FOURWAYS ACCOUNTANT

Mr. DOUGLAS FENN
Mr. Douglas Fenn
MEMBER SINCE 2009
Firm Fenns Incorporated
Suburb Fourways
Address Unit 8, The Straight, The Straight Road, Fourways, 2194
See Map
GPS -28.016799, 26.017446
Languages English, Afrikaans (in order of proficiency)
Email
Tel 08610 33667
Cel 083 741 2093
Fax 086 515 0641
Website www.fenns.co.za
Verified Professional Memberships
SAICA
IRBA
Qualifications
Chartered Accountant (SA)
Chartered Management Accountant (CIMA)
Bachelors degree at the University of South Africa in Accounting
Honours at the University of Stellenbosch
Professional Memberships
Independent Regulatory Board for Auditors (IRBA)
South African Institute of Chartered Accountants (SAICA)
Chartered Institute of Management Accountants (CIMA)
SERVICES
Financial Statements
Personal Tax
Business Tax
Auditing
Monthly Accounts
Payroll
Bookkeeping
Business Plans
Co. Registration

FOCUS

Providing Auditing, Accounting systems and Tax structuring to small & medium sized enteprises - prioritising professional and ethical principles

OTHER SERVICES

Strategy development, Financial director/CFO function, Board attendances, Valuations, Mergers & Acquisitions, Tax clearance certificates, Accounting systems evaluation, Cashflow projections, Internal auditing, payroll, monthly bookkeeping, Estate Planning, SARS Registrations, Company and CC amendments.

EXTENSIVE INDUSTRY EXPERIENCE

Small & Medium Sized Enterprises in diverse fields from Hospitals, Hotels, Car manufacturers and others.

EXPERIENCE

Douglas Fenn is a Chartered Accountant and has more than 18 years experience in auditing, accounting, taxation and financial management. 

ABOUT FIRM

Fenns Incorporated is a International accounting and audit firm built on principles of professionalism and integrity; committed to the sustainable evolution and development of our staff and clients.

We focus on giving our clients professional service and advice.

We have offices in Johannesburg, Cape Town, Mossel Bay/George, Port Elizabeth and Mauritius.

We are able to provide the following range of services:

Accounting Services
- Performance of general Accountancy work
Calculation of VAT and PAYE
Preparation of monthly budgets and reports
Setting up of accounting systems

Secretarial services
Closed corporation and Company registrations
- Alterations to statutory information at the Registrar

Auditing
Performing the auditing function
- Internal audit procedures and system assessments

Income Tax
Registration for income tax and provisional tax
- Completion and submission of income tax returns
- Income tax consultations and estate planning

BUSINESS PRACTICES
Average Hourly Fees R300 - R500
Please note that this is an indicative rate and may vary according to task. Please request a quote for exact amounts.
Software Supported Pastel, Quickbooks, VIP Payroll, Most accounting packages, Caseware
Number of staff 21 - 50
LATEST NEWS AND VIEWS

UNDERSTANDING TAXATION OF FOREIGN EMPLOYMENT INCOME AND EXEMPTIONS

Under the Income Tax Act, No 58 of 1962, referred to subsequently as the ‘Income Tax Act’, all South African residents are taxed on their income regardless of where in the world they may be earning that income, subject to certain exemptions. One such exemption is the exemption from income tax on Foreign Employment income (Section 10 1(o) ii of the Act). On 1 March 2020 new provisions were made to this exemption and  there has been some confusion regarding the exact ambit of these particular provisions of the Income Tax Act. In this article, we will highlight the most important aspects of the foreign employment tax exemption and try to shed clarity on these intricate tax laws.

Below are the most important points to bear in mind regarding the foreign tax exemption.

The basic criteria

  1. As this exemption applies only to foreign employment income, you need to fit the definition of ‘employed’. If, contractually, you are an independent contractor, you may fall foul of the criteria entitling you to the exemption. When dealing with your tax returns as someone seeking a foreign tax exemption, the wording of your employment contract is one of the first things that must be checked. 
  2. The Section 10 Act Income tax exemption has nothing to do with the residential status, nationality or citizenship of your employer. Your employer need not be South African and can be foreign.
  3. Even if you qualify for the foreign tax exemption, you may still be taxed on any employment income above R1 250 000. This is because the exemption amount effective from 1 March 2020 is capped at R1 250 000 per annum. The good news though is that you will still qualify for normal tax deductions such as for retirement annuities, medical aid and any usual rebates under our tax laws. This should always be kept in mind when doing your tax planning.

Clarifying important issues on the requirement to be out of the country
One of the important aspects of qualifying for the exemption which may seem self-evident but is worth clearing up, is that you must spend the required number of days out of the country.

Under the Income Tax Act, your ‘days out of the Republic of SA’ need to amount to 183 days or more over any 12-month period. We recommend that you therefore work abroad for 184 days, to be safe.

During this 12-month period, you must spend more than 60 consecutive full days overseas. Once again, we recommend making this 61 days to ensure compliance. As for ‘full days’, they exclude the day you arrive and depart in SA.
 
What about leave? Can you be on leave or holiday during the consecutive 60-day period required? Yes, it is allowed, but strictly only if it falls within a period of employment – and not between employment periods – and these leave or holiday days also fall within your allowable days of leave as stipulated in your employment contract.

What if you’re working overseas, but not on land?
If you’re boat-bound as part of a shipping crew, you may well yet qualify for the Section 10 1(o) i full exemption of income which is not necessarily limited to the R1,250,000 income threshold. The requirements here though are slightly nuanced, so make sure to speak to a skilled tax advisor.

Avoid SARS snags
You should also register for provisional tax and submit realistic estimates of taxes due, to avoid unnecessary penalties and interest from SARS. In our experience, many expats and taxpayers qualifying for the income tax exemption were not registered for provisional taxes from 1 March 2020. As a result, they may face penalties and interest due to under-estimating their tax due. 

If you fall into this category, contact one of our tax specialists to help you request a reduction of your SARS penalty. Our friendly team of chartered accountants and tax specialists at Fenns Incorporated would be happy to assist with the wavering of penalties as well as tax return submissions. 

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5 REASONS TO OUTSOURCE YOUR ACCOUNTS DEPARTMENT

Whether you’re a small business or large corporation, you need efficient accounting services to remain compliant with tax laws, correct bookkeeping, and other regulations. The big question is, how do you get the best quality service while at the same time keep costs down? Outsourcing your accounts department to professionals can provide significant benefits for your company. 

1. Save Money & Reduce Overhead 

According to a recent estimate, outsourcing your accounting work can reduce your business cost by as much as 40%. An outsourced team will eliminate expenses related to training, employee benefits,  accounting software, hardware, and office supplies. With an outsourced accounts department, you determine the number of hours in a week and don’t need to pay a full-time employee for hours not worked. 

2. Access to Expert Accounting Resources 

By outsourcing your accounts department you’ll get access to the best of the best, without having to take on a massive full-time salary. Many in-house accountants (particularly in small businesses) may have a background in accounting but are not master accountants. Having a dedicated team of highly qualified and experienced experts at your disposal ensures that your books are always up to date, and you’re not at risk for penalties due to late payments or inaccurate paperwork. A provider also has access to the latest accounting software and the know-how to use it properly. 

Another benefit is that a team typically has a wide range of services, which means you don’t need to hire additional personnel. For example, Fenns Incorporated offers the following financial services: 

  • Accounting and monthly bookkeeping services
  • Tax services
  • Financial accounting 
  • Audit of annual financial statements 
  • Advisory services

3. More Flexibility 

Although you may have the funds to afford a full-time accounts team, there is always the risk you could lose a big customer or the economy takes a dive, causing you to scale back on costs quickly. By outsourcing, you can build flexibility and scalability into your business in times of growth without committing to a full-time employee. There are also typically no upfront placement fees and lengthy contracts with an outsourced team. Should you decide to cancel the contract you won’t have to worry about dealing with issues you typically would with a full-time employee such as unfair dismissals, retrenchments and CCMA battles.  This helps your business to adapt more quickly to rising or slowing demand of the economy. 

4. Reduce Risk 

It can be challenging to enforce a strong checks and balances system without making your employees feel that you don’t trust them, which can lead to reduced company morale. With an outsourced team you have the benefits of a third party to audit your money trail. Your risk of internal fraud will be decreased by having an impartial standard of checks and balances, and this also helps improve compliance. 

5. Save Time 

Time is the most valuable resource you have. Having a provider to manage your accounting means you can spend less time overseeing financial matters and more time focusing on business goals, development, growth, and doing what you do best – running your business. 

The Bottom Line 

The bottom line here is that by hiring an outsourced accounting service provider, you save money, time, and stress by having experts handle your financial reporting, leaving you free to spend precious time on running your business. 

If you are thinking of restructuring your business to reduce costs and increase efficiency, take a look at the financial and accounting services we offer, and contact Fenns Incorporated today for a free quote.

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