By Zuko Komisa
In this tough economy with high food prices and rising fuel prices, many South Africans have gravitated to having side hustles.
According to the results of this year’s Old Mutual Savings and Investment Monitor, one in five South Africans who live in cities have a side business in addition to their day job.
The big question then becomes, how do you make sure you are tax compliant?
Momentum and Unisa’s Household Index from 2021 revealed that the majority of South Africans with side jobs make between R12 000 and R250 000 per month, significantly above the tax threshold (about R7 600 a month or R91 250 a year if you are under the age of 65).
Also Read: South African teens are skipping school to chase risky cryptocurrency dreams
Kaya Biz with Gugulethu Mfuphi spoke to Jashwin Baijoo, Legal Manager of Africa Tax and Compliance about what the law says about side hustles and taxes.
LISTEN TO THE FULL CONVERSATION HERE:
Baijoo, shared how there’s a growing number of individuals pursuing side hustles.
“In recent times we’ve recently had an uptake of side hustle, especially with individuals between the age of 18 and 35, and now we’ve seen is individuals now dabbling in cryptocurrencies. “
“The reason I am saying this is that based on market volatility, you can make a sizable amount of money in a very short space of time.”
He also mentioned how individuals need to find ways to be compliant.
“What people don’t realise is that even on your side hustle, even though you are not getting your IRP5 from your employer, you are doing it by yourself. In these instances, you are still liable for tax, on that additional income earned and this is at your marginal tax rate.” says Baijoo,
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