Thank you
On 2022-12-09 12:31:22 Topdeckparty said:
To me it will not make sense for a wg to register as a tax payer, even though it makes life easier for certain things. I do not think that in this country paying tax offer as much benefit as it should be and if I had a choice myself, I would definitely not pay tax. One can access anything and everything without paying tax.
Although I agree with you to a certain degree, the biggest benefit for the ladies would now be the access to certain banking solutions and this comes with having a tax number & proof of income (FICA requirement). So yes, SARS would be getting ready get their big paws all over the newly legalised earnings. As and when this happens.
On 2022-12-09 14:10:32 landy said:
Although I agree with you to a certain degree, the biggest benefit for the ladies would now be the access to certain banking solutions and this comes with having a tax number & proof of income (FICA requirement). So yes, SARS would be getting ready get their big paws all over the newly legalised earnings. As and when this happens.
I was also trying to think about what benefits come from paying tax. On the other side of the coin, (formal) employees with an income under a certain threshold around R90k per annum are exempted from paying income tax. I am not sure though how/if that applies to businesses. Would you be classified as a formal or informal business (thinking how informal traders manage tax)?
Registering as a business means you can also offset expenses against income - you could get your expenses to match your income (legally) so tax on a net income of 0 is equal to, well 0.
Edited: 2022-12-09 22:25:35
Also, a girl may indicated that her income falls below the threshold and as such she is legally exempted from registering and paying any tax.
You guys got my mind racing now.
If legalised, I will be the first to apply for a job at SARS as a VJ inspector. Ha ha ha
There will be a need to do:
Quality checks to ensure it is legit,
Wear and Tear inspections, and so on.
Darn it, it would be the best job in the world.
:) :) :)
On 2022-12-09 14:53:05 johnyafrica said:
On 2022-12-09 14:10:32 landy said:
Although I agree with you to a certain degree, the biggest benefit for the ladies would now be the access to certain banking solutions and this comes with having a tax number & proof of income (FICA requirement). So yes, SARS would be getting ready get their big paws all over the newly legalised earnings. As and when this happens.
I was also trying to think about what benefits come from paying tax. On the other side of the coin, (formal) employees with an income under a certain threshold around R90k per annum are exempted from paying income tax. I am not sure though how/if that applies to businesses. Would you be classified as a formal or informal business (thinking how informal traders manage tax)?
Registering as a business means you can also offset expenses against income - you could get your expenses to match your income (legally) so tax on a net income of 0 is equal to, well 0.
The benefits of paying tax include tax free investments and superannuation. If you put around 350k into super and you are on the top rate of tax SARS will give you back about 175k.
You can also invest about 36k a year in tax free investments.
The benefits of superannuation and tax free investments are compound interest and the fact that if you start investing early enough you can retire easily rather than finding - as I guess happens - that you are too old work any more.
Added to that this is a legacy for your kids should you die.
And lets not forget the benefits of being able to show a healthy income to banks and finance providers for much lower rates on Bonds and loans for fancy cars.
On 2022-12-09 14:10:32 landy said:
Although I agree with you to a certain degree, the biggest benefit for the ladies would now be the access to certain banking solutions and this comes with having a tax number & proof of income (FICA requirement). So yes, SARS would be getting ready get their big paws all over the newly legalised earnings. As and when this happens.
FICA doesn't not require to give a Tax number ? I have never been asked for it for FICA. The only time i was asked for a income
Tax number was when buying properties, let it be financed or cash. That's it.
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