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.
@ilzebezuidenhout98103 ай бұрын
dont you end up paying more, because your paying 28% business tax + 45% personal income tax?
@JJTAcc3 ай бұрын
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
@ilzebezuidenhout98103 ай бұрын
@@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%
@JJTAcc3 ай бұрын
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%.
@mohammadshabih52933 ай бұрын
is petrol valid deduction? I have a tutor buisness at a university and I buy petrol to get there. Surely that's not personal expenses.
@JJTAcc3 ай бұрын
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.
@sydneymathuka42284 ай бұрын
I am working
@JABULANINgomane-ed5vp5 ай бұрын
next time stop playing music when teaching please its disturbing our attention.
@JJTAccАй бұрын
Noted
@ActiveProAmerican7 ай бұрын
Thanks man
@JJTAcc3 ай бұрын
You're welcome!
@albevanniekerk82957 ай бұрын
Informative but background music too loud and disturbing
@JJTAccАй бұрын
Duly noted
@lynitakin274210 ай бұрын
Thank you for this valued information Jacques, but really, the background music must be removed or the volume turned down if you want to keep the music. I feel that your information is so important that we can do without the interference of the music. Keep up the good work. Good teacher!
@Melharts11 ай бұрын
Does this apply to contract workers? Or are they taxed differently
@JJTAcc11 ай бұрын
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.
@Melharts11 ай бұрын
@@JJTAcc Thank you so do much for your prompt reply. Your videos and time given is very appreciated
@JJTAcc11 ай бұрын
@@Melharts you are most welcome.
@legrangedylandlg Жыл бұрын
More reason not to have kids😂, I also account for loss of opportunity let’s say due to inflation over the past 4 years it’s closer to 2 million to raise a kid with varsity fees etc. That money can purchase an extra house or can be double through investments
@JJTAcc11 ай бұрын
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.
@shav2012 Жыл бұрын
🙏 thanks
@JJTAcc11 ай бұрын
You’re welcome 😊
@bonjovi7120 Жыл бұрын
Making a video while driving in your car with ear phones on? Are you brain damaged?
@monetwagner3805 Жыл бұрын
I want to start off by saying it is a nice video. The only comment I have as a Financial Advisor is that your tax refund is considered voluntary money. So it would be ill advised to pay your tax refund into a retirement annuity, which is considered compulsory money, meaning you will be giving up the flexibility you have with your tax refund. Rather invest in a tax-free investment, as mentioned in your video, so that you do not pay tax on that money again. Enjoyed the video, thanx.
@JJTAcc Жыл бұрын
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.
@jasperbasson Жыл бұрын
😂😂
@wynandvictoryfitwell5751 Жыл бұрын
😂
@heinrichgrove Жыл бұрын
Skerp!!!
@heinrichgrove Жыл бұрын
Awesome!
@CoachJurieW Жыл бұрын
Hahaha - e-Filing crash!
@CoachJurieW Жыл бұрын
Hahaha - it happens from time to time - great intro
@JJTAcc Жыл бұрын
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. 😂😭
@jasperbasson Жыл бұрын
🔥🏆
@JJTAcc Жыл бұрын
Dankie Jasper
@wynandvictoryfitwell5751 Жыл бұрын
👍👍👍
@jasperbasson Жыл бұрын
Interesting!
@heinrichgrove Жыл бұрын
Great topic!!!
@4x4ViewFinder Жыл бұрын
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.
@arvindbega4762 Жыл бұрын
*Promo sm*
@aryanasmith4426 Жыл бұрын
Your videos are very useful and provide lots of information. I have received lots of help after watching this post, please continue to share this kind of information. Thank you.
@JJTAcc11 ай бұрын
You are most welcome.
@Shack01 Жыл бұрын
@Pretera Accounting Services thanks for the advice, just registered mine couple weeks ago and need some advice how can I reach you?
@JJTAcc Жыл бұрын
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?
@Shack01 Жыл бұрын
@@JJTAcc will do that thank you, hoping you had a good time off ☺️!
@mrniceguy5731 Жыл бұрын
can you contact me please
@karenbayley-mentor-busines6511 Жыл бұрын
Hello. I am a business consultant and have a Pty Ltd. Is it better to pay myself reimbursive travel per kilometer travelled or to pay myself a travel allowance from a tax perspective please?
@JJTAcc Жыл бұрын
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.
@timo57890 Жыл бұрын
Very helpful videos thanks
@JJTAcc Жыл бұрын
Glad to hear that. Thanks for watching.
@LlewYellowAnt Жыл бұрын
Back ground music is quite bad, rather go without it
@JJTAcc Жыл бұрын
Sorry about that. I'm looking at a redesign of the videos and will take this into consideration.
@leratomalatji9561 Жыл бұрын
Hi I don't have accounting background, I just understand the basics, I'm good at Maths and would like to learn bookkeeping, taxes and payrol. My husband got a school tender to run a kitchen, he's a chef and want me to run the financials, can you help me
@JJTAcc Жыл бұрын
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!
@fafa4262 Жыл бұрын
Why do you have the background music? Very distracting :(. Your clips are amazing though
@JJTAcc Жыл бұрын
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!
@gelolekwadi44112 жыл бұрын
hi i need advice. i have a bcom accounting degree and i want to be a tax practitioner how do i go about it? from SA
@JJTAcc Жыл бұрын
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.
@mofokengmphowalter86472 жыл бұрын
Thnx for in. The background music is a bit too high. Friendly!!!
@JJTAcc Жыл бұрын
Noted
@tthesepeople2 жыл бұрын
hi, so in regards to the paye monthly submissions. If i miss payments for a couple of months (e.g 1 year), does sars investigate monthly or do they wait for the annual return period?
@JJTAcc Жыл бұрын
That depends on the specific investigator. Usually they would investigate monthly and levy the penalties and interest monthly.
@lebohangapril25942 жыл бұрын
"Executive Coffee Drinker" 🤣🤣🤣🤣, I love your videos they are very informative 👍🏾
@JJTAcc Жыл бұрын
Glad you like them! And thanks for watching!
@youtubeusername19652 жыл бұрын
that was mind blowing tbh,but can you please touch paying Tax on Stocks & International Etfs🙏🏽
@finnegan91972 жыл бұрын
💖 𝐩𝓻Ỗ𝓂Ø𝓈M
@salmahugo62862 жыл бұрын
Refund tax payment expire date 2022
@salmahugo62862 жыл бұрын
Sarc owe me refund
@yasinnabi2 жыл бұрын
watching wonderful videos and contents in this channel ... thanks for the share. Subbed ! a fellow creator~~
@JJTAcc Жыл бұрын
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.
@haydxn67652 жыл бұрын
I love this, very informative.
@MrsDyarvane2 жыл бұрын
Hey Jacques , nice video, does renting property through your business also help with taxes ?
@JJTAcc2 жыл бұрын
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.
@nkhensanibambo9992 жыл бұрын
Thank you for breaking it down in a simpler way
@stefanbachrodt70722 жыл бұрын
GREAT tip about crediting the credit card to ensure you receive a better credit score rating! Going to try this next
@JJTAcc2 жыл бұрын
Glad it was helpful!
@stefanbachrodt70722 жыл бұрын
Thanks for putting this into layman's terms.. I've always been heavily against purchasing anything credit because of the principle surrounding being indebted to someone or something, not to mention that the whole financial / monetary system really irks me however I'm now in my 30s and have realized the importance of having a good credit score so recently I've started building up my score through mobile contracts and merchant store accounts and am now looking to purchase a new vehicle through finance but I'm hesitant because I can't afford to have yet another credit check done for the year. Could you possible tell me what kind of interest they'd charge a 32 year old male who's only been building credit for the past 6 months but has a credit score of 632? Would it be over 11%?
@JJTAcc2 жыл бұрын
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?
@nomfundisogumede29292 жыл бұрын
Very informative 👍
@Seemo.6662 жыл бұрын
I heard that I'm not supposed to be taxed when I'm on a fixed term contract (6 months) so I'm owed the monthly taxes that I paid during that period...true?
@JJTAcc2 жыл бұрын
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.
@Seemo.6662 жыл бұрын
@@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?