Donations Tax

What is Donations Tax? Donations tax is a tax that is payable at a flat rate on the value of property disposed of by a donation. Donations tax is calculated at flat a rate of 20% on the value of the property donated. A donation includes property disposed of for an inadequate consideration. Exemptions Please read sections 54 to 64 of the Income Tax Act, 196 for a whole list of exemptions from donations tax. Annual exemptions A donation will be exempt if the total…

Read More »

Excise Duties and Levies

What is Excise Duties and Levies? Excise duties and levies are imposed mostly on high-volume daily consumable products as well as certain non-essential or luxury items. The goal of these duties and levies is to ensure a constant stream of revenue for the State. It also serves a secondary function is to discourage consumption of certain harmful products such as alcohol. The revenue generated by these duties and levies amount to approximately ten per cent of the total revenue received by SARS. Who is entitled…

Read More »

Do you have to submit a tax return?

Depending on your age and how much income or money you have earned in the year you may or may not have to submit a tax return. So, do you have to submit a tax return? If you are under the age of 65 and you earn MORE than R67 111  between 1 March 2013 and 28 February 2014 – YES you have to submit a tax return – Your Primary Tax Rebate is: R12 080 If you are under the age of 65 and…

Read More »

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…

Read More »

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,…

Read More »

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…

Read More »

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…

Read More »

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…

Read More »

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…

Read More »