Capital allowances and Leases
|
|
- Pearl Potter
- 5 years ago
- Views:
Transcription
1 Capital allowances and Leases
2 Content of the session Movable assets Immovable assets Leases 2
3 Movable assets
4 Section 11(e) Write-off period, straight-line basis Only if no other allowance is available Write-off to R1 New / second-hand, used for the first time by that taxpayer / not, used by owner / lessee Second-hand assets? R7 000 principle? Only for ordinary wear-and-tear 4
5 Section 12C USED FOR THE 1ST TIME BY THAT TAXPAYER!!! New / second-hand Accelerated : 40/20/20/20 New and unused Acquired on/after 1 March 2002 Used by the lessee? 5
6 Requirements of s12e 1. Close corporation, co-operative or any company registered as a private company; 2. All the shareholders or members were natural persons at all times during the year of assessment; 3. Gross income does not exceed R20 million; Not trading for the whole year? 4. None of the shareholders or members at any time during the year of assessment held any interest, other than in A company listed on an exchange; or A portfolio in a collective investment scheme; or Any body corporate, share block company or other association of persons Any company, close corporation or co-operative that has not traded during any year of assessment 5. Investment income and income from the rendering of a personal service does not exceed 20% of the total receipts and all the capital gains of the company or close corporation; 6. The company is not a personal service provider. 6
7 Example of gross income limitation SARS Draft IN A qualifying entity with a year of assessment ending 28 February started trading activities on 15 August Gross income for the period 15 August 2014 to 28 February 2015 amounted to R15 million. The qualifying entity acquired a machine contemplated in section 12E(1A) on 1 August 2014 and commenced using it on 15 August The period of trade from 15 August 2014 to 28 February 2015 < 12 months Therefore reduce the gross income limitation Entity has traded for 6½ months, however under section 12E(4)(a)(i) part of a month must be treated as a full month Therefore, deemed to be 7 months R20 million number of full months traded 12 months = R20 million 7 / 12 = R11,67 million Therefore, gross income > apportioned limit Therefore, cannot register as SBC 7
8 Example of investment income Draft SARS IN A close corporation conducts two trades, namely, selling imported kitchen equipment and operating a small guesthouse. The guesthouse offers accommodation on a bed-and-breakfast basis. Guests can, however, request dinner at an additional cost. Gross income consisted of the sale of kitchen equipment of R10 million, accommodation at the guesthouse of R4 million and supply of dinner meals of R
9 Solution Gross income for the year of assessment is R which means it has not exceeded the gross income limitation of R20 million. Total receipts and accruals (other than those of a capital nature) and capital gains = R Rnil = R The provision of serviced accommodation at the guesthouse gives rise to rental income from immoveable property which is investment income as defined. The gross income from the sale of kitchen equipment and the provision of dinner meals is not investment income. Therefore, investment income = R4 million. Investment Income / Total receipts and accruals (other than those of a capital nature) and capital gains = R / = 27,8%. The 20% limitation has been exceeded. The business cannot qualify as a SBC. 9
10 What is a personal service? any service in the field of accounting, actuarial science, architecture, auctioneering, auditing, broadcasting, consulting, draftsmanship, education, engineering, financial service broking, health, information technology, journalism, law, management, real estate broking, research, sport, surveying, translation, valuation or veterinary science, if (i) that service is performed personally by any person who holds an interest in that entity; and (ii) that entity does not throughout the year of assessment employ three or more full-time employees (other than any employee who is a holder of a share in the entity, as the case may be, or who is a connected person in relation to a holder of a share in the company or a member), who are on a full-time basis engaged in the business of that company, cooperative or close corporation of rendering that service 10
11 How can a business be exempted from the personal service rule An entity must employ at least 3 full time employees who are engaged on a full-time basis in the qualifying entity s business of performing the relevant service; AND not holders of shares in or members of the qualifying entity; AND not connected persons in relation to a holder of shares in or a member of the qualifying entity. Must these employees be directly involved in the service rendering the income? 11
12 Section 12E IDENTIFICATION!!! Cost in arm s length transaction Deduct full cost in the year that the asset was brought into use, if Plant / machinery used in process of manufacturing; AND Used for the first time by that taxpayer; AND Brought into use on / after 1 April /30/20, if Acquired under agreement signed by every part on / after 1 April 2005; AND Would have qualified for s11(e), 12B or 12C Taxed at a lower rate Lower of: Actual cost Could you elect to rather apply another write-off? What if an asset is acquired for no consideration? E.g. donation? 12
13 SBC tax rates Taxable income Tax rates R0 R % R R % of taxable income above R R R R % of taxable income above R R and above R % of taxable income above R Taxable income Tax rates R0 R % R R % of taxable income above R R R R % of taxable income above R R and above R % of taxable income above R
14 S12E and moving costs A manufacturing asset qualifying for the 100% allowance is moved: In year 1 of use? In year 2 of use? A non-manufacturing asset qualifying for the 50/30/20 allowance is moved: In year 1 of use? In year 2 of use? In year 3 of use? 14
15 Example SARS Draft I/N 9 Company X is an SBC with a year of assessment that ends on the last day of February. Company X moved the location of its business operations. The following information is relevant: Asset A was acquired on 1 May 2011 at a cost of R and was brought into use during May The asset qualified for an allowance under section 12E(1A)(b) and 50/30/20 % of the cost was allowed as a deduction in the 2012, 2013 and 2014 years of assessment respectively. The cost to move asset A was R Asset B was acquired on 1 April 2010 at a cost of R and was brought into use during that month. The asset qualified for an allowance under section 12E(1) and 100 % of the cost was allowed as a deduction in the 2011 year of assessment. The cost to move asset B was R Assume the assets were moved on the following alternative dates (A) 1 July 2011; (B) 1 July 2012; (C) 1 January 2015
16 Solution (A) Asset A 2012 year of assessment: R6 000 / 3 = R year of assessment: R6 000 / 3 = R year of assessment: R6 000 / 3 = R year of assessment: Nil Moving costs were incurred during the year of assessment in which the asset was brought into use. Therefore, the write-off period for the moving costs is the same as the write-off period for the cost of the asset under section 12E(1A)(b), that is, three years. The moving costs must be deducted in three equal instalments over three years. Asset B The full cost of asset B was allowed as a deduction under section 12E(1) in the 2011 year of assessment. Irrespective of whether asset B is moved in the 2012, 2013 or 2015 year of assessment, the full amount of the moving costs (R4 000) must be allowed as a deduction in the year of assessment in which the moving costs were incurred.
17 Solution (B) Asset A 2013 year of assessment: R6 000 / 2 = R year of assessment: R6 000 / 2 = R year of assessment: Nil Two years (the current year of assessment and the 2014 year of assessment) remain in which the cost of the asset may be deducted under section 12E(1A)(b). Therefore, the moving costs must be claimed over two years of assessment in equal instalments. Asset B The full cost of asset B was allowed as a deduction under section 12E(1) in the 2011 year of assessment. Irrespective of whether asset B is moved in the 2012, 2013 or 2015 year of assessment, the full amount of the moving costs (R4 000) must be allowed as a deduction in the year of assessment in which the moving costs were incurred.
18 Solution (C) Asset A 2015 year of assessment: R6 000 / 1 = R6 000 The asset was fully written off under section 12E(1A) by the end of the 2014 year of assessment. Therefore, the moving costs are claimed in full in the 2015 year of assessment. Asset B The full cost of asset B was allowed as a deduction under section 12E(1) in the 2011 year of assessment. Irrespective of whether asset B is moved in the 2012, 2013 or 2015 year of assessment, the full amount of the moving costs (R4 000) must be allowed as a deduction in the year of assessment in which the moving costs were incurred.
19 Immovable assets
20 Section 13 manufacturing building If purchased, only claim s13 if: The building is new and unused; or If the seller previously claimed a s13 allowance Used wholly / mainly in a process of manufacturing Building includes offices / cafeteria Erected at the same time; AND Erected on the same site; AND >50% manufacturing Subsequent improvements? Land Any other allowance? Buys land and buildings together? section 11(o) S13(3) recoupment - Election of a taxpayer if: Purchases / erects a replacement building within 12 months; and The replacement building qualifies for a s13 allowance THEN: Set off against cost price of replacement building What if recoupment > cost price of replacement building? 20
21 Section 13quat Tax incentive in specified urban development zones Not available: taxpayer ceased to use building solely for trade purposes during any previous year of assessment; or disposed of by the taxpayer; or brought into use by the taxpayer after 31 March finance charges New building / extension of existing building 20%, 5% for succeeding 16 years Improvement to an existing building 20%, 20%, 20%, 20%, 20% Purchased from a developer New building : Cost = 55% of purchase price Improvement : Cost = 30% of purchase price If low cost New Existing Year 1 25% 25% Thereafter 13% x 5, 10% 25% x 3 21
22 What is low cost? low-cost residential unit means (a) an apartment in a building located within the Republic, where (i) the cost of the apartment does not exceed R ; and (ii) the owner of the apartment does not charge a monthly rental in respect of that apartment that exceeds one per cent of the cost; or (b) a building qualifying as a residential unit located within the Republic, where (i) the cost of the building does not exceed R ; and (ii) the owner of the building does not charge a monthly rental in respect of that building that exceeds one per cent of the cost contemplated in subparagraph (i) plus a proportionate share of the cost of the land and the bulk infrastructure: Provided that for the purposes of paragraphs (a) (ii) and (b) (ii), the cost is deemed to be increased by 10 per cent in each year succeeding the year in which the apartment or building is first brought into use; Construction commences on or after 21 October
23 Section 13quin 5% allowance per year based on the lesser of: Actual cost; or Market value for: New and unused Purchase from a seller that previously used the building? Commercial buildings / improvements Used by the owner or acquirer in terms of a suspensive sale agreement Contracted for on / after 1 April 2007 Construction commenced on / after 1 April 2007 NOT APPLICABLE TO RESIDENTIAL PROPERTY! 23
24 Section 13sept Employer sells a low-cost residential unit to an employee Via an interest-free loan account; Price Cost to the employer; Not subject to any conditions, except that the employee must sell the unit back to the employer When employment is terminated; or When failing to make payments for 3 months continuously Allowance = 10% of outstanding capital Maximum of 10 years Recoupment when any capital is repaid Lesser of: Reduction in capital; or Allowance claimed in current and any previous year of assessment 24
25 Section 13sex Replaces section 13ter Construction commenced on/after 21 October 2008 Only if the units are New and unused; Used solely by the taxpayer for trade purposes; Which is located in SA Only if a taxpayer owns 5 residential units in SA Allowance Residential units : 5% allowance Low-cost residential units :10% allowance Excludes the mining industry Only applicable to the owner Purchased from a developer: New building : 55% of the cost Existing building : 30% of the cost 25
26 Example An employer sells a low-cost residential unit to an employee at R on an interest-free loan on 1 July The employee repaid R2 000 per month, from 31 July All payments were made when they became due. The employer has a 31 December year-end year of assessment Outstanding capital 31/12/2009 R (R (R2 000 x 6)) Therefore, s13sept allowance (R8 800) 2010 year of assessment Outstanding capital 31/12/2010 R (R (R2 000 x 6) (R2 000 x 12)) Therefore, s13sept allowance (R6 400) Therefore, s13sept recoupment R Lower of R24 000; or (R R6 400) =R
27 Leases
28 Operating leases basics = Accounting term Mostly a rental agreement (VAT) Lessor: = Legal owner Therefore, claims w&t (on CP excl VAT) Instalments excluding VAT are included in gross income Lessee: Legal owner Therefore, no w&t Instalments deducted from gross income = instalment x 100/114 28
29 Finance lease basics = Accounting term Mostly an ICA (VAT) Part (b) Lessor: = Legal owner Therefore, claims w&t Instalments excluding VAT are included in gross income Lessee: Legal owner Therefore, no w&t Instalments deducted from gross income = Instalment (incl VAT) (Total VAT) Total instalments 29 x instalment
30 Lease premium Definition Consideration with a determinable monetary value From lessee to lessor In cash or otherwise Separate from, on top of or in stead of lease payments 30
31 Lease premium Lessor Include in full in Gross income earlier of receipt / accrual Relief i.t.o. s11(h) Lessee Premium Lease period Excludes renewal options Limited to 25 years Apportion for period used Lease period = not determined? Only deductible if included in the gross income of the lessor 31
32 Leasehold improvements Lessor Inclusion in gross income Theory When it accrues to him (contract concluded) Practice When improvements are completed Excludes voluntary improvements S11(h) relief Lessee Amount included in gross income of lessor Lease period from completion of improvements Excludes renewal options Limited to 25 years Apportionment from bringing the improvements into use 32
33 Example Spends > Stipulated in contract Actual : R Contract : R (g) on R on R Spends = Stipulated in contract Actual : R Contract : R (g) on R Spends < Stipulated in contract Actual : R Contract : R (g) on R
34 Section 11(h) relief for lessor Lessor / lessee = company and other has an interest of >50%; or Lessor and lessee = company, 3rd party has an interest of >50% in both entities Deduction = Amount included in gross income LESS PV of that amount (6%, = improvement period) 34
Income Tax. Guide to Building Allowances
Income Tax Guide to Building Allowances Preface Guide to Building Allowances This guide provides general guidance on building allowances available to owners and lessees of buildings. It does not go into
More information1. Purpose This Note provides guidance on the income tax implications of the letting of tank containers.
INTERPRETATION NOTE: NO. 73 DATE: 24 April 2013 ACT : INCOME TAX ACT NO. 58 OF 1962 (the Act) SECTION : SECTIONS 11(a), 11(e), 20(1), 23A AND 25D SUBJECT : TAX IMPLICATIONS OF RENTAL INCOME FROM TANK CONTAINERS
More informationACT : INCOME TAX ACT 58 OF 1962 SECTION : SECTIONS 11(a), 11(e), 20(1), 23A AND 25D SUBJECT : TAX IMPLICATIONS OF RENTAL INCOME FROM TANK CONTAINERS
INTERPRETATION NOTE 73 (Issue 3) DATE: 20 December 2017 ACT : INCOME TAX ACT 58 OF 1962 SECTION : SECTIONS 11(a), 11(e), 20(1), 23A AND 25D SUBJECT : TAX IMPLICATIONS OF RENTAL INCOME FROM TANK CONTAINERS
More informationAdvanced allowances for R&D use
Answers Professional Level Options Module, Paper P6 (ZAF) Advance Taxation (South Africa) December 2010 Answers Note: The ACCA does not require candidates to quote section numbers or other statutory or
More informationWelcome to the SARS Tax Workshop
Small Business Welcome to the SARS Tax Workshop The purpose of this presentation is merely to provide information in an easily understandable format and is intended to make the provisions of the legislation
More informationGUIDE TO THE URBAN DEVELOPMENT ZONE TAX INCENTIVE
GUIDE TO THE URBAN DEVELOPMENT ZONE TAX INCENTIVE Foreword This guide is a general guide with regard to the urban development zone tax incentive. It is not meant to delve into the precise technical and
More informationContent of the session. Basics Small business asset exclusion Primary residence Discharge of debt Roll-over provisions
Capital Gains Tax Content of the session Basics Small business asset exclusion Primary residence Discharge of debt Roll-over provisions Basics Updates and amendments Inclusion rate Individuals Companies
More informationTAX GUIDE FOR MICRO BUSINESSES 2011/12
SOUTH AFRICAN REVENUE SERVICE TAX GUIDE FOR MICRO BUSINESSES 2011/12 Another helpful guide brought to you by the South African Revenue Service Foreword TAX GUIDE FOR MICRO BUSINESSES 2011/12 This guide
More informationOccupational Certificate: Tax Professional
Occupational Certificate: Tax Professional External Integrated Summative Assessment (EISA) Personal Taxation Question EXEMPLAR Part A Aspect of the answer Details of aspects to be included in answer Comp
More informationIncome Tax Guide to the Urban Development Zone (UDZ) Allowance
Income Tax Guide to the Urban Development Zone (UDZ) Allowance (Issue 6) Preface Guide to the Urban Development Zone (UDZ) Allowance This guide is a general guide about the urban development zone (UDZ)
More information2017 Tax Issues for Small Businesses Seminar
2017 Tax Issues for Small Businesses Seminar Presented by Piet Nel CA(SA) Piet is the Head of the School of Applied Tax at the Tax Faculty. He formerly lectured in taxation at UNISA and the University
More informationAn automated tax clearance system will be implemented this year. 4 Employment Incentive
BUDGET PROPOSALS 1 Retirement Savings Reforms An employer s contribution to retirement funds on behalf of an employee will be treated as a taxable fringe benefit in the hands of the employee. Individuals
More informationDRAFT TAXATION LAWS AMENDMENT BILL
DRAFT TAXATION LAWS AMENDMENT BILL RELEASE The draft Taxation Laws Amendment Bill, 2014, is hereby published for comment. The draft legislation gives effect to matters presented by the Minister of Finance
More informationcompanies from 33% to 28%. This booklet is published by FHPKF Publishers (Pty) Ltd for and on behalf of chartered accountants & business advisers
BUDGET PROPOSALS 1 Dividends Tax A dividend withholding tax will replace STC from 1 April 2012 at a rate of 15%. 2 Capital Gains Tax As from 1 March 2012, the inclusion rate for individuals and special
More informationTHE TAX PROFESSIONAL KNOWLEDGE COMPETENCY ASSESSMENT NOVEMBER 2013 SAMPLE PAPER 1 SUGGESTED SOLUTION
THE TAX PROFESSIONAL KNOWLEDGE COMPETENCY ASSESSMENT NOVEMBER 2013 SAMPLE PAPER 1 SUGGESTED SOLUTION Question Topic Marks 1 Various Advisory 50 2 VAT, CGT and Capital Allowances 30 3 Normal Tax Calculation
More informationATX ZAF. Advanced Taxation South Africa (ATX ZAF) Strategic Professional Options. Tuesday 4 December 2018
Strategic Professional Options Advanced Taxation South Africa (ATX ZAF) Tuesday 4 December 2018 ATX ZAF ACCA Time allowed: 3 hours 15 minutes This question paper is divided into two sections: Section A
More informationTax Professional Knowledge Competency Assessment. June 2014 Paper 2: Solution
Tax Professional Knowledge Competency Assessment June 2014 Paper 2: Solution Suggested Solutions Question Topic Marks 1 Taxable Income 40 2 Calculate Estate Duty 40 3 Explain Tax Implications & Liabilities
More informationCIT Changes February 2018
CIT Changes 2017 26 February 2018 Introduction The items below were listed as the items that will be included in the 2017 filing season scope: Legal filing season 2017 requirements (income tax) Previously
More informationChapter 23. General Provisions. Article 169. Concept of value added tax. Chapter 24. Taxpayers. Article 170. Taxpayers
DIVISION VII. VALUE-ADDED TAX Chapter 23. General Provisions Article 169. Concept of value added tax The value added tax, hereinafter VAT, is a form of collection to the budget of a portion of the value
More informationFEEDBACK TUTORIAL LETTER 1ST SEMESTER 2017 ASSIGNMENT 1 FINANCIAL ACCOUNTING 310 [GFA711S]
FEEDBACK TUTORIAL LETTER 1ST SEMESTER 2017 ASSIGNMENT 1 FINANCIAL ACCOUNTING 310 [GFA711S] 1 ASSIGNMENT ONE QUESTION 1 (IAS8: Changes in Accounting Estimates) 32 marks Assumption 1: Residual value reduced
More informationCAPITAL ALLOWANCES PRACTICE EXAMPLE 1
1 A Ltd has a 31 August 2010 year end. Sales was R10,000,000 and cost of sales was R3,000,000. They own the following assets. For each of the assets mentioned, calculate the amount of the deduction that
More informationThis booklet is published by PKF Publishers (Pty) Ltd for and on behalf of. chartered accountants & business advisers
BUDGET PROPOSALS 1 Tax-Preferred Savings Accounts Tax-preferred savings accounts, as a measure to encourage household savings, will proceed. These accounts will have an initial annual contribution limit
More informationIncome Tax. ABC of Capital Gains Tax for Companies (Issue 7) ABC of Capital Gains Tax for Companies (Issue 7) 1
Income Tax ABC of Capital Gains Tax for Companies (Issue 7) ABC of Capital Gains Tax for Companies (Issue 7) 1 Preface ABC of Capital Gains Tax for Companies This guide provides a basic introduction to
More informationTax Technician Knowledge Competency Assessment June 2015 Paper 1: Solution
Tax Technician Knowledge Competency Assessment June 2015 Paper 1: Solution Instructions to Candidates 1. This competency assessment paper consists of two questions. 2. Answer each question in a separate
More informationWESTERN CAPE De Waterkant Building 10 Helderberg Street Stellenbosch PO Box 920 Stellenbosch 7599
DIRECTORS Pieter-Jan Bestbier, Jock de Jager, André du Plessis, Fran du Plessis, Jana Goosen, Francois Joubert, Iaan Marx, Stephan Pretorius, Lehandi Swanepoel, Johann van Rensburg, Erlo Vos. WESTERN CAPE
More informationGuide to Rental Income
IT 70 Guide to Rental Income RPC005763_EN_WB_L_1 Contents Introduction 3 Types of Rental Income 4 What Expenditure can be Deducted? 4 Interest on Borrowings 5 Wear and Tear 6 Tax Incentive Schemes 6 What
More informationTAX PROFESSIONAL OCCUPATIONAL CERTIFICATE: Initial Test of Competency RPL Assessment SAQA ID: July Paper 1: Questions 1 and 2 SOLUTIONS
OCCUPATIONAL CERTIFICATE: TAX PROFESSIONAL SAQA ID: 93624 Initial Test of Competency RPL Assessment July 207 Paper : Questions and 2 SOLUTIONS CANDIDATE NUMBER Instructions to Candidates. This competency
More informationCompany distributions in perspective
Company distributions in perspective Herman Viviers 22 September 2015 Disclaimer Nothing in this presentation should be construed as constituting tax advice or a tax opinion. An expert should be consulted
More informationTax Guide for Micro Businesses 2010/11. Turnover Tax. for Small Businesses. Tax Guide For Micro Businesses 2010/11 - Page 1
Tax Guide for Micro Businesses 2010/11 Turnover Tax for Small Businesses Tax Guide For Micro Businesses 2010/11 - Page 1 TT Comprehensive Guide.indd 1 TAX GUIDE FOR MICRO BUSINESSES 2010/11 The guide contains
More information- 2 - INCOME TAX RATES Rate of normal income tax on taxable income of any natural person or special trust: 2014/2015
TAX GUIDE 2014-2015 - 1 - CONTENTS INCOME TAX RATES, REBATES AND THRESHOLDS 2 WEAR AND TEAR ALLOWANCES General 3 Capital allowances 3 RESIDENCE BASIS OF TAXATION Resident 4 Non-resident 4 INTEREST AND
More informationAccrual is discussed in court cases, and it was concluded as being the time the
Question (a) Discuss whether Tariro is correct to say that Zee Cellular should not have deducted PAYE from his December salary given that he was yet to be paid the salary. The issue at hand is whether
More informationVAT audit/review considerations
VAT audit/review considerations Content of the session Selection for an audit What can you expect and what are your rights? Risk areas Input VAT Risk areas Output VAT 2 SARS audit/review The following
More informationA closer look at the new Debt Reduction Regime
A closer look at the new Debt Reduction Regime Herman Viviers 20 November 2014 Disclaimer Nothing in this presentation should be construed as constituting tax advice or a tax opinion. An expert should
More informationEIGHTH SCHEDULE DETERMINATION OF TAXABLE CAPITAL GAINS AND ASSESSED CAPITAL LOSSES (SECTION 26A OF THIS ACT)
1 This document is an unofficial consolidation of the Eighth Schedule to the Income Tax Act, 58 of 1962, introduced by the Taxation Laws Amendment Act, 5 of 2001, the amendments effected by the Revenue
More informationPaper P6 (ZAF) Advanced Taxation (South Africa) Friday 6 June Professional Level Options Module
Professional Level Options Module Advanced Taxation (South Africa) Friday 6 June 2014 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section A BOTH
More informationRent-A-Room Relief. ITCTCGT Part
Rent-A-Room Relief ITCTCGT Part 07-01-32 This document should be read in conjunction with section 216A Taxes Consolidation Act 1997 Document last updated August 2017 Table of Contents 1.Introduction...3
More informationACT : INCOME TAX ACT 58 OF 1962 SECTION : SECTION 13quin SUBJECT : DEDUCTION IN RESPECT OF COMMERCIAL BUILDINGS CONTENTS
DRAFT DRAFT INTERPRETATION NOTE DATE: ACT : INCOME TAX ACT 58 OF 1962 SECTION : SECTION 13quin SUBJECT : DEDUCTION IN RESPECT OF COMMERCIAL BUILDINGS CONTENTS PAGE Preamble... 2 1. Purpose... 2 2. Background...
More informationTAXATION LAWS AMENDMENT BILL
REPUBLIC OF SOUTH AFRICA TAXATION LAWS AMENDMENT BILL (As introduced in the National Assembly (proposed section 77)) (The English text is the offıcial text of the Bill) (MINISTER OF FINANCE) [B 13 14]
More information26 March 2016 The South African Revenue Service Lehae La SARS 299 Bronkhorst Street PRETORIA 8000
26 March 2016 The South African Revenue Service Lehae La SARS 299 Bronkhorst Street PRETORIA 8000 BY EMAIL: policycomments@sars.gov.za RE: DRAFT TAX GUIDE FOR MICRO BUSINESSES 2015/16 Provided below are
More informationProfessional Level Options Module, Paper P6 (ZAF)
Answers Professional Level Options Module, Paper P6 (ZAF) Advanced Taxation (South Africa) December 2016 Answers Note: ACCA does not require candidates to quote section numbers or other statutory or case
More informationAs a small business are you finding it difficult to juggle your taxes?
As a small business are you finding it difficult to juggle your taxes? Introducing Turnover Tax The all-in-one tax that s simple and saves you time and money. Turn over to a new tax! Small businesses have
More informationIN RESPECT OF FRINGE BENEFITS
GUIDE FOR EMPLOYERS IN RESPECT OF (2016 TAX YEAR) 1 PURPOSE 3 2 SCOPE 3 3 OBLIGATIONS OF THE EMPLOYER 3 4 BENEFITS GRANTED TO RELATIVES OF EMPLOYEES AND OTHERS 4 5 TAXABLE BENEFITS 4 5.1 ACQUISITION OF
More informationGovernment Gazette REPUBLIC OF SOUTH AFRICA
Government Gazette REPUBLIC OF SOUTH AFRICA Vol. 517 Cape Town 22 July 2008 No. 31267 THE PRESIDENCY No. 781 22 July 2008 It is hereby notified that the President has assented to the following Act, which
More informationtraining (pty) ltd Tax Guide
training (pty) ltd. 2016-2017 Tax Guide CONTENTS INCOME TAX RATES Natural person or special trust... 2 TAX REBATES Rebates for individuals... 2 Medical aid contributions and medical expenses... 2 TAX THRESHOLDS...
More informationTax data card 2018/2019
Tax data card 2018/2019 1 Contents 1 Individuals and trusts 4 Companies 5 Capital allowances 6 Capital gains tax 7 Tax Administration Act penalties 8 Value-added tax 8 Other taxes, duties & levies 10 Exchange
More informationTax Brochure for Non-Residents. Tax Brochure Non-Residents i
Tax Brochure for Non-Residents Tax Brochure Non-Residents i TAX BROCHURE FOR NON-RESIDENTS FOREWORD This document provides general guidelines regarding- different forms/types of business entities through
More informationThis bulletin cancels and replaces Interpretation Bulletin IT-66R5 dated July 22, Current revisions are designated by vertical lines.
Subject: INCOME TAX ACT Capital Dividends NO: IT-66R6 DATE: May 31, 1991 REFERENCE: Section 184, subsections 83(2) to (2.4), 89(1.1) and (1.2), paragraphs 89(1)(b) and (b.1) (also section 14, subsection
More information2004/2005. Financial and Taxation Directory. Attorneys
2004/2005 Financial and Taxation Directory We believe that the information contained in this booklet is accurate at the time of publication 18 February 2004. As every situation depends on its own facts
More informationTax Professional Knowledge Competency Assessment. June 2014 Paper 1: Solution
Tax Professional Knowledge Competency Assessment June 2014 Paper 1: Solution Suggested Solution Question Topic Marks 1 Company Tax Calculation and Advisory 40 2 Analysis of Financial Statements 45 3 Value-Added
More informationVALUE-ADDED TAX ACT NO. 89 OF 1991
VALUE-ADDED TAX ACT NO. 89 OF 1991 [View Regulation] [ASSENTED TO 5 JUNE, 1991] [DATE OF COMMENCEMENT: 30 SEPTEMBER, 1991] (English text signed by the President) This Act has been updated to Government
More informationThe ABC. of Capital Gains Tax for Companies
The ABC of Capital Gains Tax for Companies The ABC of Capital Gains Tax for Companies FOREWORD This guide deals with some of the basic principles of Capital Gains Tax (CGT) in order to contribute to a
More informationTax Guide
2017-2018 Tax Guide - 1 - CONTENTS INCOME TAX RATES 2 DIFFERENT TYPES OF ENTITIES TAX REBATES 2 Small business corporations 24 TAX THRESHOLDS 2 Personal service providers 26 MEDICAL SCHEME TAX CREDITS
More informationNext >> Quick Tax Guide 2019/20 South Africa. Making an impact that matters
Next >> Quick Tax Guide 2019/20 South Africa Making an impact that matters Contents... 1...1...1...2...3...4 Severance and Retirement Fund Lump Sum...4... 5...5...6...7...7...7...7... 8...8...8...9...9...9...9...10...10...10...10...10...11...
More informationGovernment Gazette REPUBLIC OF SOUTH AFRICA. Vol. 475 Cape Town 24 January 2005 No
Government Gazette REPUBLIC OF SOUTH AFRICA Vol. 475 Cape Town 24 January 2005 No. 27188 THE PRESIDENCY No. 46 24 January 2005 It is hereby notified that the President has assented to the following Act,
More informationTutorial letter 201/1/2015
TAX2601/201/1/2015 Tutorial letter 201/1/2015 Principles of Taxation TAX2601 Semester 1 Department of Taxation QUESTIONS AND SUGGESTED SOLUTIONS ASSIGNMENT 3 (exam paper) Bar code 2 Dear Student This tutorial
More informationUniversity of Pretoria. LEARNING AREA 6: Fringe Benefits Lecture 38-41
University of Pretoria LEARNING AREA 6: Fringe Benefits Lecture 38-41 1 Recap Due to the nature of Simpiwe s work, he travels to clients quite often as he needs to audit on site. Simpiwe stays 10km from
More informationPAYE and Fringe benefit
PAYE and Fringe benefit 1 Definitions - Employer Par 1 Fourth Schedule Employer (Par 1 of Fourth Schedule ) Any person who pays or is liable to pay to any person any amount by way of remuneration. Including
More informationLatest Tax Developments. June 2017
Latest Tax Developments June 2017 Introduction Monthly webinar 6th of 11 webinars Recent developments: This one June 2017; Cannot cover all developments in detail; Relevance of developments; Some will
More informationQuick Tax Guide 2013/14 Simplicity from complexity
Quick Tax Guide 2013/14 Simplicity from complexity Income Tax for Individuals Tax rates and rebates Individuals, Estates & Special Trusts 1 (Year ending 28 February 2014) Taxable income as exceeds But
More informationChange, the new certainty
Change, the new certainty Tax Facts February 2018/2019 Income Tax Residence basis of taxation South Africa has a residence basis of taxation. Residents are taxable on worldwide income and capital gains,
More informationInterpretation Notes Register. All Taxes
Register All Taxes Publication 2001/11/30 IN 1 Provisional tax estimates Paragraph 19(3) of the Fourth Schedule 2009/03/17 IN 2 Foreign Dividends: Deductibility of Interest Section 11C Issue 1 2002/02/02
More informationPaper P6 (ZAF) Advanced Taxation (South Africa) Friday 5 June Professional Level Options Module
Professional Level Options Module Advanced Taxation (South Africa) Friday 5 June 2015 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section A BOTH
More informationProfessional Level Options Module, Paper P6 (ZAF)
Answers Professional Level Options Module, Paper P6 (ZAF) Advance Taxation (South Africa) June 2010 Answers 1 Tax Advisor Firms Address The Directors The Local Company Ltd Client s Address 1 June 2010
More informationGovernment Gazette REPUBLIC OF SOUTH AFRICA
Government Gazette REPUBLIC OF SOUTH AFRICA Vol. 511 Cape Town 8 January 2008 No. 30656 THE PRESIDENCY No. 39 8 January 2008 It is hereby notified that the President has assented to the following Act,
More informationInternal Revenue Code Section 179(b)(6) Election to expense certain depreciable business assets
Internal Revenue Code Section 179(b)(6) Election to expense certain depreciable business assets CLICK HERE to return to the home page (a) Treatment as expenses. A taxpayer may elect to treat the cost of
More informationtes for Guidance Taxes Consolidation Act 1997 Finance Act 2017 Edition - Part 11C
tes for Guidance Taxes Consolidation Act 1997 Finance Act 2017 Edition - Part 11C Part 11C Emissions-based limits on capital allowances and expenses for certain road vehicles 380K Interpretation and general
More informationTrade - Given widest possible meaning (Burgess) - implies continuity but a single venture could still qualify
Preamble: - Trade to be carried on - Income to be derived from such trade Trade - Given widest possible meaning (Burgess) - implies continuity but a single venture could still qualify Expenditure & Losses
More informationThe commissioner of VAT may issue an assessment if:
QUESTION ONE (a) Taxable turnover If a business is making taxable supplies, the value of these supplies is called taxable turnover. All goods are taxable except those listed in the second schedule of VAT
More informationCENTRE O F TAX EXCELLENCE TAX GUIDE 2014 / 15.
CENTRE O F TAX EXCELLENCE TAX GUIDE 2014 / 15 www.saipa.co.za TAX GUIDE 2014/15 CONTENTS BUDGET SUMMARY...4 RESIDENCE BASIS TAXATION... 7 Tax Rates: Individuals... 9 Tax rates: Trusts... 9 Tax rates: Companies...
More informationPaper F6 (ZAF) Taxation (South Africa) Tuesday 4 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants
Fundamentals Level Skills Module Taxation (South Africa) Tuesday 4 June 2013 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Tax
More information% 28% funds Trusts 45% 45% Small Business Funding Entities 28% 28%
- 1 - CONTENTS INCOME TAX RATES 2 DIFFERENT TYPES OF ENTITIES TAX REBATES 2 Small business corporations 25 TAX THRESHOLDS 2 Personal service providers 26 MEDICAL SCHEME TAX CREDITS 2 Micro businesses 27
More informationNext >> Driving progress Quick Tax Guide 2018/19
Next >> Driving progress Quick Tax Guide 2018/19 South Africa Contents... 1 and Rebates... 1... 1... 2 and Allowances... 3... 4 Severance and Retirement Fund Lump Sum... 4... 5... 5... 6... 7... 7... 7...
More informationLAW OF MONGOLIA. CORPORATE INCOME TAX (Amended Law) CHAPTER ONE General Provisions
LAW OF MONGOLIA June 29.2006 State Palace, Ulaanbaatar CORPORATE INCOME TAX (Amended Law) CHAPTER ONE General Provisions Article 1. Purpose of the law 1.1. The purpose of this law is to regulate relations
More informationRes HD C2C A Better Pension System. Saving for Retirement: A Guide to the Tax Legislation. March Lud. CanadU
Res HD7105.45 C2C38 1988 A Better Pension System Saving for Retirement: A Guide to the Tax Legislation March 1988 Lud CanadU A Better Pension System 11 #1[1:14b5r111111 FOR Saving for Retirement: A Guide
More informationGovernment Gazette REPUBLIC OF SOUTH AFRICA
Government Gazette REPUBLIC OF SOUTH AFRICA Vol. 506 Cape Town 8 August 2007 No. 30157 THE PRESIDENCY No. 707 8 August 2007 It is hereby notified that the President has assented to the following Act, which
More information1. (1) In this Act, save where the context otherwise requires
VALUE-ADDED TAX ACT 1972 VALUE-ADDED TAX ACT 1972 - LONG TITLE AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO INLAND REVENUE (INCLUDING EXCISE)
More informationFundamentals Level Skills Module, Paper F6 (ZAF)
Answers Fundamentals Level Skills Module, Paper F6 (ZAF) Taxation (South Africa) June 203 Answers and Mark Scheme Note: ACCA does not require candidates to quote section numbers or other statutory or case
More informationDonating to Public Benefit Organisations
Donating to Public Benefit Organisations Public benefit organisations ( PBOs ) provide invaluable healthcare, education, poverty alleviation, housing, conservation, environmental, cultural and religious
More informationREPUBLIC OF SOUTH AFRICA DRAFT EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, July 2014
REPUBLIC OF SOUTH AFRICA DRAFT EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2014 17 July 2014 [W.P. - 14] 1 TABLE OF CONTENTS EXPLANATION OF MAIN AMENDMENTS 1. INCOME TAX: INDIVIDUALS, SAVINGS
More information1. What are the main authorities responsible for enforcing taxes on finance transactions in your jurisdiction?
Germany Michael Best and Nico Fischer P+P Pöllath + Partners www.practicallaw.com/4-501-6739 TAX AUTHORITIES 1. What are the main authorities responsible for enforcing taxes on finance transactions in
More informationProfessional Level Options Module, Paper P6 (ZAF)
Answers Professional Level Options Module, Paper P6 (ZAF) Advanced Taxation (South Africa) June 2011 Answers Note: The ACCA does not require candidates to quote section numbers or other statutory or case
More informationIFRS for SMEs IFRS Foundation-World Bank
International Financial Reporting Standards 1 IFRS for SMEs IFRS Foundation-World Bank 26 27 May 2011 Kiev, Ukraine Copyright 2010 IFRS Foundation. All rights reserved. The IFRS for SMEs 2 Topic 3.1(b)
More informationOccupational Certificate Tax Professional
Occupational Certificate Tax Professional External Integrated Summative Assessment (EISA) SAQA ID: 93624 November 2017 Paper 1: Tax Awareness MULTIPLE CHOICE QUESTIONS TRUE/FALSE QUESTIONS CANDIDATE NUMBER
More informationExample IT14 C C Y Y M M D D Y Y M M D D C C / / / PARTICULARS OF COMPANY / CLOSE CORPORATION PARTICULARS OF PUBLIC OFFICER
Registered ame Trade ame PARTICULARS OF PUBLIC OFFICER Domicilium Citandi Et Executandi (Address for legal purposes) PARTICULARS OF COMPA / CLOSE CORPORATIO Surname Cell no. contact telephone no. I declare
More informationPaper P6 (ZAF) Advanced Taxation (South Africa) Friday 5 December Professional Level Options Module
Professional Level Options Module Advanced Taxation (South Africa) Friday 5 December 2014 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section
More informationPaper P6 (ZAF) Advanced Taxation (South Africa) Monday 3 December Professional Level Options Module
Professional Level Options Module Advanced Taxation (South Africa) Monday 3 December 2007 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section
More informationCountrywide Refurbishment Scheme
Countrywide Refurbishment Scheme Part 10-11-03 Document last updated April 2018 Table of Contents Introduction...2 1. Qualifying period...2 2. Meaning of refurbishment...2 3. Qualifying expenditure...3
More informationIncome Tax. ABC of Capital Gains Tax for Individuals (Issue 9)
Income Tax ABC of Capital Gains Tax for Individuals (Issue 9) Preface ABC of Capital Gains Tax for Individuals This guide provides a simple introduction to capital gains tax (CGT) at its most basic level
More informationProfessional Level Options Module, Paper P6 (ZAF)
Answers Professional Level Options Module, Paper P6 (ZAF) Advanced Taxation (South Africa) December 2012 Answers Note: ACCA does not require candidates to quote section numbers or other statutory or case
More informationA Revenue Guide to Rental Income
A Revenue Guide to Rental Income Contents Introduction 2 What types of rental income are there? 2 What expenses can be claimed? 3 What is the position with regard to interest paid on borrowings? 4 What
More informationTax card 2016/17. Pocket Reference Guide. kpmg.com/na. February Sponsored by
Tax card 2016/17 Pocket Reference Guide kpmg.com/na February 2016 1 Sponsored by Contacts The contacts at KPMG in connection with this document are: Robert Grant Tax Director, KPMG Advisory Services (Namibia)
More informationLeasing taxation Estonia
2012 KPMG Baltics OÜ, an Estonian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss
More informationBUDGET PROPOSALS 2 BURSARIES & SCHOLARSHIPS 14 CAPITAL GAINS TAX (CGT) 22 CAPITAL INCENTIVE ALLOWANCES 31 COMPANIES & CLOSE CORPORATIONS 6 CRITICAL
INDEX PAGE BUDGET PROPOSALS 2 BURSARIES & SCHOLARSHIPS 14 CAPITAL GAINS TAX (CGT) 22 CAPITAL INCENTIVE ALLOWANCES 31 COMPANIES & CLOSE CORPORATIONS 6 CRITICAL PAYMENT DATES 8 DEDUCTIONS & ALLOWANCES INDIVIDUALS
More informationEXTERNAL GUIDE COMPREHENSIVE GUIDE TO THE ITR12T RETURN FOR TRUSTS
THE ITR12T RETURN FOR TABLE OF CONTENTS 1 INTRODUCTION... 6 2 GENERAL INFORMATION... 6 2.1 WHO MUST COMPLETE AND SUBMIT THE IT12T... 6 2.2 HOW TO OBTAIN A RETURN... 7 2.3 HOW TO SUBMIT A RETURN... 8 2.4
More informationTaxation Issues for Milk Production Partnerships
Taxation Issues for Milk Production Partnerships CONTENTS Chapter 1 Introduction 2 Chapter 2 How are partners taxed 3 Chapter 3 Basis of Tax Assessments 4 Chapter 4 Farming Profits/Losses 7 Chapter 5 What
More informationPaper P6 (ZAF) Advanced Taxation (South Africa) Thursday 7 December Professional Level Options Module
Professional Level Options Module Advanced Taxation (South Africa) Thursday 7 December 2017 Time allowed: 3 hours 15 minutes This question paper is divided into two sections: Section A BOTH questions are
More informationBudget Highlights 2018
Budget Highlights 2018 14 March 2018 Budget Highlights Value-Added Tax rate increases from 14% to 15% on 1 April 2018 Limited relief for the effect of inflation in adjusting Personal Income Tax rates resulting
More informationInternal Revenue Code Section 1250 Gain from dispositions of certain depreciable realty
Internal Revenue Code Section 1250 Gain from dispositions of certain depreciable realty CLICK HERE to return to the home page (a) General rule. Except as otherwise provided in this section (1) Additional
More informationPaper P6 (ZAF) Advanced Taxation (South Africa) Thursday 8 December Professional Level Options Module
Professional Level Options Module Advanced Taxation (South Africa) Thursday 8 December 2016 Time allowed: 3 hours 15 minutes This question paper is divided into two sections: Section A BOTH questions are
More informationFinancial Leadership through Professional Excellence 2017/2018 TAX CARD. Telephone + 27 (0) Facsimile + 27 (0)
Financial Leadership through Professional Excellence 2017/2018 TAX CAD Telephone + 27 (0) 21 683 4834 Facsimile + 27 (0) 86 541 2872 www.mdacc.co.za mdacc@mdacc.co.za MD House Greenford Office Estate Off
More information