Sars administers a wide range of legislation in terms of part 1 and schedule 1 to the south african revenue service act, 1997. And since government is desirous of allowing providers of financial products to market financial products in a manner that creates a partnership between government and those providers of financial products to encourage household savings. The income tax act, 1962 the act has always contained an administrative section. In the 2017 national budget speech, the minister of finance proposed to amend the exemption, such that employment.
Jun 28, 2017 south african nationals who live and work overseas, will often remain tax resident in south africa under domestic law. Jun 27, 2014 23 june 2014, and it will be interesting to see whether sars will insist on retrospectivity in the final notice. Pdf south african income tax implications for income. What makes notes on south african income tax exceptional is its relevance to real world tax problems. It is only available in english and each licence only works on one computer, tablet or ipad. Find fundamentals of south african income tax in south africa. The below table is a guideline of the personal tax rates that are currently applicable in south africa. They presumed the term should have the same meaning in tax law as in trust law so gains that would have gone to a capital beneficiary had the gain been derived by a. Income tax act 90 of 1988 income tax amendment act 99 of 1988 income tax act 70 of 1989 legal succession to the south african transport services act 9 of 1989. South african income tax guide for 202014 sa tax guide. Refinement of section 7c 29 august 2017 in brief section 7c of the income tax act, 1962 act no. This section, however, was never stringently enforced within practice or by sars, and for years there has been speculation of a separate act to govern tax administration in south africa.
Proposed repeal of foreign employment income exemption july 26, 2017 in brief south african residents are entitled to an exemption for remuneration received or accrued with respect to services rendered outside south africa pursuant to section 101oii of the income tax act, 1962 act no. If so, you need to know about the antiavoidance provisions of section 9d of the income tax act, 58 of 1962. Phillip haupt deals with complex tax problems, and works predominantly with audit firms, law firms, businesses and high net worth individuals. Income tax amendment act 1993 amended by income tax act 1 of 1993. Determination of the daily amount in respect of meals and incidental costs for purposes of section 81 of the income tax act, 1962 act no. The impact of tax policy changes on the personal income tax burden in south africa wynonna steyn 1 and yolande jordaan 1 abstract a tax micro simulation model populated with the relevant data to simulate tax policy changes is a valuable tool to measure the net impact of various tax policy changes individually or simultaneously. Proposed repeal of foreign employment income exemption july 26, 2017 in brief south african residents are entitled to an exemption for remuneration received or accrued with respect to services rendered outside south africa pursuant to section 101oii of.
Fixing of rate per kilometre in respect of motor vehicles for the purposes of section 81bii and iii of the income tax act, 1962. Tax residents can make the following deductions from their taxable income in south africa. Donations made between spouses cliffe dekker hofmeyr inc. The davis tax committee dtc recently released its first interim report on mining for the minister of finance and has called on the public to provide comments on their recommendations. In the 2017 national budget speech, the minister of finance proposed to amend the exemption, such that employment income. The taxation of trusts in south africa with emphasis on the. These are set out in section 10 of the 1962 income tax act south africa. Tax tips and mustknows for sa landlords finance, advice. Of the republic of namibia legal assistance centre. The book contains commentary which is not available in any other book on south african tax.
Our covid19 community guidelines tips, advice and news related to trading on gumtree during the covid19 crisis. Notes on south african income tax is written by phillip haupt, a leading tax consultant in south africa. The impact of tax policy changes on the personal income tax. From 1 march 2017 onwards, taxpayers have a further consideration in the form of section 7c of the income tax act to take into account when doing estate planning.
How to file your income taxes in south africa expatica. This act addresses the income earned by suspect structures created to avoid tax in south africa by investing in a controlled foreign company cfc. Notes on south african income tax 2014 phillip haupt hard copy the 2014 edition of notes on south african income tax. Income tax rates for natural persons and special trusts. The impact of tax policy changes on the personal income. Average personal income tax and social security contribution rates on gross labour income. Therefore section 12t of the income tax act, 1962, and these regulations are. Notes on south african income tax in south africa gumtree. Capital gains tax consequence s were n ot considered in an y t ransaction w here the in come was clas sified a s being of a capital. Temporary out of stock estimated delivery within 15 days.
A full list of the contents can be found on the hedron website. In 1997, however, provisions were introduced in the act to tax residents of the republic on their worldwide passive investment income. The taxation of trusts in south africa with emphasis on. South african institute of chartered accountants integritax newsletter income tax and vat acts online the income tax act, 1962, valueadded tax act, 1991 and other tax acts may be accessed on the sars website the consolidated income tax act is available, in a pdf version, under the tax heading on the university of pretoria, laws of sa consolidated legislation website.
The taxation laws amendment bill, 2007, introduces amendments to the estate duty act, 1955, the income tax act, 1962, the customs and excise act, 1964, the stamp duties act, 1968, the valueadded tax act, 1991, the revenue laws. Tax administration act 28 of 2011 south african government. In terms of section 101oii of the income tax act, 1962 a ct no. The online library is accessible when your pc or ipad is connected to the internet. This article provide a summary of the taxrelated proposals, as contained in the first interim report. On account of the fact that south africa has developed its capital gains tax legislation based on the legislation used in australia, an analysis of the. Allin average personal income tax rates at average wage by family type. Tbe rates of normal tax to be levied in terms of section 52 of the income tax act, 1962 act no. The 2014 edition of notes on south african income tax will be added at the beginning of january 2014.
The below illustration provides a salary calculation for a south africa resident earning r20,000. Be it enacted by the parliament of the republic of south africa, as follows. Hedron publishers of notes on south african income tax. However, under the current legislation, employment income they earn in the foreign country can often be exempt from being subject to tax in south africa. The implications of those sections on transactions concluded by a trust will also be discussed. From 1 april 2012 dividends received from domestic companies are subject to a final withholding tax of 15% but will be exempt from normal tax. South africa income tax act 30 public benefit organisations 1 for the purposes of this act public benefit activity means a any activity listed in part i of the ninth schedule. Income tax amendment act, 2011 legal assistance centre. This net income may be included in the taxable income of the south african tax resident shareholders.
View gumtree free online classified ads for fundamentals of south african income tax and more in south africa. These provisions were introduced in the act to protect the south african tax base from the effects of the relaxation of the exchange control provisions that came into effect on 1 july 1997. Tax threshold allowance of r79,000 r122,300 for those aged 6574 and r6,750 for those aged 75 and over. South african income tax rates from 2008 to 2014 sa tax. Income tax act 58 of 1962 the act securities transfer tax act 25 of 2007 the stt act south africa sa south african revenue service sars tax administration act 28 of 2011 taa transfer duty act 40 of 1949 the transfer duty act valueadded tax act 89 of 1991 the vat act. The consolidated income tax act is available, in a pdf version, under the tax heading on the university of pretoria, laws of sa consolidated legislation website. Carmen holdstock donations made between spouses sections 54 to 64 of the income tax act, no 58 of 1962 act provide for the imposition of donations tax on the value of any property disposed of by way of a donation.
Income tax act 58 of 1962 south african government. The concept of residence and ordinary residence and its relevance to income tax income received by or accrued to a nonresidents from a source within south africa the income tax treatment of overseas income application of oecd model double tax treaty to given situations. South african nationals who live and work overseas, will often remain tax resident in south africa under domestic law. In conducting my research the relevant sections of the income tax act 58 of 1962 will be examined.
Income tax act 90 of 1988 income tax amendment act 99 of 1988 income tax act 70 of 1989. The following acts are examples of the primary legislation sars administers. Foreign investments and section 9d tax implications. As from 1 january 2016, section 12b of the income tax act south africa was amended from a threeyear 50% 30% 20% accelerated depreciation allowance on renewable energy to an even quicker depreciation allowance of just one year 100%.
This act may be cited as the income tax amendment act 2014, and commences on the pt day of july 2014. South african income tax rates from 2008 to 2014 sa tax guide. The income tax act hereinafter referred to as the principal act is amended in section 2 cap. Paragraph 78 of schedule 1 is deemed to have come into operation on 1 january 2011 and applies in respect of premiums incurred on or after that date. Certain forms of income are exempt from tax in south africa. Search results for fundamentals of south african income tax 2014. Income tax and vat acts online the income tax act, 1962, valueadded tax act, 1991 and other tax acts may be accessed on the sars website.