat travel activities is with a travel allowance and a logbook, and not reimburse expenses.

Glad to hear that. Thanks for watching.

Sorry about that. I'm looking at a redesign of the videos and will take this into consideration.

Hi Lerato I can most certainly help. Please send me an email to [email protected] or [email protected] and I'll be in touch. Thanks for watching!

Hi Fatima Usually the idea is that when the recording is done indoors and there's no or very little background sounds, some background music is advised as it adds a little something. The keyword is "background"... I just haven't found the right balance or music yet. Thanks for watching!

You will need to gain some experience in the field. Usually you work for a tax practitioner for a couple of years. Then you need to register with a Recognised Controlling body. The main ones are SAIT, CIBA, SAIPA, SAICA and ICB. Only SAIT does only tax, the others does some form of bookkeeping/accounting as well, which as a tax practitioner let's you offer additional services to companies and be more profitable.

Noted

That depends on the specific investigator. Usually they would investigate monthly and levy the penalties and interest monthly.

Glad you like them! And thanks for watching!

Thanks and welcome. I see you're from South Korea. Please understand this information is mostly applicable to a South African audience, since I'm not knowledgeable on other tax regions.

Hey Winnie It depends on the property being rented, and the purpose for the rental. If it's a business premises, it's easier to get the deduction from SARS. But if it's residential, say for one of the directors, it makes more admin (meaning more costs) for only a slight deduction in the taxes payable, if at all. My advice is to put business expenses through the business, and keep private expenses separate.

Glad it was helpful!

Hey Stefan Thanks for watching. Honestly, I can't tell you what interest rate it would be. Honestly, I'm not sure. The average rate for vehicle finance at the moment is around 13% I believe, but don't quote me on that. I use ClearScore for my personal credit score tracking, so, maybe have a look there?

Hi there I'm not sure who told you that, or why they would do so. You are taxed on your annual income. So for a 6-month contract, the employer would have to assume you will get another 6-month contract with the same pay scale when calculating your PAYE to be deducted. In some cases, you might get a tax refund, but not always.

@@JJTAcc Thanks for your response. He told me because he got his refund when he was on the same contract. Maybe I should check with SARS and see if I'm owed anything, right? Do I just call them for that or there's an online process?, and will I need any documents whatsoever?