South African Tax Guide 2013
BUDGET PROPOSALS
1
Dividends Tax
A dividend withholding tax will replace STC from 1 April 2012 at a rate of 15%. As from 1 March 2012, the inclusion rate for individuals and special trusts will increase to 33,3%. For companies and other trusts this will increase to 66,6%. A number of the exclusion limits have been increased.
2
Capital Gains Tax
3
Medical Tax Credit System
As from 1 March 2013, the new Medical Tax Credit System will come into effect. Further amendments to the system are to be implemented in 2014. As from March 2014, 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 will from that date be allowed to deduct up to 22,5% of the higher of taxable income or employment income for contributions to pension, provident and retirement annuity funds with a minimum annual deduction of R20 000 and an annual maximum of R250 000. For individuals at least 45 years of age, the deduction will be up to 27,5% with a minimum annual deduction of R20 000 and annual maximum of R300 000. As from 1 March 2013, tax administration of micro businesses is to be simplified by allowing the taxpayer to submit a single combined return for Turnover Tax, VAT and Employees Tax bi-annually. Proposals are under consideration to reduce the tax rate on foreign companies earning income through branches operating in South Africa from 33% to 28%. Proposals are under consideration to reduce the tax rate on employment companies from 33% to 28%.
4
Retirement Fund
5
Micro Businesses
6
Branches of Foreign Companies
7
Employment Companies
This booklet is published by FHPKF Publishers (Pty) Ltd for and on behalf of
chartered accountants & business advisers
• • • • •
All information contained herein is believed to be correct at the time of publication, 22 February
1
Dividends Tax
A dividend withholding tax will replace STC from 1 April 2012 at a rate of 15%. As from 1 March 2012, the inclusion rate for individuals and special trusts will increase to 33,3%. For companies and other trusts this will increase to 66,6%. A number of the exclusion limits have been increased.
2
Capital Gains Tax
3
Medical Tax Credit System
As from 1 March 2013, the new Medical Tax Credit System will come into effect. Further amendments to the system are to be implemented in 2014. As from March 2014, 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 will from that date be allowed to deduct up to 22,5% of the higher of taxable income or employment income for contributions to pension, provident and retirement annuity funds with a minimum annual deduction of R20 000 and an annual maximum of R250 000. For individuals at least 45 years of age, the deduction will be up to 27,5% with a minimum annual deduction of R20 000 and annual maximum of R300 000. As from 1 March 2013, tax administration of micro businesses is to be simplified by allowing the taxpayer to submit a single combined return for Turnover Tax, VAT and Employees Tax bi-annually. Proposals are under consideration to reduce the tax rate on foreign companies earning income through branches operating in South Africa from 33% to 28%. Proposals are under consideration to reduce the tax rate on employment companies from 33% to 28%.
4
Retirement Fund
5
Micro Businesses
6
Branches of Foreign Companies
7
Employment Companies
This booklet is published by FHPKF Publishers (Pty) Ltd for and on behalf of
chartered accountants & business advisers
• • • • •
All information contained herein is believed to be correct at the time of publication, 22 February