Tax

Running a small business involves more than serving customers and managing day-to-day operations. Business owners must also meet their tax obligations and maintain accurate financial records. Unfortunately, many businesses make simple tax mistakes that can lead to penalties, interest, and unnecessary stress.

Tax return season often raises plenty of questions.

In this FAQ, our tax specialists answer some of the most common queries about tax returns, helping you better understand your obligations and make the filing process as straightforward as possible.

An IT3(t) return is classified as a third party data submission made to SARS via their eFiling portal. This return discloses any and all income that has been distributed to beneficiaries of the trust during the respective tax year.

With the rise of freelancing, consulting, and side hustles, many South Africans are earning additional income outside of traditional employment. While this extra income can be financially rewarding, it also comes with important tax obligations. One of the most common requirements is provisional tax.

Provisional tax is not a separate kind of tax. It’s Tax that is based off the Income you receive in which no PAYE is deducted.

If you qualify based on the below criteria, you are required to submit Provisional Tax Returns twice or three times a year. In simple terms, this is a way of paying off your Annual Income Tax liabilities in advance.

Even a business that’s been completely inactive can still face administrative penalties, and many owners only realise this once a fine lands in their inbox. Understanding why this happens, and how to avoid it, can save you a lot of stress and unnecessary costs.

Getting flagged doesn’t always mean you have done something wrong, but certain mistakes or unusual patterns in your tax return can draw their attention. Knowing what commonly triggers an audit can help you submit your tax return correctly and avoid extra stress.

If you have opted to file your own tax return, you might wonder what documents are required to get started. Each year, SARS expects specific standard documents from taxpayers. Having these on hand will make the process smoother and help ensure your return is accurate and complete.

The South African Revenue Service (SARS) has introduced a new requirement for certain entities to
submit IT3(d) returns, aiming to boost compliance and transparency within the tax-exempt sector.

This specifically applies to Section 18A approved Non-Profit Organisations (NPOs) and Non-Profit
Companies (NPCs) that issue tax-deductible donation certificates.