Double tax agreements may reduce withholding taxes. Cliffe dekker hofmeyr tax treatment of doubtful debts to. The donation for donations tax purposes is therefore r 700 000. We are the leading resource for freely available legislation in south africa and are. The tax thresholds, tax rates and rebates applicable to individual taxpayers are. The 2019 year of assessment commonly referred to as a tax year runs from 1 march 2018 to 28 february 2019. Doubtful debt allowances the latest set of proposed changes to section 11j of the income tax act seeks to remove south african revenue service sars discretion, in part to reduce the sars administrative burdenbut at what cost to the taxpayer. South africa also has expanded its reportable arrangement provisions to. Section page contents division one 111 income tax act, 1961 page u arrangement of sections i3 u text of the income tax act, 1961 as amended by the finance act, 2011 1. Sep 06, 2018 how to calculate income tax south africa 2018 duration. Incometax act finance act, 2017 explanatory notes to the provisions of the finance act, 2017 circular no.
All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. South africa proposes amendments to debt restructure rules. The constitution of the republic of south africa, 1996 everyone has the right to administrative action that is lawful, reasonable and procedurally fair the purpose of the tax administration act is to. The tax season for 2019 opens on 1 august 2019 for branch filers and 1 july 2019 for efilers. The act was assented to by the president on 31 july 2018 and gazetted on 1 august 2018. The form of tax that people generally associate with the concept of income tax is a. Law of succession and inheritance tax in south africa expatica. Work through the notes on interpretation of legislation.
Find the latest articles and legal opinions with regards to sars conduct, the taxation of local and foreign entities and assets, and the tax consequences of individual and corporate activities, ranging from loans, trusts, share buybacks, reits, import and. Tax cases play a large part in the interpretation of tax legislation. Amended by tax administration laws amendment act 33 of 2019. On 23 may 2018 the president of the republic of south africa. Nonprofit law in south africa council on foundations.
Act 5 of 2001 is available in pdf format from the sars web site at sars. For income tax purposes, this guide has been updated to include the tax administration laws amendment act 22 of 2018, the taxation laws amendment act 23 of 2018 and the rates and monetary amounts and amendment of revenue laws act 21 of 2018. Debt subordination agreements draft tax law legislation, released 16 july 2018 for public comment, appears to reflect an understanding that a rule introduced in 2017 to address the income tax implications of debt reductions may have an unanticipated consequence when a company enters into certain. Guide to fiscal information key economies in africa 2018.
Doubtful debt allowances, proposal to revoke commissioners discretion south africa. The act was enacted to include a sixth income tax band for individual chargeable income above ghs120,0001 per annum. Such agencies include the international labour organisation, the world health organisation, the food and agriculture organisation of the united nations, and. South african income tax 2018, m stiglingh et al aqsat advanced questions on sa tax 2018, parsons, s editor student handbook saica student handbook 2017 2018 volume 3 the act the income tax act no. The income tax act 1961 came into force on the 1st day of april, 1962. Section 9d initially only taxed passive income but later the scope was extended to include active. Insights into tax law from south africas leading tax lawyers and other tax professionals, examining tax legislation and case law. Through combining global and incountry compliance standards and ebbased technologies, deloittes africa centre for tax o. Amended by tax administration laws amendment act 22 of 2018 amended. Republic of south africa updated 10 april 2018 resident or to another connected resident, the licensor is a nontaxable person and the licensee and resident connected persons in relation to the licensee own at least 20% shares in the licensor. Foreign dividends are subject to income tax in the hands of a south african shareholder, but exempt if the shareholder holds at least 10% of the. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. Tax law sars, vat, income tax, customs tax, estate duty.
South african tax guide taxation made easy by nyasha musviba. Namibia has double tax agreements with botswana, france, germany, india, malaysia, mauritius, romania, russia, south africa, sweden and the united kingdom. Disclosure requirements for purposes of the administration of the income tax act, the tax authorities may require any taxpayer or any other person to furnish information, documents or other items. International taxation double taxation avoidance agreements. Amendments made by the finance act, 2018 coming into force from 142019. Tax treatment of doubtful debts to be clarified by way of statutory amendments in 2015, various discretionary powers afforded to the commissioner of sars in the context of assessment provisions contained in the income tax act, no 58 of 1962 act were removed in order to formalise the move towards income tax selfassessment in south africa. If you have problems opening the pdf document or viewing pages, download the latest version of adobe acrobat reader. Subparagraphs g, h, i and j of paragraph 60 of schedule 1 come into operation on the date on which part viii of chapter ii of the income tax act, 1962, comes into operation.
Tax, eti and uif amendments 20182019 sage south africa february 2018 1 general explanatory note changes required according to the taxation laws amendment act, 2017, tax administration laws amendment act, 2017 and the rates and monetary amounts and amendment of revenue laws act. Pkf sa tax guide 2018 2019 this guide contains summarised information pertaining to the tax laws of south africa and is prepared literally minutes after the budget speech and also outlines the amendments and updates as per the speech. Income tax is a tax levied on all income and profit received by a taxpayer which includes individuals, companies and trusts. Jan 19, 2018 19 january 2018 by ben strauss tax and exchange control alert consecutive assetforshare transactions section 42 of the income tax act, no 58 of 1962 act allows taxpayers to transfer assets to a company free of immediate tax consequences, provided certain requirements are met.
The general deduction formula is contained in section 11 a read with. Other agreements income tax double taxation relief aden rules, 1953 present position thereunder these rules being consistent with the corresponding provisions of the 1961 act. It is the national governmentas main source of income and is imposed by the income tax act no. Sage south africa february 2017 1 tax tables 20172018 income tax. Sars administers a wide range of legislation in terms of part 1 and schedule 1 to the south african revenue service act, 1997. The dividends are subject to a 15%20% dividends tax, which is withheld by the company paying the dividend and then paid over to sars on behalf of the taxpayer. Building on two world bank reports the poverty and inequality assessment and theforthcoming systematic country diagnostic this 11th edition of the south africa economic update argues that. South african dividends natural persons who receive dividends from south african companies are exempt from normal income tax on the dividend income. Other useful sites include the sars website and the treasury department website. Refinement of section 7c 29 august 2017 in brief section 7c of the income tax act, 1962 act no. Study the following definitions in section 1 of the income tax act.
South african budget 201718 budget speech summary and tax proposals. 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. Income tax act 58 of 1962 south african government. Every year, sars announces its tax season, a period during which you are required to submit your annual income tax return.
With acts you are guaranteed the latest and most up to date resource for your legislative needs. Amended by rates and monetary amounts and amendment of revenue laws act 32 of 2019. In january 2018, section 11ja was amended effective for years of assessment commencing on or after 1 january 2018. The following acts are examples of the primary legislation sars administers. If you dont meet these deadlines, an interest rate of 6% on late payments may be. Section 42 of the income tax act, no 58 of 1962 allows taxpayers to transfer. Cliffe dekker hofmeyr tax treatment of doubtful debts to be. Income tax as the name denotes is a tax payable on a persons taxable income and is classified as a direct tax. Be it enacted by the parliament of the republic of south africa, as follows. South africa reduce its high dependency on commodity price movements, which do not look favorable for the country in the medium term.
How to calculate income tax south africa 2018 duration. Medical expense tax credits 10 national credit act 42 nonresidents 34 patent and intellectual property 47. Cliffe dekker hofmeyr consecutive assetforshare transactions. These are the fundamental laws to be read in conjunction with their respective regulations and finance acts. However, see comments below in respect of wht on dividends in the form of a dividends tax. Be it enacted by the parliament of the republic of south africa, as. The dates from which the amendments made by the finance act, 2018 come into effect has also been prescribed in the respective section of the act. Read a july 2018 report pdf 91 kb prepared by the kpmg member firm in south.
New paragraphs 2m and 12e of the seventh schedule to the income tax act no. Income tax act 90 of 1988 income tax amendment act 99 of 1988. It is regulated by the provisions of the income tax act of 1993 and its regulations thereof. Republic of south africa explanatory memorandum on the taxation laws amendment bill, 2018 17 january 2019 w. Proposal in view of the above, it is proposed that the following amendments be made in the act to regularise the tax treatment of funds managed by bargaining councils. Section 1 of incometax act 19612018 short title, extent. The amendments to the income tax act the act addresses the issue of south african residents holding shares in a foreign company through foreign trusts. Short title and commencement this act may be cited as the income tax act, 1973 and shall, subject to the sixth. Act what is the africa centre for tax act ho does act ork it is the leading, single point of contact for tax compliance and reporting services across the african continent. The income tax amendment act, 2018 national assembly of. The donations tax will be payable by 31 march 2018, and every year donations tax can arise on this loan. Amended by rates and monetary amounts and amendment of revenue laws act 21 of 2018. The value added tax act, 2014 the port service charges act cap 264. 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.
South africa highlights 2019 deloitte united states. 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. Text of remaining provisions of allied acts referred to in income tax act 1. Subject to certain exceptions, local dividends are fully exempt from income tax in the hands of the recipient. The parliament of ghana has passed the income tax amendment act, 2018, act 973. Proposed legislation on tax treatment, debt subordination agreements south africa. 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. Republic of south africa updated 10 april 2018 republic of south africa transfer pricing country profile updated april 2018 summary reference the arms length principle 1 does your domestic legislation or regulation make reference to the arms length principle.
The incometax act 1961 came into force on the 1st day of april, 1962. Jan 09, 2020 south africa tax treaty documents the complete texts of the following tax treaty documents are available in adobe pdf format. No tax credit will be available for paid taxes that do not qualify as income tax e. 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. Tax, eti and uif amendments 20182019 sage south africa. Tax administration act 28 of 2011 south african government. Amended by tax administration laws amendment act 22 of 2018.
The taxation laws amendment act, 2018 which was published on 17 january 2019, provides that the amendments are effective from 1. A new super tax bracket of 45% for taxable income in excess of r1,5 million was introduced for individuals and as a consequence the flat rate for trusts has also increased to 45%. A person is a a taxpayer for the purposes of this act. South africa tax treaty documents internal revenue service. Controlled foreign companies cfcs where royalties are paid by a. Section 64e1 of the income tax act, 1962 the act provides that dividends tax must be levied at a rate of 20% of the amount of any dividend paid by any company, other than a headquarter company. The south african revenue service sars has provided some guidance in binding private ruling 288 bpr 288. Tax compliance income tax returns and tax payments due dates individuals individuals employees 30 june each year provisional. Knowing the basic principles of taxation and the associated tax cases, is a prerequisite for effective tax planning. Estate duty is charged at a rate of 20% on the first r30 million of the dutiable amount of the estate and 25% on any dutiable amount of the estate exceeding r30 million. The income tax amendment act, 2018 national assembly. Tax administration act 2018 south african institute of.