Do you know when to submit your valuation certificate to SARS?
It's important to have a valuation certificate for your company's assets. This helps you work out what profit you make when you dispose of an asset. This is key to calculating your Capital Gains Tax (CGT) correctly.
But it's not just important to have these certificates. You actually need to submit them to SARS.
If you don't know when to do this, it could land you with serious penalties.
To avoid this, read on and find out when you need to submit these certificates...
Here's when you must submit your valuation certificate to SARS?
If you had a valuation done, you don't have to submit it to SARS while you own the asset. You only need to have the valuation certificate for when you dispose of the asset.
You must keep the valuation certificate, including all supporting documentation, until the end of the year you dispose of the asset. You must submit a copy of the valuation to SARS together with your annual tax return for that year of assessment.
Remember: You must submit the valuation certificates of certain assets, such as those below, to SARS together with your first tax return. These are the three categories of assets you must submit valuation certificates with your first tax return:
But remember this important rule about your valuation certificates.
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One important rule to remember about your valuation certificates
You must get your valuation certificate from a registered valuation company. It'll work out your asset's value using its age, use and the market value of similar assets.
This ensures you get the accurate value for your assets. This will keep you out of trouble with SARS and guarantees you never pay more CGT
than you should. So get your valuation certificate today and submit it on time.
PS. Here are three instances where you don't have to pay Capital Gains Tax... And eight other ways to LEGALLY beat the taxman