NBC Accounting Solutions

01/01/2023

17/05/2022

We strive to maintain a relationship of Trust, Confidentiality and the Delivery of Excellence with all our clients. Contact us for assistance with your income tax return and together we can prevent that sinking feeling !

16/03/2022

STARTING A NEW BUSINESS ?

Often not sure how many times you have to turn your cents around?

With the assistance of a Team, dedicated to giving the best advice and service, starting from the registration to administration of your new company and all related accounting needs afterwards.

We have affordable monthly retainers to suit your budget with personalised and professional service guaranteed.

Contact us directly on WhatsApp or Messenger or email us at [email protected]

11/02/2022

Cryptocurrency (typified by Bitcoin) is an internet-based digital currency that exists almost wholly in the virtual realm. In South Africa, the word “currency” is not defined in the Income Tax Act (the Act). As such, cryptocurrencies are not regarded by SARS as a currency for income tax purposes or Capital Gains Tax (CGT). Instead, cryptocurrencies are regarded by SARS as assets of an intangible nature.

Whilst not constituting cash, cryptocurrencies can be valued to ascertain an amount received or accrued as envisaged in the definition of “gross income” in the Act. Taxpayers are also entitled to claim expenses associated with cryptocurrency accruals or receipts, provided such expenditure is incurred in the production of the taxpayer’s income and for purposes of trade.

Gains or losses in relation to cryptocurrencies can broadly be categorised with reference to three types of scenarios, each of which potentially gives rise to distinct tax consequences:

(a) A cryptocurrency can be acquired through so called “mining”. The “miner” is rewarded with ownership of new coins which become part of the networked ledger. This gives rise to an immediate accrual or receipt on successful mining of the cryptocurrency. This means that until the newly acquired cryptocurrency is sold or exchanged for cash, it is held as trading stock which can subsequently be realized through either a normal cash transaction as described in (b) or a barter transaction as described in (c) below.

(b) Investors can exchange local currency for a cryptocurrency (or vice versa) by using cryptocurrency exchanges, which are essentially markets for cryptocurrencies, or through private transactions.

(c) Goods or services can be exchanged for cryptocurrencies. This transaction is regarded as a barter transaction therefore the normal barter transaction rules apply.

The onus is on taxpayers to declare all cryptocurrency-related taxable income in the tax year in which it is received or accrued. Failure to do so could result in interest and penalties.

01/02/2022

PROVISIONAL TAX EXPLAINED
Provisional tax is not a separate tax from income tax. It is a method of paying the income tax liability in advance, to ensure that the taxpayer does not have a large tax debt on assessment. Provisional tax allows the tax liability to be spread over the relevant year of assessment. It requires the taxpayers to pay at least two amounts in advance, during the year of assessment, which are based on estimated taxable income. On assessment the provisional payments will be off-set against the liability for normal tax for the applicable year of assessment.

ARE YOU READY FOR YOUR FINAL PROVISIONAL TAX SUBMISSION FOR 2022?
The second provisional tax payment must be made no later than the last working day of the year of assessment and for majority of companies this will be last business day of February. Note that all companies automatically fall into the provisional tax system.

TOP TIP: Remember that, by submitting the return and payment timeously and accurately, you can ensure a hassle-free, smooth submission. Insufficient payment and/or underestimation of taxable income may lead to you being charged with penalties and interest.

Contact NBC Accounting Solutions now to assist in your provisional tax calculation and submission to ensure that you are not penalised later on.

24/01/2022

The time is now ! You can apply for a reduced tax rate from SARS if your earnings are based on commission.

A tax directive is an instruction from SARS to allow an employer to deduct a lower tax rate for your PAYE deduction and could be beneficial to not be charged at the marginal tax rate.
An estimate of your yearly commission and allowable deductions are used by SARS to determine a fixed percentage to be deducted from your earnings by your employer. Employers are not allowed to alter the tax rate without a tax directive approved by SARS.

Contact NBC Accounting Solutions if you would like to find out if you could qualify for a fixed percentage tax directive.

08/07/2021

SARS Tax Filing Season for Individuals opened 1 July 2021.

Contact Natasha Clingen from NBC Accounting Solutions on 082 327 0179 to take the headache out of your 2021 filing season!

10/03/2021

COMPANY SECRETARIAL SERVICES

Formation of companies

Amendments or additions to statutory records

Maintenance of statutory records and company registers

CIPC annual returns

10/03/2021

PAYROLL

Monthly payroll administration

Submission of monthly EMP201 returns to SARS

Preparation and submission of EMP501 reconciliations (produce annual IRP5s)

Submission of monthly UI19 returns to UIF

Calculation and submission of Annual Return of Earnings to WCA

Remuneration restructuring and advisory services