Interest as a deduction

In a recently published Special Board decision the Commissioners practice note was challenged. Practice note number 31 reads as follows To qualify as a deduction in terms of section 11(a) of the Income Tax Act ( the Act ) expenditure must be incurred in the carrying on of any trade as defined in section 1 …

Independent Subcontractors and PAYE

Independent Subcontractors and PAYE. The Building Industries Federation of South Africa has a standard contract for subcontracts. This standard contract contains the following clauses: The contractor shall pay to the subcontractor the sum or sums and at the interval agreed upon for work properly done. When payments are made periodically the amount shall be determined …

Foreign travel allowance limits per calender year

Individuals The total amount of foreign exchange which may be availed of by South African residents with regard to traveling expenses during a calender year in respect of one or more visits outside the Common Monetary Area Foreign Exchange Control Applicable to South African citizens and South African residents are as follows for 2013/14: Residents …

Import duty & taxes when importing

Import duty and taxes are charged when goods are imported into South Africa By a private individual, company or major corporation.  The valuation method is FOB (Free on Board), which means that the import duty and taxes payable are calculated exclusively on the value of the imported goods.  However, some duties are based part in …

Individual Income Tax Rates for 2013-2014

Individual Income Tax Rates for 2013-2014 Individual Income Tax Rates in South African Rands for the period 1 March 2013 to 28 February 2014 are as follows: R0 – R165 600 @18% of taxable income R165 601 – R258 750 @R29 808 + 25% of taxable income above 165 600 R258 751 – R358 110 …

Estate Duty

What is Estate Duty? Estate Duty is charged on every person who dies after 1 April 1995, according to the Estate Duty Act of 1995. It is charged at about 20% of on the taxable amount if the estate is valued at an amount exceeding R3 500 000. Who is responsible for Estate Duty? The …

Estate planning

1 Introduction Estate planning may be defined as the arrangement management and disposition of the assets in a persons estate so that he his family and other beneficiaries may enjoy and continue to enjoy the maximum from such assets during his lifetime and after his death no matter when death may occur. Why does an …

Double taxation agreements

International Tax There is a number of Double Taxation Agreements (DTA) in existence between South Africa and various countries that provide for relief in respect of royalties and know-how withholding taxes. There is no withholding tax on dividends or interest flowing out of South Africa. The withholding tax on royalties paid from South Africa is …

Air passenger tax

What is air passenger tax? Air passenger tax came into effect in 2000 when the Minister of Finance announced that an Air Passenger Tax (APT) was to be instituted. The tax was to be levied on “chargeable passengers on chargeable aircraft departing from an airport in the Republic to a destination outside the Republic.” This …

Corporate Income Tax

What is Corporate Income Tax? Corporate Income Tax (CIT) is also known as a business tax. It is a tax imposed on businesses incorporated under the laws of the Republic of South Africa and which derive income from within the Republic or through a branch or permanent establishment within the Republic. What kind of businesses …