TAX In South Africa
What Is Tax
Taxation may involve payments to a minimum of two different levels of government: centeral goverment through SARS or tolocal goverment.Prior to 2001 the South African tax system was "source-based", where in income is taxed in the country where it originates. Since January 2001, the tax system was changed to "residence-based" wherein taxpayers residing in South Africa are taxed on their income irrespective of its source. Non residents are only subject to domestic taxes.
Our Services Include:
- Handles all administrative duties with SARS including general correspondence
- Preparation of all types of income tax returns
- Advice on tax related matters
- Disputed tax matters including lodging objections at SARS
- Assistance and management of SARS audits
- Consulting on:
- - Income Tax matters
- Value Added Tax
- Company Tax
- Security Transfer Tax
- Estate duty
- Employees tax and fringe benefits
Why Do We Pay Taxes? Taxes are the primary source of revenue for most governments. Among other things, this money is spent to improve and maintain public infrastructure, including the roads we travel on, and fund public services, such as schools, emergency services, and welfare programs.
What is an Administrative Penalty?
An Administrative Penalty (Admin Penalty) is a penalty levied under Section 210 of the Tax Administration Act (TAA). The Act prescribes the various types of non-compliance which are subject to fixed administrative penalties.
Currently the penalty is imposed only for non-submissions of tax returns in respect of individuals and companies:
- For individuals the penalty will be imposed where the taxpayer has failed to submit a return as and when required under the Income Tax Act for years of assessment commencing on or after 1 March 2006 where that person has two or more outstanding income tax returns for such years of assessment; and
- For companies the penalty will be imposed where the company has failed to submit an income tax return as and when required under the Income Tax Act for years of assessment ending during the 2009 and subsequent calendar years, where SARS has issued that company with a final demand referring to the public notice and requiring the submission of the outstanding income tax return, and the company failed to submit the return within 21 business days of the date of issue of the final demand.
Taxpayers who do not submit their tax returns will be charged an admin penalty which must be paid over to SARS.
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