How much of a capital gain should I be including for provisional tax?
By Marc Sevitz · Updated
IRP6 2016-02: My income is trading income reflected through an IRP5. This year there is also a capital gain. On e-filing form I have to add the capital gain and fill in the total under "estimated taxable income". But then the full amount is taxed at my marginal income tax rate. How much of a capital gain should I be including in "estimated taxable income" for provisional tax?
Subtract R30 000 from the gain and then add 1/3rd of the remainder. What was the gain for?
Great thank you! It was for a piece of land my husband and I owned together and sold. So I've halved the gain before subtracting the R30k and included the third. Is that correct? Also as my estimated taxable income is less than R1m, I should be safe from penalties if I provisionally submit no less than my base amount, right?
Thank you for fantastic support!
Thank you for fantastic support!
That is correct - perfect!
Only a pleasure!
Only a pleasure!
Last question: if the PAYE amount is prepopulated on SARS eFiling but those amounts were not actually paid, do I have to override that?
You should put in the correct amount that was paid.