📌 SARS Crackdown on Offshore Assets
SARS continues to exchange financial data with over 100 countries. If you hold offshore investments, ensure they are fully disclosed to avoid hefty fines.
💰 Tax-Smart Tips
- Use Your Medical Tax Credits
Keep receipts for medical aid, out-of-pocket expenses, and chronic medication – these can reduce your tax bill. - Maximise Retirement Contributions
Contributions to pension, provident, or retirement annuity funds are deductible up to 27.5% of taxable income (capped at R350,000 per year). - Home Office Deductions
If you work from home, part of your rent, internet, electricity, and cleaning costs may be deductible – provided you meet SARS’s strict criteria. - Provisional Tax Planning
If you earn income outside of a salary (like rental, freelance, or business income), make sure your provisional tax estimates are realistic to avoid underpayment penalties.
🌍 For South Africans Abroad
- If you spend more than 183 days outside SA (60 consecutive) and meet the physical presence test, you may qualify for the foreign employment income exemption under Section 10(i)(o)(ii).
- However, SA residents are taxed on worldwide income unless formally ceased residency. Get professional advice before assuming you’re exempt from Worldwide Tax Solutions
📊 Did You Know?
- Small business owners can qualify for Turnover Tax, a simplified tax system if your annual turnover is under R1 million.
- Donations up to R100,000 per year per individual are exempt from Donations Tax.
📌 Action Step for This Month
Check your IRP5 and third-party data on SARS eFiling – SARS already has much of your information. Ensure it matches your own records to prevent disputes.
