Category Archives: Tax

SARS extends opening hours for tax season deadlines

Taxpayers worrying about the tax season deadline drawing  ever closer can breathe a sigh of relief, after SARS (South African Revenue Service) announced on Wednesday that it would extends its operating hours for the next two weekends. “The SARS branch offices will extend working days to Saturdays for the next two weekends – 14 and 21 November – in anticipation of an increase in number of taxpayers who will file their returns,” said SARS spokesperson Sandile Memela on Wednesday. Ahead of the November 27 tax…

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Employment Tax Incentive helping but needs work

Employment Tax Incentive helping but needs work

South Africa’s Employment Tax Incentive (ETI) needs some work if it is to serve as a strong weapon in the fight against youth unemployment, says Rob Cooper, tax and legislation expert at Sage HR & Payroll. Formerly known as the “youth wage subsidy”, the legislation was introduced in early 2014 to encourage employers between the ages of 18 and 30, with the government subsidizing half the wage bill. The National Treasury states that, in the period from 1 January 2014 to the end of February…

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Africa asked to introduce eco taxes, UN

Africa asked to introduce eco taxes, UN

The United Nations has release a new report, Africa’s Adaptation Gap. This recommends that African countries begin to introduce environmental levies in order to contribute to global climate change efforts. This particular report was released at the 15yh African Ministerial Conference on the Environment. It follows in the footsteps of the UN Environmental Program’s Global Adaptation Gap Report 2014. It found that the cost of introducing the changes needed in developing countries in order to reduce emissions, could be as high as US$ 360 to…

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Securities Transfer Tax

Securities Transfer Tax

What is securities transfer tax? Security transfer tax is levied on every transfer of a security . It was implemented from 1 July 2007 under the Securities Transfer Tax Act, No.25 of 2007 and the Securities Transfer Tax Administration Act, No.26 of 2007. A security means any share or depository receipt in a company, or member’s interest in a close corporation. What exactly is securities transfer tax levied on? Every transfer of any security that is issued by a CC or a company incorporated within…

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Tax Rates 2015

Tax Rates 2015

On Wednesday, 25 February 2015, South Africans were told to prepare for higher taxes. The government’s annual budget indicated a 1% increase in personal income tax. Tax Rates for 2015 is as follows: Personal Tax Taxable Income Tax Payable R0 – R181 900 18% of each R1 taxable income R181 901 – R284 100 R32 742 + 26% of taxable income above R181 900 R284 101 – R393 200 R59 314 + 31% of taxable income above R284 100 R393 201 – R550 100 R93…

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Tax and starting work

Here is a small, simple but effective guide to how much tax you will have to pay and when exactly. Some explanations will also be given How much tax should I pay? You pay tax when your income is above the agreed amount per year and you pay all of your working life up to the age of 65. This tax is determined by SARS. When do I pay Tax work in tax years. The year starts at 1 March and end on 28 February…

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Who is really liable for PAYE?

Who is really liable for PAYE: Synopsis A recently reported tax case highlights the importance to employers to deduct PAYE from the correct amount of remuneration, as defined in the Income Tax Act, paid to employees. At the end of the day the liability for the payment of PAYE rests with the employee. The employer is only required to withhold the tax and to remit it to SARS on behalf of the employee. The employee may very well be at risk if the employer deducts…

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Value added tax (VAT)

Value Added Tax (VAT) was introduced on 30 September 1991 at 10% and increased to 14%  on 7 April 1993. The VAT system comprises three types of supply Standard-rated supplies – supplies of goods and services subject to the VAT rate in force at the time of supply Exempt supplies – – supplies of goods and services subject to the VAT rate in force at the time of supply Zero-rated supplies – supplies of certain goods or services subject to VAT at zero percent. The…

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What is my tax number?

Where is my tax number? If you are thinking about your tax number, you may be busy completing your e-filing or tax return? Your tax number should be printed on your tax return already! But if you need your tax number for correspondence or to provide to your tax consultant, tax practitioner,  financial consultant or any one of the other hundreds of reasons, you can start looking for your tax number on your payslip or on your IRP5 issued by your employer. You can also…

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The capital gains tax consequences of resident trusts

INTRODUCTION When one considers creating a trust regard must be had not only to the reason why a trust is chosen as a vehicle as apposed to a partnership company or close corporation but also to the provisions relating to capital gains tax income tax donations tax value added tax (VAT) estate duty and transfer duty. The introduction of Capital Gains Tax (CGT) on 1 October 2001 complicated the use of trusts from a fiscal point of view. The following issues are discussed in this…

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