Services

Trusts:

Why do you need a trust?

• Security
• You distance yourself from assets as it becomes the trust assets.
• Protect yourself against creditors
• You cannot be held liable for assets in the trust name in your personal capacity. It is the responsibility of all the trustees.
• To build an empire
• Family Trust, Investment Trust
• Protect your children and family
• your family and children can be beneficiaries and receive benefits from the Trust.
• Wills
• Your will cannot dictate the trust, all trustees decide together, your will must however be valid for a testimonial trust
• Tax Benefits
• Trust is taxed differently from your personal tax
• Types of trusts:
• Inter vivos - Between living persons
  Testimonial trust – are derived from a valid will
  Special trust – Non profitable, on behalf of disabled persons


• No audit required if not stipulated in the trust deed

Last will and Testaments:

• Do you need one?
• If you do not have a will, the state will decide how to handle your estate and that may be that it is not to your loved ones benefit.
• Structuring of estate duty
• Do you sufficient life policies
• What will happen to your children
• It is important to name guardians for your children if they are under aged, and to discuss this with the people you choose, so that they will not become wards of the state if you should die.
• Usufruct benefits
• Make sure your spouse do not leave your assets to his/her new beloved spouse
• Executors to use
• It can be beneficial to use a independent executor, which have no emotional ties to the family, in order to assist with the process.
• Your last say in life!
• Everyone must have one on file
• If no will is in place the court may decide if your money in estate should be used or invested for children, or who should inherit.

Companies:

• New Companies act
• The New Companies act 71 of 2008 will be implemented from 1/5/2011 and will have relevance on the 2012 tax year.
• Duties of Directors
• Directors will have more responsibilities and should be informed about their duties
• Who can be the accountant
• Persons registered at Accounting/Auditing boards with valid registration Certificates / Numbers.
• Public Score
• 1 point for the average number of employees during financial year.
  1 point for each share holder
  1 point for each million rand turnover during the financial year
  1 point for each million 3rd party liabilities at year end


• How to compile financials
• Accounting professionals should be informed with newest procedures and processes in order to compile your financials.
• Do you need an audit or review?
• The Public scoring system dictates who should be audited or reviewed.
  
  Audit
  Non owner management companies
  - Should be reviewed points under 350
  - Should be audited points over 350
  
  Owner Managed companies
  - This means the shareholder is the director of the company
  - Less than 100 points – Compile financials
  - Points between 100 and 350 – Reviewed
  - Points over 350 – Need to by Audited by person Registered by IRBA






 
• Share certificates
• Done internally
• Change of directors
• COR39 to be completed and 21 days notice given. These changes should also reflect on the Minutes of the Meeting held by directors, when the decisions were made.
• Directors surety
• When a directors sign surety for example on credit applications, he will be responsible for the debt in his personal capacity, should the company fail to pay.

PAYE:

• Who must be registered
• All companies or sole proprietors who employ employees
• Deduct correct Paye
• Make sure you know the SARS systems and formulas for deductions. All employees over threshold must pay PAYE. This includes South-African citizens and foreigners.
• Payroll systems to use
• It is always better to make use of a payroll system, which is SARS compliant with the ability to import tax tables and to export for IRP5/IT3 certificates
• Payslips
• Companies must supply employees with payslips and IRP5/IT3 certificates.

UIF:

• Do regular updates
• UI-19 forms must be completed when changes in personnel occur.
• Law
• UIF must be deducted from all employees except for Commission earners. 1% should be deducted from employee; the employer is liable for 1% so 2% must be paid over to SARS. The threshold for UIF: for all employees earning R12474.00 or more there can only be deducted R124.74
• Website: labour.co.za
• Foreigners: do they have to pay uif?
• Yes, all employees should pay as explained above. You need their passport, date of birth and country of origin.

SDL:

• When to start paying
• Employers are liable to start to pay over a 1% levy to SARS when their total payroll is over R50 000.00 per month or R500 000.00 per year. This levy is calculated on all types of salaries paid.
• Benefits
• When the employer pays for courses to improve his employees ability to do their work, the employer can claim back from SARS.

SARS Audits:

Always keep records for 5 years for all types of taxes. SARS may conduct an audit at any time and require lots of different information to support your returns.

• Tax
• Documents include: Invoices, supplier invoices, financial statements
• Vat
• Invoices with VAT nr, correct company name, where amounts before and after vat is calculated
• Paye
• Payslips and employment contracts for all employees, EMP201 and proof of payments made to SARS, EMP501 and IRP5/IT3A certificates generated by easyfile.
• Other

Workman’s Compensation:

• Registrations
• There are categories with the Compensation Commissioner and a yearly levy is charged depending on your category and Return of Earnings submission.
• Benefits
• Injuries at work are covered if an injury occur. Letters of Good Standing can be obtained to improve your chance to successfully content for a contact.
• Law required
• The law requires that employers should be registered by the Commissioner
• How to claim
• Different forms are available for different types of injuries in the categories. Doctors must assess situation and complete forms for submission at your local labour department,
• When to claim
• If you are not able to do your job properly or you are disabled because of your injury

Individual tax:

Personal income tax is your responsibility to submit to SARS. This can be a very complicated matter, make sure you know:

• How to structure the IRP 5 for your benefit
• What to keep to complete your tax returns:
  - Logbooks
  – Vehicle purchase agreements
  – Cellphone accounts
  – Computer purchases
  – Text book purchases
  – Medical expenses
  - Bank statements
  – Income certificates
  – Receipts for Section 18A donations
  - IT 3(a) and (b) IRP 5 and other tax related certificates

International Financial Reporting Standards

Tax clearance:

Why do you need one?

• Vendor listings
• Tenders
• Immigration
• Sale of business

Valuations of business:

• Sale of business
• Valuation of shares
• Merging

Management financial statements:

• Cash flow projections
• Income statements
• Balance sheets
• Income certificates

CIPC annual Returns:

• Yearly returns
• Amendments
• Safekeeping of documents

Bee Certificates:

BEE certificates may be required by your suppliers or if you tender for contracts. There are different categories depending on your company’s turnover and black ownership. - Yearly renewals - Applications with SANSA accredited vendor - Small business Bee Certificates

Registrations:

Documents needed: All relevant forms are available on SARS website, or at our offices

• VAT
• Original proof of banking details; Original proof of residence for company and director; Directors ID; Certificate of incorporation; 3 months bank statements, Invoices issued for R50 000.00
• PAYE
• Original proof of banking details; Original proof of residence for company and director; Directors ID; Certificate of incorporation
• UIF
• Proof of residence for company and director; Banking details; Directors ID; Certificate of incorporation. Copies of all employees ID and gross salaries to complete UI-19
• WORKMANS COMPENSATION
• Proof of residence for company and director Banking details; Directors ID; Certificate of incorporation; summary of expected salaries and directors numerations to be paid.
• CIPC
• Color copies of ID documents, signature on original completed forms, addresses; telephone numbers etc.
• IMPORT and EXPORT certificates
• Original proof of banking details; Original proof of residence for company and director; Directors ID; Certificate of incorporation. Proof of registration for VAT, Income Tax, PAYE, UIF and SDL; Agency contract between agent and foreign principal; telephone account to confirm contact details
• CIDB
• Certified ID copies of directors; Valid tax clearance certificate; proof of payment per class applied for; bill of quantity per class applied for; Certificate of incorporation; financial statements; any other documents specified by guide or application for.
• Other

 

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