What's new?

The format of the new ITR12 form was revealed on SARS eFiling web site on 1st July 2010. The ITR12 Report added to WinTax2010 on 11th July 2010

Tuition movie lecture, explaining the calculations for medical claims in the 2010 tax year, released on a DVD on 22nd May 2010.

After 20 years of sales and free updates, the IBCFIN and FirstFin Pro programs were discontinued on 14th April 2010. These programs have been replaced by a new program called SoftFin. IBCFIN and FirstFin Pro enjoyed great success with users enjoying free updates and support for the past 20 years but it became increasingly difficult to add improvements and extra features, requested by users, to a program which used old programming technology. IBCFIN and FirstFin Pro will no longer be supported and no new updates will be issued for IBCFIN or FirstFin Pro. If you are an IBCFIN or FirstFin Pro user then contact Softbyte Computers regarding and upgrade to SoftFin - possibly at a reduced price.

WinTax2011 and BackTax2011 updated 11/03/2010 to suite SARS's new method of calculating taxable income with regard to contributions made to medical aid funds. Although, when first reading the new legislation, it may appear that the entire amount of any medical aid contributions paid by the employer i.r.o the employee is taxable at salary source, but this not so. The employer may still deduct the capped amount from from the employer's contributions when determining tax to be deducted from remuneration at salary source (just as before). The difference comes in on the IRP5 where the code 3810 amount on the IRP5 will equal the code 4474 amount. The code 4005 amount will still equal the code 3810 plus any contributions paid by the taxpayer.

Because the full amount of the employer's contributions is now added to taxable income when you do the end-of-year asessment, the taxable income will effectively be increased by the capped amount (compared to last year). All taxpayers will now be granted the capped amount, but not exceeding the total contributions, as a deduction on their assessment in 2011.

In 2010 the code 3810 amount on the IRP5, and added to taxable income, was the employer's code 4474 contributions less the capped amount.
In 2011 the code 3810 amount on the IRP5, and added to taxable income, is the same amount as the employer's code 4474 amount.
In 2011 the taxpayer will be granted his capped amount (but not exceeding total contributions) as a deduction on his assessment.

This new method of calculating taxable income in 2011 is "tax neutral" to both employers and employees.

WinTax2011 and BackTax2011 software issued 21st February 2010 - 3 days after the budget speech.

The Department of Labour has annouced that the salary limit for the calculation of UIF contributions will be raised from R11,662 per month to R12,478 per month with effect from 1st October 2007. Click here for the official notice.