Q&A: Must I pay provisional tax for freelance work?
If you earn income from running a business, you must file a return
Q: I receive untaxed income from freelance work beyond my full-time job. Last year it was below R30,000 and this year it is also less than R30,000. An SA Revenue Service (Sars) official told me I don’t need to fill in a provisional tax return. I am, however, expecting to earn more than R30,000 in the new tax year. In the article “Filing a provisional return is more PT, not more tax” published on BusinessLIVE on January 28 (https://www.businesslive.co.za/bd/life/2020-01-28-extra-work-goes-into-being-a-provisional-taxpayer/), it says “you must register if you earn any amount from a small business or from freelancing, or if you earn above the threshold and your taxable rent, interest or dividends exceed R30,000”. - Wanting to comply, via email.
A: Daniel Baines, tax consultant at Mazars, replies:..