To those individuals who comment: what is the total % tax (including income tax) that a person pays (VAT, excise duty, all the other levies etc) - here is my official statement:
Your effective tax plus whatever else.
It obviously differs from person to person.
When I'm older and uglier, I want to do my PhD in Tax (with a philosophy angle) about Tax Morality, but from both the taxpayer and the tax authority point of view.
I reserve my opinion and any value judgement on the total tax per capita we pay vs what we get in exchange.
As a follower of the Stoic philosophy, it makes no sense to me to research this topic extensively, especially since I'm not a researcher or student and that I don't have time to tackle such a huge topic at this stage.
I get it. You're pissed off about all the tax you have to pay in SA vs what you get in return.
But for now, here's my counter argument: Can you (as an individual) do anything to change that?
If not... then you have no choice but to accept it.
If you can do something to change that, such as emigrating, then go right ahead.
Complaining about the crappy cards you have in your hand doesn't change the fact that you're still at the poker table.
Play the hand, or go to another table.
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Thread on bonuses and other windfalls (via employment) like share options and commission.
Getting a bonus is fun. But losing almost half your bonus to tax isn't fun.
Here's why it happens and what to do about it.
1. The salary is annualised; 2. The tax on the full annualised salary is calcuted; 3. The tax is then divided by 12 to get to the monthly PAYE to be calculated.
It's important to note that the annualised salary only takes into account THAT month (not other months).
As we close out this year and plan for 2022, for those who feel like goalsetting isn't working for them - try the systems approach (credit goes to: @JamesClear)
Goal: Jiu-Jitsu black belt in 10 years
System: Go to Jiu-Jitsu twice a week
1. By creating a system (how / when / what you'll do on a daily / weekly basis) it feels like you're making steady progress.
What's great about the systems approach is that you don't need to operate with goals at all.
2. Even though it is my goal to get my black belt, that's not really the focus at all. The focus is on getting on to the mat. The belt is just the outcome.
Systems are focused on the journey.
Goals are focused on specific outcomes.
(Thread): How to claim Working from Home (as an employee) for the 2021 tax return.
1. What you'll need: 1.1 Square meter of your home and home office, for example: 100m2 and 10m2. This will give you a percentage: 10/100 = 10% 1.2 Letter from your employer stating that you were working MAINLY from home from x date to y date. 1.3 Bank statements / bond statements
2. Your homework:
2a) Summarise the following: Rent / interest paid on bond; water & elec; telephone; internet; stationary; cleaning; office equipment = say this is in total 150k
2b) Work out the 10% home office component of it. 10% of 150k is 15k
Prepare for the 2021 tax season: 1. Dig out your eFiling login details, 2. Grab your income/deduction sources:
IRP5s for salary,
IT3B/IT3C for investment
RA cert for RA
Logbook for travel
Medical cert for medical etc 3. Request the 2021 tax return on or after 1 July
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4. Compare the numbers on the 2021 tax return to the numbers on your own supporting documents (don't simply accept SARS info)
5. Click calculate on the 2021 tax return, to get an idea of any tax you might get back or have to pay SARS (the calculator does not incl Prov Tax paid)
6. If you're confident in the numbers, click submit or contact a professional before you do. The submit button like running and jumping into a pool. You can't reverse the jump.
Mistakes are expensive to fix 7. Download the assessment and statement of account