South Africa Sole Proprietor — ITR12 & IRP6 Return

Confirm the client is a South African tax resident (ordinarily resident or physical presence test) and a sole proprietor — not a company, CC, or trust. Identify the tax year (1 March to 28 February), whether they are a provisional taxpayer, and whether any refusal-catalogue triggers apply (foreign income, capital gains, company/trust structure). Establish client age, as it determines rebates and the interest exemption threshold.

Retrieve the client's IRP6 payment history for the tax year: first payment (due 31 August — 50% of estimated liability) and second payment (due last day of February — top-up to 100%). Check whether a voluntary third payment was made by 30 September. Compute whether any underestimation penalty applies: 20% penalty if provisional tax paid is less than 90% of actual liability for income under R1 million (80% threshold for income over R1 million).

Process the client's bank statements (FNB, Standard Bank, Nedbank, Absa, Capitec, Investec, Discovery Bank, TymeBank) for the full tax year (1 March to 28 February). Classify each transaction as Revenue, Deductible Expense, Wear-and-Tear (s11(e)), RA Contribution (s11F), Medical Aid (s6A credit), or Exclude (provisional tax payments, internal transfers, drawings). Flag entertainment expenditure as non-deductible under s23(m) and identify any items requiring logbook evidence.

Apply all available deductions and credits in the correct sequence. Compute the s11F retirement annuity deduction (27.5% of the greater of remuneration or taxable income, capped at R350,000; excess carried forward). Assess home office deductibility under IN 28 (dedicated room, regular and exclusive use only). Calculate s6A medical tax credits (R364/month for main member plus first dependant; R246/month for additional dependants). Evaluate s6B additional medical expense deductions for clients aged 65+ or with a disability. Check interest income against the exemption (R23,800 under 65; R34,500 for 65+).

Where gross turnover is below R1 million and the client does not provide professional services, evaluate whether the Sixth Schedule Turnover Tax regime is more favourable than normal income tax. Under Turnover Tax, income tax, CGT, dividends tax, and VAT are replaced by a single levy on turnover (no normal deductions allowed). Present both computations and recommend the better option. Note that the election must be made before the start of the tax year and is binding for three years.

Assemble the full ITR12 computation: gross income, allowable deductions, taxable income, progressive tax at applicable rate table, less primary/secondary/tertiary rebates (s6), less s6A medical tax credits, less provisional tax already paid (IRP6). Produce the net tax payable or refund due. Review all figures against source documents before eFiling. Where a refund is due, confirm bank details on the SARS eFiling profile are current to avoid delays.

Submit the completed ITR12 via SARS eFiling (www.sarsefiling.co.za). Retrieve the auto-assessment or SARS-issued IT34 (Notice of Assessment) once processed. Reconcile the IT34 figures against the submitted return. If SARS issues a Request for Supporting Documents (RSD), prepare the supporting evidence package (logbook, invoices, RA certificate, medical aid statements) for upload. Advise on the 30-day objection window (NOO — Notice of Objection) if the IT34 differs materially from the computed liability.