What is a Provisional Taxpayer? | Tax 101

What is a provisional taxpayer? In this video I explain the difference between a provisional and non-provisional taxpayer.
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Important Links:
sars.mylexisnex... - Tax Legislation
www.sars.gov.z... - SARS website
secure.sarsefi... - eFiling Login

[@PeterSserwangaShow]

Boom!

[@omphemetsechake2839]

Thanks Andre for the video....

[@AndreBothmaTax]

My pleasure!

[@hesterdeyzel8934]

Thank you

[@immanuelshima6987]

This tax stuff is confusing Im a blogger and the cheque is getting bigger and bigger

[@AlbertCloete]

Your videos are very helpful, as always. I really appreciate it. So I pay PAYE every month on my salary. But I've now recently started trading/investing in offshore stocks, ETFs and crypto. All on the eToro platform. My assumption was that I could just pay the tax on the profit that I make there at the end of each tax year. Is that wrong? Do I need to do it twice a year? Also, do you know when the profit is actually realised and counted as profit? Is it when I sell the stocks, etc. on the platform, or when I withdraw it back to my South African bank account? Can I deduct bank costs related to the trading from my taxable income? Would there be any advantages to register a company to trade through, rather than using my own personal account?

[@AndreBothmaTax]

Hi Albert, this is a very loaded comment with many questions, but in short: 1. Technically yes, calculate all the stocks you sold (proceeds) and their respective base cost at time of purchase to work out the profits which you would declare. 2. When you sell the stocks, that is when you accrued the income. It doesn't matter whether you've withdrawn it yet or not 3 I would say that you're able to deduct bank charges from active share trading. 4. A company is expensive to set up, and when you're the only director, you effectively pay 42.4% in taxes (28% on the company profits + 20% to take any dividends out). As an individual (that does share trading), you can still minimise your exposure to tax (for the trading income), and your tax is on a sliding scale (18 - 45) rather than the flat 28% + 20% DWT. Outside of the taxes, the biggest benefit a company has is for B2B transactions/contracts and separate legal liability.

[@strandloper]

Glad to have discovered your channel. I have been unemployed since retrenchment in July 2020 and amongst other opportunities I'm looking into there are ways for me to earn foreign income (I'm a software developer) but not having done anything other than be a normal employee this is all new to me. You mention that SARS will automatically register me as a provisional tax-payer, but when does this happen? Is it completion of my first regular tax return after beginning freelancing that triggers it? If so do I simply not pay provisional tax (putting aside money instead) in the first period until my next tax return?

[@zain5361]

Steve, I'm In the same sinking boat man. We must have a chat some time if you are available.

[@strandloper]

@@zain5361 I found an awesome local opportunity. Contract at the moment but hoping it might become a full time position.

[@ndumisoduma1240]

@@strandloper Did you eventually figure this out. I'm in the same boat now, earning a foreign income and I have the same questions you have

[@strandloper]

@@ndumisoduma1240 Sorry, can't help. I was fortunate to get a contract position with a local company, that morphed into a permanent position.

[@rahlakramer7971]

How do I add being a provisional tax payer (already a regular tax payer but have alternative income from consultancy work) - can find it for the old website but not on the new! Thanks.

[@nhlanhlantombela336]

THANK YOU FOR THE LIGHT ANDRE. HOW DO I CHECK MY E-FILING FOR MY BUSINESS THAT I REGISTERED THROUGH CIPC, FOR I JUST RECEIVED TAX CERT. BUT I DONT KNOW HOW TO CHECK MY PROFILE ONLINE

[@NAJ484]

Hello, kindly confirm where I can get a tutorial for the Assets and liabilities section for the ITR12 for individuals

[@AndreBothmaTax]

I've added it to my list of videos to create

[@maplez470]

Hi I just want to ask this I got a job and I get paid per hour worked no tax is deducted I have to be responsible for my own tax. My question is should I register for provisional tax, should I register a company cause I also can't get financing from any bank cause I don't have a payslip

[@AndreBothmaTax]

Do you have an employment contract with the company you work for?

[@maplez470]

@@AndreBothmaTax no I don't have any employment contract. I hv no contract we just hav an agreement that I work and gt paid per hour

[@joellebebb3874]

Does every providional payer have to make biannual payment?

[@AndreBothmaTax]

Every prov taxpayer has to SUBMIT bi-annually, but the payment is dependent on the estimate.

[@melissakinja6226]

How can I contact you. Need your services