Category Archives: Tax

Dividends Tax

What is dividends tax? Dividends Tax is a tax charged at 15% on shareholders when dividends are paid to them. Under normal circumstances, it is withheld from their dividend payment by a withholding agent. A dividend is explained in section 1 of the Act.  In short it means that any payment by a company for the benefit of a shareholder in the respect that a share is owned in that company. Dividends Tax is applicable on the payment of a dividend if the company is…

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Africa Tax: Dwindling revenues means increased diligence from authorities

A shrinking revenue base is top of mind for tax authorities in Africa as much as it is for their counterparts the world over. The upshot for businesses is that they can expect a more rigorous pursuit of tax revenues from governments, substantiating the need for sound advice and assurance for full compliance with relevant legislation in every territory in which they operate. We have these conferences to better serve clients by connecting them with our teams across Africa; since taxation is a dynamic activity,…

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Directors PAYE

DIRECTOR – MEMBER Any member of a Close Corporation who holds any office or performs functions similar to the office or functions of a director of a company is also considered to be a director for the purposes of the Income Tax Act. PAYE As from 1 March 2002 private companies and close corporations will be required to deduct and pay over to SARS PAYE in respect of remuneration paid to their directors . The amount of PAYE is determined on a notional amount based…

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Are you a resident in South Africa for tax purposes?

CHANGE OF TAX SYSTEM The income tax system in South Africa changed from a source-based system of taxation to a residents-based basis of taxation with effect from years of assessment commencing on or after 1 January 2001. The effect of this change in the tax system is that South African residents are but for certain exclusion and exemptions subject to income tax on a very world-wide income that is income derived within and outside South Africa. Non-resident individuals will remain taxable on their South African…

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Capital gains tax

Capital Gains Tax (CGT) EFFECTIVE DATE The proposed effective date for the implementation of Capital Gains Tax (CGT) is 1 October 2001 CGT APPLIES TO a residents worldwide assets a non-residents immovable property or assets of a permanent establishment in the Republic DISPOSALS CGT is triggered on disposals of an asset Important disposals include A donation Abandonment scrapping loss etc Vesting of an interest in an asset of a trust in the beneficiary Distribution of an asset by a company to a shareholder Granting of…

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Beskou die keiser jou as n boer

Deur HA Coetzee GR(SA) H Dip Belastingreg MCom DCompt voormalige hoogleraar by RAU Synopsis The Receiver of Revenue has tried unsuccessfully to add an objective factor to the interpretation of a farmer for the purposes of the Income Tax Act (the Act). His reasoning was that farming like any other venture must have a prospect of realising a profit. Over the past seventy years though our courts have consistently ruled that the test whether a person is a farmer for the purposes of the Act…

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