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