Financial Year-End Tax Deductions

The following types of businesses are liable to submit a return under the Income Tax Act, 1962 for the payment of tax on all income received by or accrued to them within a financial year:

  • Listed Public Companies
  • Unlisted Public Companies
  • Private Companies
  • Close Corporations
  • Co-operatives
  • Collective Investment Schemes
  • Small Business Corporation (s12E)
  • Body Corporates
  • Share Block Companies
  • Dormant Companies
  • Public Benefit Companies
  • Sole Proprietors
  • Partnerships (each to do their own return)

Tax Returns Due

Remember to make the most of your tax deductions. Here is a list of some “forgotten expenses” that in most cases, you can claim:

Throw a party: if you threw a “thank you” or Christmas party for your employees and/or clients, this can be claimed for.

Travel: if you combined a family holiday with a business trip you can claim a percentage of the expenses for business.

Education: educational events and studies can be written off, for example: seminars, workshops, part-time studies, as these contribute to making your business better.

Entertaining: if you took your clients or colleagues to a show, watched a rugby or soccer game or out to dinner for example. This expense is to promote your business and stimulate employee morale.

Cell phone: calls and contracts.

Computer costs: new equipment, software, repairs, ink cartridges, Internet providers and website hosting services.

Advertising: remember that marketing your business, ensuring it is visible and people are aware that you exist is very important. Don’t forget to budget for this and these expenses can be claimed. Examples of advertising: signs, flyers, newspaper ads, Internet marketing etc.

Accounting fees: it makes your life a lot easier and less stressful by hiring a professional accounting firm to take care of all your tax affairs. Professional accountants can also make the most of your claim and try get you the best refund for your business AND…..they are tax deductible too….. So if you pay 28% and your accounting fee is say R10 000 – effectively you only pay R7 200 – it’s like getting a 28% discount…. J

Other expenses that are also in most cases claimable:

  • Bank charges
  • Interest paid: on bank accounts & business credit cards
  • Legal fees: related to your business
  • Samples: if you are considering buying a product for the business
  • Electricity & water
  • Insurance
  • Staff salaries & wages
  • Staff welfare & training
  • Staff medical aid
  • Maid salary (for business): including bonus
  • Gardener salary (for business): including bonus
  • Cleaning products
  • Repairs and maintenance: such as plumbing, electrical, tiling, painting etc
  • Rates: annual for your business premises
  • Rent for your business (or part thereof)
  • Bond interest: not your monthly repayment, only the interest paid to the bank or other home loan provider
  • Security
  • Minor fixed assets: for example desk, chairs under R7000 each
  • Vehicle petrol, oil, repairs & insurance: only if the car belongs to the business
  • Printing & stationary: this can also include newspapers and magazines that are relevant to your business
  • Refreshments

Some more information:

Provisional tax payment due dates for this 28 February 2014 year-end:

  • 1st payment was due by 31 Aug 2013
  • 2nd payment is due this 28 Feb 2014
  • 3rd payment, which is voluntary, is due on 30 September 2013  (for 2013) / 30 September 2014 for 2014

Provisional tax payment due dates for a 31 May 2014 year-end:

  • 1st payment was due on 30 Nov 2013
  • 2nd payment is due on 31 May 2014
  • 3rd voluntary payment is due on 30 Nov 2014

Be prepared and speak to one of our professional accountants today. Have peace of mind knowing that your tax affairs are being taken care of, so that you can continue with business.