SARS recently announced the relevant dates in respect of the 2020 filing season for individuals and provisional taxpayers can start submitting their returns from 1 September 2020.
If you earn any non-salary income, for example rental income from a property, interest income from investments or other income from a trade or small business you run, you will be a provisional taxpayer, even if you also earn a salary.
This webinar provides an update of the basic mechanics of provisional tax for individuals, as well as a comprehensive discussion on some of the more complex areas that need to be considered and applied, including specific discussions on the current Covid-19 provisional tax relief measures and the requirements for home office expenses to be deducted as per the current work-from-home regime.
We cover the the following in detail:
1) What is provisional tax? – understanding the purpose of provisional tax.
2) Who is a provisional taxpayer? – know who should register as a provisional taxpayer.
3) How is provisional tax calculated? – working through the basic framework for calculating the provisional tax, dealing specific with:
i. Basic amount
ii. Estimates of taxable income
iii. Requirements for home office expenses to be deducted in relation to the current Covid-19 work-from-home regime
iv. Foreign tax rebates
v. Medical scheme fees tax credit
vi. Additional medical expenses tax credit
vii. Par 21: Provisional tax payments for natural persons
4) When must provisional tax be paid? – know when provisional tax is payable.
5) What are the deferral of payment criteria and agreement terms? – know when an instalment payment agreement can be entered into.
6) What penalties and interest are applicable per period? – discussing the late payment, late submission and underpayment penalties as well as the applicable interest sections.
7) What are the current Covid-19 provisional tax relief measures? – available to qualifying tax compliant taxpayers.
8) How do I complete the IRP6 on SARS e-filing? – a systematically approach to the completion will be followed.
Practical examples are incorporated throughout the session, explaining all the key principles.
This webinar will contribute 2 CPD hours