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Thread: Provisional tax - liable to submit return or not?

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    Provisional tax - liable to submit return or not?

    Good afternoon,

    I have a client with the following remuneration:

    * Rental of a vehicle
    * Directors remuneration / salary
    * Capital gain from selling shares

    Should he submit a provisional tax return or not?

    If I look at the exemptions, the salary is exempt, because it is not a trade. The Rental of a vehicle is exempt, as it is not specifically listed under schedule 4 section 18.

    The capital gain is the part I am unsure of.

    Can anyone be of assistance?

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    Directors are automatically provisional tax payers.

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    @Andromeda, thank you for your reply. I have heard this statement quite often before, but do not have proof.

    I did a little research this morning, and found 4 articles stating that from 2007, members and directors are no longer required to automatically submit IRP6's.

    But I would prefer to find something more concrete than an article...

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    You are 100% correct. Interpretation Note 5 of 23/01/2006, paragraph 4.8 confirms what you say. The Revenue Laws Amendment Act 31 of 2005, Section 49(l)(a) deletes items (b) and (BA)

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    dellatjie (09-Feb-16)

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    And this is why I love this forum! We can have constructive conversations and use our knowledge together to do research and achieve the best result. Thank you so much Andromeda!

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