1. Startup and Navigation

  1. Double click the Excel file you downloaded.
  2. Macros must be enabled before the tool will start up and become active.  To do this click on the “Enable Content” button in the yellow notification bar.  In older Excel versions you may first need to click “Enable Editing” in the notification.  Thereafter the “Enable Content” option will appear.  You can also go to File>Options>Trust Centre>Trust Centre Settings>Macro Setting to enable Macros.

  3. If it is the first time you are opening the tool, it will prompt you to complete your details.  These details are used on the reports to reflect your branding.

  4. Next, you will see the Disclaimer and Copyright screen.  You must click accept to be able to continue.  Should you not agree, click decline and the tool will close after a brief message.  Please ensure that you familiarise yourself with the contents of this screen before continuing.

  5. The tool is now ready for use!  It opens the “Personal Tax” tool by default.  This cannot be changed.

  1. Saves the app together with the information you captured.
  2. Resets the app back to its “Factory” state.  This option clears all information that was captured and restores the tool to a blank state.
  3. Closes the app.  You will have a choice between saving or not saving the app before it closes.
  4. Opens the Personal Tax tool.
  5. Opens the Retirement Contributions tool.
  6. Opens the Retirement Lump Sum tax tool.
  7. Opens the Withdrawal Lump Sum tax tool.
  8. Opens the CGT Investments Multiple Withdrawals tool.
  9. Opens the Transfer Duty calculator.
  10. Opens the comprehensive tax and financial planning opportunities report.
  11. Opens the short tax report.
  12. Prints the screen you are on to any printer available on your computer.
  13. Creates a PDF file of the screen you are on, that can be saved and emailed to a client.
  14. Takes you to the online support documentation (the webpage you are on now).
  15. Takes you to the online training course that is available in addition to the online documentation.  The online course also includes case studies and various business models that can be adopted to grow your practice using the tool.
  16. Displays our contact details.
  17. Takes you to a webpage where you can submit suggestions for enhancing the tool with further functionality.
  18. Update the information you captured for customising the reports.

Yellow fields indicate fields and values that can be entered by the user.  These fields are not compulsory, but they are open fields where information can be entered and changed.

Certain yellow fields consist of a drop-down box.  Only the values indicated in the drop-down box can be entered or chosen.

All other fields (in other words the white fields) are locked and calculated automatically.  The user cannot change these fields, nor can you click on it.

There is one exception.  The inflation and investment return fields on the Personal Tax screen can now be selected by the user, but values are restricted to the drop-down list.

Certain white fields can be completed by clicking on an available button (if applicable), for example, company car information, etc.

  1. Click the “Save” button.

  2. The “Save As” dialog box will open.

  3. The system will automatically suggest a name for the file, consisting of the client’s name and the tax year.  However, you can save the file with any name you like.  Just change it in the “File Name” field.
  4. Choose the destination (i.e. the folder) where you would like to save the file and hit the “Save” button.
  5. If you would like to save the file with the same name, just click on the existing file in the correct location to overwrite the existing file.  No problem!

  1. Click the “Reset App” button.
  2. A message will be displayed requesting confirmation that you indeed want to reset the app.
  3. Clicking “OK” will reset the app back to a blank state, i.e. it will clear ALL captured information and save the file at the same time.  Once you click “OK”, you cannot stop the reset, nor can you undo it.  So be careful!
  4. Click “Cancel” to abort the reset and keep your data.

  1. Click the “Close App” button if you want to close the entire application.  You can also click the “X” in the top right hand corner of the app.
  2. Message is displayed to confirm if you want to save before closing or close without saving.
  3. Click “Yes” to first save the tool and information.  Refer to “How do I save the client calculations?” above, as the same “Save As” dialog will be displayed.
  4. Click “No” if you do not want to save the file.  The app is reset before closing, meaning you will lose any information you captured.  Same as when resetting the app.

2. Customising the tool

  1. Click the “Update your info” button.
  2. A form showing the existing information will be displayed.
  3. Change any of the information displayed.
  4. Click “Submit” to update your information.

You can change any of the logos in the tool, following the same process wherever you would like to change the logo to your own branding.

  1. Right-click the logo you would like to change.  The right-click context menu will open.
  2. Choose “Change Picture”.
  3. Choose “From a File…” (Alternatively, if you copied the picture to your clipboard, choose “From Clipboard…”.

  4. The “Insert Picture” dialog box will open.  Find the image file of the logo you would like to use and select it by clicking on the file.
  5. Click “Insert” to insert your logo into the tool.

  6. The logo is now changed to the image you selected.

  7. Suggestion:
    1. Do this with your master file that you downloaded, BEFORE starting to use the tool on clients.
    2. Once you changed all the logos in the tool, click the “Save” button and overwrite your master file as explained earlier.  In fact, you can even choose your own name for your master file at this point.  This will ensure that the tool is now permanently white labeled with your branding and you never have to change it again.  Well, unless your branding changes.  Or you get an update of the tool.

3. The tools summary

The “Personal Tax” tool is used to quickly and effortlessly calculate the tax liability of an Individual Taxpayer.

The tool can be used in a variety of ways:

  1. Calculate the tax payable when preparing a client’s tax return.
  2. Estimate the tax payable for the applicable tax year ahead.  This is especially handy for retirement planning or if someone is changing jobs and will have a change in their remuneration.
  3. Structure a client’s remuneration package.
  4. Determine the effective rate of the taxpayer.  This is the best rate to use when doing a Financial Needs Analysis and is very handy for Financial Advisers and Planners.  Accountants will also find this very useful when guiding clients with making financial decisions.
  5. Quickly identify opportunities for financial planning or to refer such opportunities to a strategic partner.
  6. Provide added value by presenting a client with more than just a tax calculation.

The tool forms the basis for all calculations included in the reports.

Once the Personal Tax information has been captured, the system will calculate the maximum allowable deduction for Retirement Fund Contributions.  The system will illustrate the tax saving when the maximum deduction is used.  It is also possible to select any other amount, and the system will once again calculate the tax saving.

A high risk area is advising clients on the tax they will pay when they receive a lump sum from their retirement fund when they retire.  Reason being the aggregation rules.

The Retirement Lump Sum tax tool can be used in the event of retirement, death or receiving a severance benefit when the Taxpayer qualifies in terms of the Income Tax Act.

Aggregation is applied effortlessly.  All you need to worry about is the information required.  The tool does the rest.

Not only does the tool serve to make sure SARS is issuing the appropriate directives, but it also helps to advise the client in the event that they want to take a lump sum, how much they should take and the impact thereof.

A high risk area is advising clients on the tax they will pay when they receive a lump sum from their retirement fund when they resign from their employer.  Reason being the aggregation rules.

The WithdrawalLump Sum tax tool can be used in the event of resignation or voluntary retrenchment.

Aggregation is applied effortlessly.  All you need to worry about is the information required.  The tool does the rest.

Clients tend to make multiple withdrawals from their investments.  The tool calculates the base cost of each withdrawal and keeps track of the remaining base cost.  The tool also calculates the gain or loss applicable.

A simple tool to calculate the transfer duty paid when buying or transferring an asset.

The Summary Tax Report is ideal for Tax Practitioners, Tax Consultants, Accountants and Bookkeepers who are only in need of doing quick calculations and generating a report to give to their client.

The summary report summarises the tax calculation of the client, the outcome of the calculation and the effective and marginal tax rates of the client.

Clean, quick, effortlessly.

And now you can include your own custom notes to your client!

The Full Tax Report includes the same information as the Summary Tax Report, but it provides invaluable information derived from the tax calculation.

The report summarises the tax calculation of the client, the outcome thereof and it explains the effective and marginal tax rates applicable to the client.

The report then explores retirement fund contributions that are not being utilised and what the impact will be on the client’s tax liability as well as their retirement, if they were to make use of the opportunity.

We built an algorithm that estimates how much income will be lost in the event of the client’s death, disability and retirement.  This is not based on the total income of the client.  It is an intricate calculation that differs for each event.

The report now includes further opportunities such as restructuring opportunities, investment opportunities, medical aid and gap cover.

In our online course, we explore how the report can be used to grow your business, no matter what part of the profession you work in.

The purpose of the report is to make clients aware of possible blind spots and missed opportunities.

4. The Personal Tax Tool

The client information on the “Personal Tax” screen must be completed, if you would like the client’s name to show on the Lump Sum Tax tools when only using those tools.  The client information is used on the reports as well as to drive many of the calculations.  ALL of the fields must be completed to ensure the correct working of the tool.

  1. Name – Enter the name of the client as you would like it to be displayed on the reports and other tools.
  2. Current age – this is the age the client will be on the last day of the tax year that is applicable to the version of the tool.
  3. Age at Retirement – enter the age the client plans to retire.  This is crucial for the retirement calculation in the Full Tax Report.
  4. Married – choose the marital status of the client from the drop-down box: Unmarried, COP or ANC.  COP is In Community of Property.  ANC is Out of Community of Property.  This is very important to ensure correct calculations as the tool considers the marital regime.
  5. Inflation – this can now be set by the user.  It is an important assumption for calculations in the Full Tax Report to ensure we account for the effects of inflation.
  6. Net Investment Return – this can now be set by the user.  Another important assumption for calculations in the Full Tax Report.

All amounts entered must be total ANNUAL amounts received.

Numbers 1 to 8 are all remuneration types of incomes, whereas the rest of the incomes do not form part of the definition of remuneration.

  1. Salary – Enter the total salary earned for the year.
  2. Commission – Enter the total commission earned for the year.
  3. Bonus – Enter the bonus amount received for the year, if applicable.
  4. Overtime – Enter the overtime amount received for the year.
  5. Retirement Fund Contributions Empr – The total contributions made by the employer to retirement funds on behalf of the Taxpayer.  This excludes any contributions made by the Taxpayer.
  6. Medical Aid Contributions Empr – The total contributions paid by the employer to a registered medical aid for the Taxpayer.  This excludes the Taxpayer’s own contributions.
  7. Use of company car – this amount cannot be captured directly in the field.  Click the “Capture Company Car” button to enter the relevant details.
  8. Other Fringe Benefits / Allowances – The total amount of all other fringe benefits or allowances received during the tax year.
  9. Annuity / Pension Income – The total amount of income received via an annuity or pension vehicle.
  10. Business Income – Only the taxable profit from a business of the Taxpayer must be entered in this field.  If a loss was made, then the amount must be entered as a negative by typing the minus (-) sign before entering the amount.  If the loss is ring-fenced, then no amount must be entered.  Note the red dot next to “Business Income”.  When hovering the mouse over the dot, a note will be displayed that provides detail of how to enter an amount for the specific field.
  11. Other Income – Only the net taxable amount received must be entered in this field.  For example, if an amount was received from winning money in the lottery, such amount is not taxable and therefore must not be entered.  Note the red dot next to “Other Income”.  When hovering the mouse over the dot, a note will be displayed that provides detail of how to enter an amount for the specific field.

It is possible to enter amounts under income and then show applicable exemptions or deductions later in the tool, so the system calculates the taxable portion.  Make sure that you consider the circumstances and facts of the information.  Especially if a loss must be ring-fenced or not.

You can enter any amounts into any field, but consider whether such an amount constitutes remuneration or non-remuneration income.  This is critical for Retirement Fund Contribution deductions.

NEW:  The 2018-19 version now includes SARS Sources codes where applicable to assist when capturing information using an IRP5 or IT34 Assessment.

This section of the incomes is dealt with differently, depending on the marital regime of the Taxpayer.

The total amounts received for the year must be entered into the yellow fields.  The tool will then calculate the rest of the values based on the marital regime.

Special note for COP:  If the Taxpayer is married in community of property, then the sum of the income received by both spouses must be entered in each of the fields above.

  1. Rental income from property owned – Only enter the taxable profit from the rental income received for the year.  Same principles apply as for Business Income and Other Income explained earlier.
  2. Domestic Interest – Interest earned or accrued from a source within South Africa.
  3. Domestic Dividends – Dividends earned from a source within South Africa.
  4. Domestic Rental Income – Rental income earned from a source within South Africa.  This must not be confused with rental income earned from the property the Taxpayer owns.  This field refers to rental income earned from an investment portfolio, such as unit trusts.
  5. Rental income from property owned – Only enter the taxable profit from the rental income received for the year.  Same principles apply as for Business Income and Other Income explained earlier.
  6. Offshore Interest – Interest earned or accrued from a source outside South Africa.
  7. Offshore Dividends – Dividends earned from a source outside South Africa.
  8. Offshore Rental Income / All REITs – Rental income earned from a source outside South Africa.  This must not be confused with rental income earned from the property the Taxpayer owns.  This field refers to rental income earned from an investment portfolio, such as unit trusts.  Also, enter all amounts received from REITs in this field.
  9. Interest (Tax-Free Investments) – All interest earned in tax-free investments.
  10. Dividends (Tax-Free Investments) – All dividends earned in tax-free investments.
  11. REITs (Tax-Free Investments) – All income earned from REITs in tax-free investments.

If the Taxpayer has a company car benefit, then the details must be captured using the “Capture Company Car” button.  Up to 2 vehicles are catered for currently.  This is sometimes needed when a person changes cars during the tax year.  Click the button to go the “Company Car” screen:

  1. Does a maintenance plan exist? – Choose “Y” if it does or “N” if it doesn’t.
  2. Nr of months used – Enter the number of months in the tax year the Taxpayer used the specific company car.  This can be anything between 0 and 12.  When entering information for both vehicles, make sure that the total nr of months used is 12 or less.
  3. Car value (incl VAT) – The retail market value of the vehicle on the day the Taxpayer started using the company car.
  4. Odometer 1 Mar – The odometer reading on 1 March of the applicable tax year (first day of the tax year).
  5. Odometer 28 Feb – The odometer reading on 28 Feb of the applicable tax year (last day of the tax year).
  6. Business kms – Total kilometers traveled for business purposes according to the Taxpayer’s logbook or an estimate of business kms that will be traveled if the tool is used to estimate a tax liability.
  7. License Fees – Amount paid by the Taxpayer to license the vehicle and the company did not reimburse the Taxpayer.
  8. Maintenance – Amount paid by the Taxpayer to maintain or service the vehicle and the company did not reimburse the Taxpayer.
  9. Insurance – Amount paid by the Taxpayer to insure the vehicle and the company did not reimburse the Taxpayer.
  10. Fuel – Amount paid by the Taxpayer for fuel and the company did not reimburse the Taxpayer.

Once all the information is completed for one or both vehicles, the calculation will be complete.  

Click on the “Back” button to return to the “Personal Tax” screen.  The taxable portion of the company car fringe benefit will now be included in the gross income of the Taxpayer.

  1. Domestic Dividends – All dividends received from a source within South Africa will automatically be fully exempt.
  2. Domestic Interest – Local Interest Exemption is applied according to the age of the Taxpayer, up to the maximum amount allowed for by legislation.
  3. Foreign Dividends – The partial exemption is automatically calculated and applied against Offshore Dividends received for the tax year.
  4. Section 12T Tax-Free Investments – Full value of any income earned from Tax-Free Investments are exempt from tax.

These exemptions are locked down and cannot be overwritten or changed.

The following exemptions must be calculated manually by the user and entered into the relevant field:

  1. Sec 10A Voluntary Annuity – the capital portion of a voluntary annuity is exempt.  Such capital amounts are declared on the IRP5 received from the product provider or it can be calculated using the appropriate formula provided for in S10A of the Income Tax Act.
  2. Sec 10C Compulsory Annuity (Prev Disallowed Contr) – Contributions made to retirement funds that did not qualify for a deduction, can be used to exempt income received from a compulsory annuity that was bought with funds from a pension fund or retirement annuity fund (not from a provident fund currently).  The amount must be entered manually.
  3. Other exemptions – any other exemptions that may apply can be entered here.  Note the red dot to view additional information about this field.

If a deduction you want to claim, does not have a dedicated field in the tool, or the client wants to claim a loss that is not ring-fenced, then such amount(s) must be added together and be entered in the “Other Deductions / Losses” field.

In the Personal Tax screen, click on “Capture Home Office” button in the “Deductions” section.  This will open the “Home Office Expenses” capture screen.

  1. Costs related to property – complete all relevant costs that apply to the specific taxpayer.
  2. Home Office Area – complete the surface area for the office as well as the total surface area of the total buildings.
  3. Home Office Expense – the system will calculate the claim amount based on the information you captured.
  4. Click the “Back” button at the top of the screen to return to the Personal Tax screen.
  1. Travel Costs – this relates to the travel costs of taxpayers who work on commission or who owns a business in their personal capacity.  These taxpayers can only claim actual costs incurred when traveling for business purposes.  A logbook is still required to substantiate the claim.
  2. Travel Allowance – this is an allowance usually paid to a salaried employee to assist them with costs incurred when traveling for business is often required by the employer.  The allowance can be a fixed amount or reimbursive per kilometer traveled for business.  The taxpayer can either use the deemed cost table provided by SARS or the actual costs incurred.  Again, a logbook is mandatory.

In the Personal Tax screen, click the “Capture Travel Costs” button.  The “Travel Claim:  Commission and Business Only” screen will open.

The tool provides for 2 vehicles to be captured for the specific tax year where a taxpayer used more than 1 vehicle for business travel.

  1. Car Value (incl VAT) – the retail market value of the vehicle as at the date the vehicle was purchased, including VAT, but excluding any finance charges and fees.
  2. Opening Odometer Reading – odometer reading on the day the taxpayer started using the vehicle for the current tax year.
  3. Closing Odometer Reading – odometer reading on the last day the taxpayer used the vehicle for the current tax year.
  4. Business kms – the total kilometers travelled for business as per the taxpayer’s logbook.
  5. Vehicle Finance Charges – the total interest paid during the tax year if the vehicle was financed.
  6. Depreciation – the taxpayer may depreciate the vehicle over a maximum of 7 years and depreciation must be for the same period the client used the vehicle for business travel.
  7. License Fees – License fees paid.
  8. Maintenance – cost of all maintenance done on the vehicle, including tires.  This does not include the cost of a maintenance plan, as this would be included in the purchase price of the vehicle.
  9. Insurance – insurance paid for the vehicle in question.
  10. Fuel & Oil – total of all fuel and oil purchased.
  11. Travel Expense Vehicle 1 – this is the amount that can be claimed, based on the information captured for each vehicle.
  12. Final Travel Expense – the total claim for both vehicles combined.
  13. Click the “Back” button at the top of the screen to return to the Person Tax screen.

Note:  costs captured in number 5 to 10 above, must be the cost during the period the vehicle was used.  For instance, if the taxpayer used the vehicle for 6 months, then only the costs for those 6 months can be used.

Yes.

The tool determines the maximum allowable deduction that is allowed in line with legislation and applies the limit to determine the deduction that can be claimed (as well as deductions that are not being utilised).

  1. DC Retirement Fund Contributions (Pens & Prov) – Contributions paid by the Taxpayer to a defined contribution pension or provident fund.
  2. Retirement Annuity Contributions – Contributions paid by the Taxpayer to a Retirement Annuity Fund.
  3. Excess Rollover Contributions – Deemed RF Contr – accumulated contributions from previous tax years that did not rank for deduction previously and that can be claimed as deemed contributions in the current tax year.

Yes.

  1. Donations – Total amount of donations made by the Taxpayer to qualifying beneficiaries in line with s18A of the Income Tax Act.  The tool will apply the deduction limit if the amount exceeds the limit.

Click the “Capture Medical Aid” button to enter information related to medical aid and other qualifying expenses.

  1. Paid by you – Contributions paid by the Taxpayer.  This could be by debit order or code 4005 on an IRP5.  It excludes contributions paid by an Employer.
  2. Additional Qualifying Medical Expenses Incurred – Total qualifying medical expenses that were not paid for by the medical aid or reimbursed by insurance (gap cover).  The Income Tax Act is clear about which expenses qualify to be considered for additional tax credits.  Hover over the red dot to see the rules.
  3. Nr of dependents on medical aid each month – for each month of the tax year, indicate how many dependents (including the main member) were on the medical aid.  If the same nr of dependents were on the medical aid for the entire 12 months, enter the number in the first field and copy it across to the other months.  This will save a lot of time.  After completing the membership for month 1, click the “Fill” button to fill the rest of the months with the same number.  If membership differed during the year, then complete each month manually.

That is it.  Click the “Back” button to return to the “Personal Tax” screen.

Click the “Capture Capital Gains” button to enter the relevant information.

  1. Market Value (PV) – Proceeds received on the date of disposal.
  2. Base Cost – the Total base cost of the asset.  This must be calculated manually currently.  Base costs are provided for investments via an IT3(c) certificate issued by product providers when disposals occurred.  The base cost for other types of assets will have to be calculated.
  3. Specific Exclusion – Specific exclusions are automatically applied.  The tool will limit the exclusion to the gain if the gain is less than the exclusion.
  4. Capital Gain / Loss – The gain or loss will be calculated for each asset disposed of during the tax year.
  5. Description of Other Assets – you can now enter your own custom descriptions for other assets.
  6. LESS Spouse’s half if COP – if married in community of property, the gains or losses will be shared 50/50 automatically.
  7. LESS Previously Assessed Loss – you can now include assessed losses from previous tax years that carried forward.
  8. Taxable Gain @ 40% Inclusion Rate – the tool will calculate the final taxable capital gain that must be included in the Taxpayer’s taxable income and transfer the value to the “Personal Tax” tool automatically.

Click on the “Back” button to return to the “Personal Tax” tool.

Click on “Capture Travel Allowance” button to enter the information regarding any Travel Allowance or Reimbursive Travel Allowance that was received by the Taxpayer.

  1. Gross Travel Allowance per month – the fixed monthly travel allowance received by a Taxpayer.
  2. Nr of Months received – the number of months the fixed travel allowance amount was received.  If you have the full annual amount, enter that amount in 1. above and enter one (1) in the “Nr of months received” field.
  3. Car Value (Incl VAT) – purchase price as per the purchase agreement.
  4. Opening odometer kms – odometer reading (yellow field) on the day in 4. above.
  5. Closing odometer kms – odometer reading (yellow field) on the day in 6. above.
  6. Nr of days used – the number of days during the tax year that the vehicle was used for business travel.  Maximum 365 for a full year.  The combined total of Vehicle 1 and Vehicle 2 cannot exceed 365 and the system will warn the user accordingly.
  7. Business kms – business kilometers traveled during the dates indicated in 4. and 6. above as evidenced by a logbook or based on estimation if the tool is used for other purposes.
  8. Maintenance – “Y” if the employer paid the full cost of maintenance and the taxpayer did not pay for any maintenance, otherwise select “N”.
  9. Fuel – “Y” if the employer paid the full cost of fuel and the taxpayer did not pay for any fuel, otherwise select “N”.
  10. Reimbursive Travel Allowance p.a. – When employer reimburse the Taxpayer for business travel based on a per kilometer basis.  The tool will automatically determine if it is taxable or non-taxable.

NEW:  The system now also allows for actual costs to be claimed against a travel allowance.  Based on the information captured, the system will determine which method affords the taxpayer with the most favorable claim and will automatically apply the claim accordingly.

Click the “Back” button to return to the “Personal Tax” screen.

The tool calculates the total tax liability of the Taxpayer.  It is possible to offset tax that has already been paid to SARS during the year to determine if the client still owes an amount to SARS, if they are due a refund or if their tax is fully paid up.

  1. PAYE – total tax paid through the Pay as You Earn system.  These amounts can be found on an IRP5 or payslips.
  2. Provisional Tax Period 1 – first provisional tax payment by 31 August.
  3. Provisional Tax Period 2 – second provisional tax payment by 28 February.
  4. Provisional Tax Period 3 – third provisional tax payment by 30 September.

Only enter amounts that have in fact been paid.

The description will change based on the outcome of the calculation.

  1. Description will read “Tax Payable by You” when the Taxpayer still owes money to SARS or “Refund due to you” if the Taxpayer paid more tax during the year than what the final tax liability is.

  1. Net Effective Tax Rate – the “real” rate at which the client paid tax after all exemptions, deductions, rebates and credits were accounted for.  in the example above, the client paid R 154.60 for every R 1 000 earned during the tax year.
  2. Marginal Tax Rate – The highest percentage at which the last Rand of taxable income was taxed.  It basically means that every additional Rand of taxable income earned, will be taxed at 36%.

5. Retirement Fund Contributions Tool

Click the “Retirement Fund Contributions” button to launch the tool.

The tool will compare the tax saving for:

  • Current total contribution (including any employer contributions);
  • Maximum Allowable Deduction Contribution based on current information in the Personal Tax tool;
  • Any chosen contribution that the taxpayer would like to increase their existing contribution to.

The “Required increase in contribution” line indicates by how much a taxpayer needs to increase their total current contribution with.

6. Retirement Tax Tool

Click the “Retirement Lump Sum” button to launch the tool.

If the Taxpayer previously received lump sums from retirement funds and these lump sums were received or taken after the dates specified in the Income Tax Act, then such amounts must be entered here.  Exclude the new lump sum being received.

  1. All lump sums received due to the Taxpayer’s retirement on or after 1 October 2007.
  2. All lump sums received due to the Taxpayer’s resignation or voluntary retrenchment on or after 1 March 2009.
  3. All lump sums received due to the Taxpayer’s compulsory retrenchment or other qualifying events that led to the withdrawal on or after 1 March 2011.

The tool can handle up to 5 lump sums at different points in time.  This is great to estimate the impact over time if a staggered retirement strategy is considered.  This tool is appropriate in the event of retirement, severance and death.

  1. Lump Sum – the new lump sum being received.
  2. Prev Dis Allowed Contr – excess rollover contributions that did not previously qualify for tax deduction.
  3. Other tax free amounts – any other amounts allowed for in the Income Tax Act that can be deducted to reduce the taxable portion of the lump sum.
  4. Lump Sum Tax Payable – the amount of tax to be paid on the lump sum received.
  5. Nett Lump Sum – the cash amount the Taxpayer will receive after tax has been deducted.
  6. Effective Rate – the real net tax percentage that was paid on a specific lump sum.
  7. Compulsory Life Annuities Received – it is possible to offset (or to plan to offset) excess rollover contributions against compulsory annuities that originated from a pension or retirement annuity fund (not provident funds) in line with s10C.  Such annuity amounts can be entered here to reduce any excess rollover contributions that will be used in this regard.

7. Withdrawal Tax Tool

Click the “Withdrawal Lump Sum” button to launch the tool.

If the Taxpayer previously received lump sums from retirement funds and these lump sums were received or taken after the dates specified in the Income Tax Act, then such amounts must be entered here.  Exclude the new lump sum being received.

  1. All lump sums received due to the Taxpayer’s retirement on or after 1 October 2007.
  2. All lump sums received due to the Taxpayer’s resignation or voluntary retrenchment on or after 1 March 2009.
  3. All lump sums received due to the Taxpayer’s compulsory retrenchment or other qualifying events that led to the withdrawal on or after 1 March 2011.

The tool can handle up to 5 lump sums at different points in time.

  1. Lump Sum – the new lump sum being received.
  2. Prev Dis Allowed Contr – excess rollover contributions that did not previously qualify for tax deduction.
  3. Other tax free amounts – any other amounts allowed for in the Income Tax Act that can be deducted to reduce the taxable portion of the lump sum.
  4. Lump Sum Tax Payable – the amount of tax to be paid on the lump sum received.
  5. Nett Lump Sum – the cash amount the Taxpayer will receive after tax has been deducted.
  6. Effective Rate – the real net tax percentage that was paid on a specific lump sum.
  7. Compulsory Life Annuities Received – it is possible to offset (or to plan to offset) excess rollover contributions against compulsory annuities that originated from a pension or retirement annuity fund (not provident funds) in line with s10C.  Such annuity amounts can be entered here to reduce any excess rollover contributions that will be used in this regard.

8. CGT Investments

Click the “CGT Investments” button to launch the tool.

The tool can calculate up to 6 consecutive withdrawals from an investment.

  1. Initial Investment Amount – the initial once off investment amount
  2. Adhoc / Repayments – any additional amounts invested or repaid since the last withdrawal.  Can also include the total recurring contributions that were made since the start or last withdrawal.
  3. Withdrawal Amount – the amount being withdrawn from the investment.
  4. Investment Value – current investment value as at the date of the withdrawal.
  5. Base Cost of Withdrawal – the base cost applicable to the withdrawal
  6. Gross Gain / Loss – the gain or loss incurred on the withdrawal before the annual exclusion, previously assessed losses or inclusion rate.
  7. Base Cost Balance – the amount of base cost that can still be used for future withdrawals.

The base cost and withdrawal amount can be entered in the CGT capture screen that can be accessed from the Personal Tax screen if it is relevant for the current tax year.

9. Transfer Duty

Click the “Transfer Duty” button to launch the tool.

This is a simple tool to calculate the Transfer Duty amount for a given property value.

  1. Value of Property – enter the value of the property being transferred.
  2. Transfer Duty Payable – the Transfer Duty amount calculated according to the current tax year Transfer Duty table.

10. The reports

The Summary Tax Report is ideal for Tax Practitioners, Tax Consultants, Accountants and Bookkeepers who are only in need of doing quick calculations and generating a report to give to their client as a value add.

The summary report summarises the tax calculation of the client, the outcome of the calculations and the effective and marginal tax rates of the client.

The Full Tax Report includes the same information as the Summary Tax Report, but it provides additional invaluable information derived from the tax calculation.  This can be used to explore more planning and business opportunities with the client.

A high-level summary of the tax liability of the client, if the client owes tax, is due a refund or neither.  The effective and marginal tax rates are also provided and explained in an easy to understand manner.

To what extent the allowable deduction is uitilised and what the impact will be on both the current tax position and the future retirement position if the client were to make full use of the allowable deduction.

Using our unique algorithm, we estimate the real amount of income that will be lost to dependents and what is needed to replace it.  The report also asks additional questions that are relevant to this scenario to make the client aware as well as to provide a starting point for putting a strategy in place to solve any problems that may be faced in the event of untimely death.

Using our unique algorithm, we estimate the real amount of income that will be lost and what is needed to replace it.  The report also asks additional questions that are relevant to this scenario to make the client aware as well as to provide a starting point for putting a strategy in place to solve any problems that may be faced in the event of disability.

Using our unique algorithm, we estimate the real amount of income that will stop at retirement and what is needed to replace different levels of this income.  The report also asks additional questions that are relevant to this scenario to make the client aware as well as to provide a starting point for putting a strategy in place to solve any problems that are foreseen.

In the 2018-19 release, we added 3 more opportunities that may exist and that the taxpayer must be aware of.

The tool and reports are only providing information.  None of the numbers are construed as advice as defined in the FAIS Act or other relevant legislation.

Read the disclaimer and assumptions carefully and ensure that you are comfortable before presenting anything to your client.

Also, read in conjunction with the Disclaimer and Copyright notice when opening the tool.

We do not take any responsibility for any loss suffered by the user, their client or any other connected or related party.  It is the sole responsibility of the user to ensure correctness and appropriateness for all clients.

11. Printing and creating a PDF

No.

When clicking the “Print” button, the active screen will be printed.  If you would like to include the more detailed calculation with the report, go to the “Personal Tax” tool and hit “Print”.  You can attach the additional document to the report manually or in a PDF merge tool if you used a PDF Printer.

  1. Go to the tool, report or screen you would like to print by clicking the appropriate button.
  2. Click the “Print” button and follow the normal process you would when printing in any other application.

You can print to any printer that is configured on your computer, including PDF printers.  Note that you can easily create a PDF of any report, tool or screen in the application by using the “Export to PDF” button.

  1. Go to the tool, report or screen you would like to create a PDF for by clicking the appropriate button.
  2. Click the “Export to PDF” button.

  3. The screen, tool or report will immediately be published to a PDF file and automatically opened in Acrobat Reader if you have it installed (which you need to use this functionality).

  4. You can rename the file, save it in a different location, email it, send it via whatsapp… just like you can with any other PDF document.

Yes, you absolutely can.

12. I still need help

If you are still stuck, please get in touch with us.

Updates: SA CORONA VIRUS CENTRE