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BGR Chartered Accountants (BGR) is an association of six Western Cape firms that combine their resources and skills to serve their clients with expertise of the highest quality at a competitive tariff structure.
YOUR TAX DEADLINES FOR FEBRUARY: HOW TO AVOID PENALTIES
The second provisional tax payment for the 2018 tax year is due by or on 28 February. Provisional taxpayers are required to estimate the total taxable income (including any capital gains) for the tax year, and to make the second provisional payment to SARS. Don’t get this wrong! The penalties for inaccurate estimates are severe, and applying for them to be remitted will embroil you in a dispute process which is likely to be both lengthy and cumbersome.
Here’s how accurate you have to be with your estimates:
Percentage based penalties of twenty percent will apply where your estimate is not accurate enough…
- If your taxable income is less than R1 million, you will have penalties levied if your estimate of taxable income is less than the “basic amount” (essentially your latest assessed taxable income escalated by 8%) and also less than 90% of your actual taxable income for the year. Taxpayers who estimate their taxable income to be less than the “basic amount” must therefore be able to justify such lower estimate.
- If your taxable income is greater than R1 million, your estimated taxable income must be within 80% of the actual taxable income for the year to avoid penalties.
Please contact us with assistance in this regard.