Excellent Video Boet. Moment of silence for all Employees who came here thinking they could get more from SARS. Start a business guys.... its hard work but worth it.

Dear reader: it’s worth it 🔥 Watch it.

There is good info here. Something to include though: > when qualifiying for SBC the business is now required to employee at least 3 people (among other things) > these 3 people cannot be owners/shareholders. > the moment you register another business in your name you are disqualified from SBC See section 12E of the Tax Act. This is essentially a type of tax.

@AndreBothmaTax

2 ай бұрын

SBC video is going up today

i am a 21yr old engineering student graduating in 2yrs. one thing i’ve learnt through wealthy people is how they are able to manoeuvre their away around paying taxes. where can i learn about South African taxes? (other than your youtube videos of course) what makes avoiding taxes legally so difficult? where can i go to learn about taxes the hard way by myself? id like to prepare for the future

I have shared this with a friend. You have explained beautifully and thus easy to understand. Thank you.

KZread must recommend more of these kinds of videos👍

I like how the videos are short and informative at the same time. New Subscriber unlocked🔓

@AndreBothmaTax

Ай бұрын

Ah, thanks so much!

I wish they gave us a crash course like this in Business School.

awesome video. gonna scratch through your other videos hoping to find something for income tax for individuals

Just saw this link on X and I’m here

Thank you for this. It's a big pain point for me that we South Africans struggle to find good, free education on taxes that isn't full of hard-to-understand jargon. Nobody helps us to save our hard-earned profits either, which SARS reaps with abandon. Again, thank you. This was great advice.

@AndreBothmaTax

Ай бұрын

It's a pleasure and thanks for the heartfelt comment!

Dankie. I've been singing about this Turnover tax to anyone who will listen. Now I will look into this SBC business🤔😍👍

@AndreBothmaTax

Ай бұрын

It`s a pleasure!

@babalwakilani6976

23 күн бұрын

How do you get into this turnover tax thing?

Hi Andre, this is useful, how does being registered as an independent contractor compare?

Awesome stuff.

@AndreBothmaTax

2 ай бұрын

Glad you enjoyed it

5:00 if you own the Pty the effective tax you pay can be more than 45% if the company pays you a high salary, and the company pays income tax on the taxable income. Tax has too many permutation. Whatever choice you make you win some benefit and lose some benefit 😊

If you 'in theory' have excess S18A donations not claimed, if the balance remains high every year of assessment ie. the pty doesn't make profits, can SARS offset the future S18A deductions against other tax debts e.g. PAYE, VAT etc.? Excellent spot, I never hear anyone talk about turnover tax!!!

Great video ✨

@AndreBothmaTax

Ай бұрын

Glad you enjoyed it!

I would love if you can do a video on what counts as profit in a business

Hi Andre what are the tax benefits of a company that sponsors/donates to an sports team?

Would you recommend moving away from a CC? I know you cannot register one anymore, but there are some legacy ones still running

Hi there Very interestingg information thank you for sharing. How does one know if you qualify for turnover tax? Can a retired person also qualify for turnover tax when their income is from interest on capital in the bank?

Worthy of my subscription..

@AndreBothmaTax

Ай бұрын

Ah, thanks for that!

Turnover Tax can be expensive for a business with low margins. If you make R990 000 and your expenses are R920 000, for example, you'll be better off on the income tax system. Another problem is that the threshold has been R1m for more than a decade, so inflation will eventually push you out of the system.

@AndreBothmaTax

2 ай бұрын

I don't like turnover tax myself - see my latest upload about that.

@intelimagic

2 ай бұрын

You seem to be a clever person. Why would you run a business that has such low margins in the first place if you only sell 1 mil a year?

@mundusuys8739

2 ай бұрын

@@intelimagic "Turnover Tax" was introduced to regularise small traders. It is only effective for small sole proprietors, it excludes certain professions and is not really not a 'tax trick' to be used by others.

@littlered7820

Ай бұрын

@@mundusuys8739 The whole concept of tax is a dirty trick.

What if i put my trust in a tax haven and the company headquarters there but the operating company is in south Africa, how does that work out

does bee come into play when selecting one of these tax structures? if so please elaborate. thamk you

Turnover tax is awesome in circumstances where taxpayers who for e.g. operate as sole proprietors and whose business is more service-related like for eg an artist, photographer, service providers not excluded, where costs to operate are lower. My clients who are registered for TT are paying as little as R11k on R900k income per annum. You just can't beat these tax rates, but obviously the circumstances have to be right. The drawback in my experience is it is still quite a manual process to get registered and file returns. Assessments take a while too.

@AndreBothmaTax

2 ай бұрын

Yeah I made this point in my latest turnover tax video.

@littlered7820

Ай бұрын

I feel sorry for your clients - that's because turnover tax is loaded in SARS favour....it should instead be based on net PROFIT, not turnover [ that's if you believe in handing your hard earned money over to a corrupt entity like govt anyway ].......simple maths tells you a % of turnover is often a higher figure than the actual profit at the end of the day, which means the business owner is losing.

Any pty with qualifying turnover can claim small business deductions. Currently the best way to not pay tax is 12B solar investments. 12J was also great while it lasted.

How can I do this with crypto?

Brilliance

@AndreBothmaTax

Ай бұрын

Thank you!

I need to watch more of your content. I am 25 and left my job after 6 years and working for myself in multiple field. Brand/Logo Design - Photography (wedding mainly) - Signage & Print Design etc etc I am considering putting photography and design/print business under something to not get caught. I am working for myself currently as my own name. I am making invoices and bills to try prove everything just incase. I should be looking at SBC by the looks of it, but when do I make the decision to make a move? S p.s apologies, so far experience and KZread is my knowledge

@AndreBothmaTax

Ай бұрын

Please send me an email at andre@irhafu.com for a free chat about your business

Gold

If I buy a 1m rand house with crypto, will I be taxed when I make the purchase or will I be taxed if I sell the house

@starboy1380

29 күн бұрын

Yes yes and yes. Crypto isn't a safe haven anymore. SARS and all other revenue services have access or should I say work with every crypto exchanges. Just pay tax and be safe

Here's an interesting question. I have a personal property that's in our names, but I want to move it to be under a company, where the tax and income etc. Become the companies? Is this a thing and possible? And is it even worth it?

@AndreBothmaTax

Ай бұрын

We can set-up a free call with my Exec Assistant to chat about it: faudia@irhafu.com

sir i really need to know what can forex traders do to lower tax or can a forex trader qualify for a SBC

@corneleroux6472

Ай бұрын

Yes donate to ngo😂

So how does Turnover Tax Work then? Do you make a PTY LTD and then register for turnover tax with that business if you are under 1 million turnover per year? The video makes it seem like a separate thing to PTY LTD, Is it?

@balsak007

2 ай бұрын

There are certain criteria. And your accountant will certainly advise you if you can qualify. Why would this guy say that your accountant would keep quiet - bs

@bluetbird420

Ай бұрын

@@balsak007 seems like I need your accountant. I need to know more how you structure your business finance since my accountant is clueless 🙄

Thanks Andre for these helpful insights 🫡

turnover tax seems dangerous.. say if you paying 1% turnover tax but you profit is only 2% for a particular year, you have an effective tax rate of 50% on your profits.

@jaclinb3224

2 ай бұрын

Net profit margins vary by industry but according to the Corporate Finance Institute, 20% is considered good, 10% average or standard, and 5% is considered low or poor. So if you're only making 2% net profit, you would need to review your business strategy urgently.

@AndreBothmaTax

2 ай бұрын

Turnover Tax is not a system I actually advise people to register for. It is best for high margin creative work

@khulanimazibuko8370

Ай бұрын

​@@jaclinb3224thanks for that information,please share more on strategy

Please get professional advice. For example, an SBC is not a type of company. It is a tax regime and should not be compared like this. A pty can be an SBC. A rudimentary understanding of tax structures will get you into trouble quick!

I just realised if I am earning R150k per month I have to pay R58k in tax😂😂😂No way im paying that

🙏

@AndreBothmaTax

Ай бұрын

Glad it helped!

SBC. What Act is it? ❤

@AndreBothmaTax

2 ай бұрын

Section 12E of the Income Tax Act

Dont earn money....boom, no tax!

Like this,,,,,what cash?

I'm on Turnover Tax👍

@MoreThanRuan

Ай бұрын

I’m busy with the process.

@AndreBothmaTax

Ай бұрын

Fantastic

Hey brother , good video!! didn’t see anything about a tax Directive as most sales or financial advisors also operate as businesses 👍 maybe something to also touch on.

@AndreBothmaTax

2 ай бұрын

I personally dislike tax directives as the annual tax the person is supposed to pay is often higher than the percentage applied for in the tax directive.

Paying taxes is not mandatory. Meet your Strawman.

@garthgreybe9364

Ай бұрын

Please explain @DVDesignSA how paying taxes is not mandatory.I'm interested to hear your thoughts. Unless one moves to those 17 countries who do not impose income tax on its citizens.

@AndreBothmaTax

Ай бұрын

Exactly.

@littlered7820

Ай бұрын

You are correct.

@littlered7820

Ай бұрын

​@@garthgreybe9364 Gift of Truth, a local organization, delineates it all.

I need your help André.

@AndreBothmaTax

Ай бұрын

Please send me an email at andre@irhafu.com for a free chat

Where have you been all my life

@AndreBothmaTax

2 ай бұрын

Thank you for the comment!

@luciendasilva3862

2 ай бұрын

@@AndreBothmaTax Suggestion - Please make a video about Solopreeners and how they can get the most out of their tax. Especially if they are over R1m a year in billables.

I guess one thing to note is that the author states that this is for your small business, not you as the individual. This is important because if you have a SBC and you're only on 20% that sounds fantastic, but that money is not yours to spend, its your business's money! You still need to take out a salary and then pay PAYE on that salary as if you were employed by a different company. In other words, the tax man always wins!

@AndreBothmaTax

2 ай бұрын

The salary you take from the business is still an expense. For example if your SBC does 1 mil in sales, and you only need a salary of 30k per month, the tax is going to be way less than if you received that 1 million as a sole proprietor.

The danger with turnover tax is that you will still pay the tax even if you incur a loss for the year. And just a correction on sole proprietors - they can incur an assessed loss on trading activities, which can be set off against any future trading profits they make in that same trading activity that incurred the loss (ring-fenced).

@AndreBothmaTax

2 ай бұрын

I don't recommend turnover tax to most of my clients.

No!

@AndreBothmaTax

2 ай бұрын

What?

@littlered7820

Ай бұрын

@@AndreBothmaTax No legalized robbery !!!!!

Hi Andre - I've emailed you from my Gmail Account - Please keep an eye open in case it gets filtered. Thanks

@AndreBothmaTax

Ай бұрын

Got it!

There is an implied tax in that the minute you need someone to do your taxes it is money you need to pay just to BE a business even if you don't have any income. The many regular returns you have to do themselves becomes a form of tax. There is a video doing the rounds of this chick asking: "If you give me $500 that you have already paid tax on, and I have to pay tax on that 500 income, that's twice tax has been paid on that $500 and if I buy something with that $500, I must pay tax... on that $500.. and the person who receives that money from me in a sale must also pay tax on that $500.... so..." ... then she gives up trying to trace just how much government is making on that $500... why? Because... ...Tax is a scam.

@littlered7820

Ай бұрын

Totally agree !!!!....

Don't make profit in your business. Simple. Pay yourself a higher salary, you'll end up with at the most 45%. To get your retained income out, you need to pay 20% dividend tax after the 27% company tax. That just stupid. Employ your retired family at threshold, which they open each a separate bank account but the cards given to you. You're welcome

@mundusuys8739

2 ай бұрын

The effective maximum tax rate of a company, if you take out all the profit, which is rarely the case, is only 41,6%. (27+(100-27)*20). Ideally you would utilise the primary rebate and lower brackets in salary for the individual until 41%, then pay the rest as dividend. Also, be careful of paying salaries to people who don't actually work for the company - the deduction may be disallowed on the general deduction formula ("expenses incurred in the production of income"). If there is a credit shareholder loan payable by the company, charge interest payable to the shareholder, for which there is an exemption of about 20k per individual. Diclaimer: Not tax advice - consult your tax practitioner.

@balsak007

2 ай бұрын

@@mundusuys8739 Yes makes sense. But who will know that someone receive a salary that is not in production of income, if there is a contact etc in place. I say, don't show any profits, then adjust your salary to the 41% tax as you advised. Any leftover profit, be creative ie open an NPO who can pay other expenses or employ family how I mentioned above

@mundusuys8739

2 ай бұрын

@@balsak007 It is unlikely to be detected, but still, you'd be a cheat. The 'racket' you describe there, with the bank accounts on other's names etc. is downright fraudelent. What if you had a fallout with Mommy and she rats you out? There'd be a trail of false EMP returns & recons and bank statement entries for years. Getting away with it is not an achievement.

@bluetbird420

Ай бұрын

I need to know more, just about lost it with my accountant the other day, the amount of tax I need to pay is ridiculous

@careljordaan3291

Ай бұрын

​@@balsak007 So your advice is to commit fraud. Nice!

Start asking questions. In all your doing get understanding.

@AndreBothmaTax

Ай бұрын

100%

Very misleading. Sole proprietor tax is higher but the money is in your hands. Company tax may be less but to get the funds into your hands you have to pay dividend tax or equivalent. SBC tax is a good option for smaller businesses but other than that this is just regurgitating the tax rates everybody knows.

@AndreBothmaTax

2 ай бұрын

Misleading on what basis?

@djp337

2 ай бұрын

We can NEVER assume “everyone knows” - that is a strong use of words. But hey, I’m just here for perspective 🍿

@pistolshr1mp

2 ай бұрын

@jason. Using your tactic I could say "You are very stupid... because... well use your imagination". Not helpful.

There are 17 countries around the world that don't levy their citizens with income tax.

@AndreBothmaTax

Ай бұрын

What does that have to do with the video I made?

@littlered7820

Ай бұрын

​@@AndreBothmaTax Do you honestly think handing over your hard earned money to a corrupt, ethically deficient entity like govt who is at war with you, makes any sense ????

I am a registered tax practitioner, and this is the WORST tax advice I've seen. If only taxes were this simple. This video is a joke. Your accountant will proof me right.

@balsak007

2 ай бұрын

Same and agreed

@AndreBothmaTax

2 ай бұрын

I'm also a registered tax practitioner. Please explain to me what I got wrong.

@AndreBothmaTax

2 ай бұрын

Please tell me what I said was factually incorrect.

@markpattison6031

2 ай бұрын

Pity you can’t spell though

@jarrodgarces

Ай бұрын

A Man Convinced Against His Will, Is Of The Same Opinion Still.!