A:  Our fees are calculated on the basis of time spent on your affairs by partners and personnel, taking into account the complexity of matters at hand and the level of expertise required.

A:  Anyone can start up a business. Registration at the city council is not necessary, except in certain circumstances. One can trade as a sole proprietor, or form a trading entity i.e. private company.

A:  Only if your business turnover exceeds R1 000 000 per annum, registration is compulsory. One may register on a voluntary basis if turnover is less than  R1 000 000.

A:  Apart from income tax, and depending on your business, one should register for:
–  UIF       (Unemployment insurance fund)
–  PAYE    (Employees tax)
–  WCA     (Workmen’s compensation)
–  SDL      (Skills development levy)

A:  Anyone who is in business to lose money should rather do nothing and sit at home. To pay tax, means that you made money. To grow your business, one needs money. Rather make it your goal to be profitable from day one.

A:  Capital Gains Tax is not a separate tax system. It is merely a way to tax profits on gains not of an income nature. It is calculated using a base cost, which is subtracted from the proceeds. Certain exemptions apply, and one may choose from a few methods to calculate the gain to be included in the year’s taxable income.

A:  It is a good idea to draw up a will as soon as you have assets and liabilities.

A:  All employees working more than 24 hours per month should contribute to the Fund.

A:  All monies received from the employer, whether in cash or in kind, except for commission are regarded as earnings and contributions must be paid on them. All allowances that are received are regarded as earnings and are liable for contributions. Examples of allowances are travelling allowances, entertainment allowances as well as food and accommodation allowances.

A:  Yes, up to the limit of total monthly earnings of R12 478.00 which means that a person earning more than R12 478.00 per month will only contribute R124.78 (1% on the total earnings of R12 478.00).

A:  Yes, the salaries of directors and members should be included on the W.As08 form.

A:  The workmen’s compensation commissioner uses a formula based on estimated salary and wages figures for the next year. This should also include directors / members salaries.

A:  If my earnings exceed R120 000 per annum and / or I have my own business and / or I earn rental income or interest in excess of R10 000 per annum.

A:  The following persons / natural persons are not required to pay provisional tax:

• Any person whose income is derived solely from remuneration.
• Any person who does not carry on a business and whose income does not exceed the tax threshold, which is R59 750 for persons under 65 and R93 150 for persons over 65 and R104261 for persons over 75.
• The taxable income of any person which is derived from interests, dividends, and rental from the letting of fixed property will not exceed R20 000.
• The investment income exemption amounts for 2012 are R22 800 for persons under 65 or R33 000 for persons over 65. Foreign interest and dividends are only exempt up to R3 700 out of the total exemption.
• Any person 65 years or older is exempt from the payment of provisional tax if:

1. the taxable income for the tax year does not exceed R120 000 and consists of remuneration, pension, interest, dividends or rental income from the letting of fixed property; and
2. he /she do not carry on any business.

A person who only receives remuneration, and/or interest and rental income less than R10 000 per annum.

A person over the age of 65 who does not carry on a business and whose income from remuneration, interest and rental income does not exceed R80 000 will also be exempt to register for provisional tax.

A director of a private company and a member of a close corporation will also be exempt to register for provisional tax if they comply with the abovementioned criteria.