questions & answers
What is componentisation of fixed assets?
Componentisation is splitting of an asset into different components based on the expected life or maintenance. For example the body of boat and the motor have different expected life’s cycles. The motor could be replaced with a new one and then the old engine will be written off or sold as a component. A new engine will be acquired without impacting on the expected life of the body and have a life expectancy of its own.
Why do I have to register for PAYE? Can't I just pay provisional tax?
Employers (even if only one employee) have to register for PAYE and deduct it monthly from employees’ salaries to be paid over to SARS. Provisional tax is aimed at non-salary income such as rent and interest.
We are expected to wear corporate clothing at work. Is the cost of the clothing deductible for income tax?
Personal use items are normally not tax-deductible. The cost of clothing can therefore not be deducted in your personal income tax return.