Provident Fund deductions

Don’t you think it’s great that we now have Provident Funds as a deductible expense in our tax returns? Just a heads-up though, for those of you who haven’t yet filed your tax returns.  The employee portion as indicated on the IRP5 under code 4003 is the full amount paid – it is the total of both the employers portion and the employees portion.  This is the amount you use when working out your tax payable.  Do NOT add codes 4003 and 4473 together.  And…

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Is the Medical Deduction getting you down?

Do you feel you pay through your nose for medical bills and can’t see a light at the end of the medical tunnel?  There is good news for you. Our tax system has kindly allowed us to claim an additional Medical Tax Credit in our returns if we have had a rotten year and ended up having to fork out a fortune for medical bills over and above our medical aid contributions.  In addition, SARS have allowed for a Medical Disability or Impairment to further…

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Tax proposals on foreign income

There’s been a whole lot of hype about how foreign income will be taxed in this country in 2019. Some people are even choosing to come back home to work now, because there is no financial benefit to being away from their families for so long any more. What has been proposed is that the taxable income needs to be declared here in South Africa, and the tax calculated accordingly, with any taxes already paid in the foreign country being allowed as a deduction, with…

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