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Thread: The true cost of a fly rod.

  1. #141
    Join Date
    May 2007
    Location
    Parys, Free State
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    10,024

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    Quote Originally Posted by Jean Bence View Post
    http://artright.co.za/artbusiness/mo.../turnover-tax/

    Ok basically this answers my concerns Carry on
    That tax bracket figure is out dated the new one is something like 15k...
    Gerrit Viljoen

  2. #142
    Join Date
    Nov 2006
    Location
    Western Cape
    Posts
    7,613

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    Yes , just remember that turnover tax is a lot more expensive to you, unless you are making very high margins, at least 50%. but the higher your turnover, the higher they rate, so its a bit of a catch 22. Also if you are turnover registered in your own private capacity, an audit will be done on the trading entity, which is you personally, so they will crawl up you @ss with a microscope, and audit all your private affairs. Any income that you generate will be considered turnover, and you will be expected to pay turnover tax on it. Audits by sars are not a matter of "if", but "when".
    The problem with turnover tax, is that it is very expensive compared to vat, but was designed to bring micro enterprises that are under the VAT threshold, into the tax net. The main difference between turnover tax and vat, is that vat only taxes the value added portion, which is basically your profit margin, with the advantages of getting refunds from service providers such as Telkom Mnet Escom etc etc, whereas turnover tax does not take profit margin into account, and does not offer any refunds on input costs. If you are trading in your personal capacity, why would you have decided to go with turnover tax, instead of simply applying basic income tax. As a sole trader, or a private trading individual, I fail to see any advantages, I hope I'm missing something here, but in my own investigations into it over the past several months, I haven't really seen any advantages. Maybe that's just me.
    Remember also, that turnover tax does not replace provisional tax or income tax, which you will still have to pay. Your turnover tax is a tax on your turnover, your provisional tax is your income tax, you will have to pay both, according to sars, unless you are under the basic income tax threshold, which is very low.
    Quote Originally Posted by The Largie Whisperer View Post
    No risk I'm a straight shooter and pay tax according to my turnover simple as that it's the best option for a SP ever wondered why non one "knows" about it or why Accountants never mentions this to their clients....? I was lucky enough to have heard it from my uncle and jumped right on it!

    Ps. Only kek is when I start turning over millions I would have to either bs my way around it or go back to Provisional tax or trade as a company.
    Last edited by Andre; 10-06-14 at 10:58 AM.
    Disclaimer.... none of my posts are intended to be "expert advice"..just opinions from someone who is willing to help where he can.

  3. Default

    Sitting in hospital for a number of days with not much else to do made me relook my Podcasts ... this is a nice one related to this thread - starting around the 09:00 mark ....

    http://midcurrent.com/podcasts/jim-b...de-in-america/
    Mario Geldenhuys
    Smallstream fanatic, plus I do some other things that I can't tell you about

    "All the tips or magical insights in the world can't replace devotion, dedication, commitment, and gumption - and there is not secret in that" - Glenn Brackett

  4. #144
    Join Date
    Jul 2009
    Location
    Gauteng
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    1,395
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    Shame man, Mario, sorry to hear again about the kids. Hope they all get better soon.

    Thanks for sharing the podcast!

    J
    Check out some of my FF pics - http://www.flickr.com/photos/30562135@N07/

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