PAYE and non-residents
Employment income is generally taxed where the services are physically exercised. The place of contract conclusion, where the employer is based and where the remuneration is paid is irrelevant in determining the taxation of employment income. This principle is supported by South African legislation and case law. Income earned from South African employers for services […]
ADMIN PENALTIES FOR OUTSTANDING CORPORATE INCOME TAX RETURNS
In general, all registered companies must submit corporate income tax (“CIT”) returns within 12 months of the end of the company’s financial year-end. This is applicable to all companies that are resident in South Africa, that receive source income in South Africa, or that maintain a permanent establishment or a branch in South Africa. On […]
Verskillende rentekoerse in belasting
Die Inkomstebelastingwet[1] bevat definisies vir verskillende rentekoerse. Hierdie rentekoerse dien as die basis vir renteberekeninge in inkomstebelasting in verskillende omstandighede en kan breedweg in drie hoofareas gekategoriseer word. Kennis van die verskil tussen hierdie onderskeie tipes rentekoerse kan ’n wesenlike impak hê op die bedrag rente wat deur belastingbetalers verskuldig of ontvangbaar is, asook die […]
TAX ALLOWANCES AGAINST ASSETS USED FOR PURPOSES OF TRADE
The Income Tax Act[1] allows for various income tax allowances to be claimed in respect of moveable assets used for purposes of a taxpayer’s trade. Most commonly, section 11(e) provides for a deduction equal to the amount by which the value of any machinery, plant, implements, utensils and articles have diminished by reason of wear […]
TAX DEDUCTIONS AGAINST SALARY EARNINGS
Our clients who earn only a salary will know that very few tax deductions are available against salary income for income tax purposes and whereby they may reduce the taxable income derived ultimately from such remunerations. Section 23(m) of the Income Tax Act[1] provides that none of the deductions ordinarily available to taxpayers in terms […]
WYSIGINGS AAN INKOMSTEBELASTINGOPGAWES VIR MAATSKAPPYE
As deel van die Suid-Afrikaanse Inkomstediens (SAID) se deurlopende pogings om doeltreffendheid en voldoening te bevorder, is verskeie wysigings op 26 Februarie 2018 aan die jaarlikse inkomstebelastingopgawes vir maatskappye (ITR14) aangebring. Twee nuwe skedules is op die ITR14 bygevoeg. Eerstens moet maatskappye wat die leerskaptoelae kragtens artikel 12H van die Inkomstebelastingwet[1] wil eis, voortaan besonderhede […]
ADDITIONAL MEDICAL EXPENSES TAX CREDIT
Section 6B of the Income Tax Act[1] provides for an additional medical expenses tax credit (“AMTC”) which is calculated against qualifying “out of pocket” medical expenses. This tax credit reduces the amount of income tax a natural person (hereinafter referred to as the “taxpayer”) is liable to pay. The AMTC is granted in addition to […]
VERHALING VAN INKOMSTEBELASTING
In die gewone loop van sake word bates wat deur belastingbetalers gebruik word om hul besigheid te bedryf, oor ’n aantal jare in die vorm van rekeningkundige depresiasie afwaarts gewaardeer. Die Inkomstebelastingwet[1] maak dan ook voorsiening daarvoor dat bates oor ’n periode van tyd vir belastingdoeleindes afwaarts waardeer kan word, welke slytasieverwante vermindering in waarde […]
DEDUCTIBILITY OF SED AND ED EXPENDITURE
The South African Revenue Service (“SARS”) recently issued a binding private ruling (“BPR”)[1] in which the income tax consequences of expenditure in respect of socio-economic development (“SED”) and enterprise development (“ED”) obligations were considered. The applicant in this case is a company that owns and operates a wind farm that generates electricity. In terms of […]
FURTHER REFINEMENTS TO THE ATTACK ON INTEREST FREE LOANS TO TRUSTS
We previously reported on the introduction of section 7C of the Income Tax Act, 58 of 1962. In terms of this targeted anti-avoidance provision, National Treasury sought to attack interest free loans granted to trusts by connected persons of that trust. Typically, these loans would have arisen by virtue of an individual that would sell […]
