FAQ: I am currently employed by an overseas company who requires confirmation of my South African residency how do I obtain this?
The country where a SA resident rendered services or received income normally requires a certificate of residence before considering relief of tax at source. The confirmation of tax residency can be obtained in two ways: i) A resident application form issued by a foreign country where services are rendered or income derived; or ii) A […]
FAQ: What happens to my certificates when I received a Payroll Taxes Validation Failure letter?
The certificates have been accepted and will be pre-populated on the employee’s income tax return (ITR12). In some instance the certificate may have to be revised and resubmitted. Please find more information on the Employment Tax Validation page.
FAQ: Can I distribute capital losses in a Trust as an aggregate capital loss to beneficiaries?
Capital losses may never be attributed to a beneficiary. Both para 80(1) (vesting of asset in resident beneficiary) and para 80(2) (vesting of capital gain in resident beneficiary) of the Eighth Schedule to the Income Tax Act, 1962 permit only capital gains to be attributed to a beneficiary. As regards para 80(2), if gains and […]
FAQ: I pay contributions to a medical scheme but the medical tax certificate is not in my name and I have been selected for audit. Which supporting documents must I submit?
You need to submit an affidavit stating that the main member is a dependant as defined (that is, either your spouse; a child (or spouse’s child); any family member in respect of whom you are liable for family care and support). In addition, the following documentary proof: proof of payment (which can be either a […]
FAQ: How are travel expenses for which I was reimbursed treated for PAYE purposes?
WHAT IS A TRAVEL ALLOWANCE A travel allowance is any allowance paid or advance given to an employee in respect of travelling expenses for business purposes. The following two situations are envisaged with regards to travel allowance, namely: a travel allowance given to an employee to finance transport (for example, a set rate or amount […]
FAQ: Will the taxable benefit for an employer-provided vehicle be reduced if my employer partially reimburses me for the amounts paid for licence, insurance, maintenance or private cost of fuel?
No. You must pay the full cost to be entitled to a reduction of the taxable fringe
FAQ: How can the taxable fringe benefit for employer-provided vehicles be reduced?
The taxable fringe benefit for employer-provided vehicles can be reduced by the portion of the license fees, insurance, fuel and maintenance expenses that are directly incurred by you, and that relate to actual private kilometres travelled in that year. This reduction will only take place when you submit your tax return – your employer cannot […]
FAQ: What is an employer-provided vehicle?
Some employers provide their employees with the right to use of a company-owned motor vehicle for private purposes (i.e. a company car). Private use of an employer-provided vehicle is a taxable fringe benefit.
FAQ: If I receive a reimbursement travel allowance, can I claim travel expenses on the ITR12 return (using my logbook/actual costs)?
Your employer will declare any travel reimbursements paid to you on your employees’ tax certificate (IRP5) using the relevant code. If you have a taxable travel reimbursement code on your IRP5, you may claim a business travel deduction, provided you have kept the required logbook. If you have a non-taxable travel reimbursement code on your […]
FAQ: If I worked for two Employers during the same tax year and received travel allowances, and used the same vehicle for both employments, how is the ITR12 return created? Will one or two vehicles be used in the calculation?
One vehicle will be used against two allowances. On the ITR12 where the question “How many IRP5/IT3(a)s did you receive?” appears, you must indicate two IRP5/IT3(a)’s. Two codes for 3701 will be populated on the return Under Travel allowances were the question ‘How many vehicles should be used in the calculation?’ appears, indicate one vehicle.
