South African Tax Guide 2013

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  • Topic: Taxation, Dividend tax, Tax
  • Pages : 53 (19982 words )
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  • Published : February 4, 2013
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BUDGET PROPOSALS
1

Dividends Tax

AdividendwithholdingtaxwillreplaceSTCfrom1April2012atarate of 15%. Asfrom1March2012,theinclusionrateforindividualsandspecial trustswillincreaseto33,3%.Forcompaniesandothertruststhiswill increaseto66,6%. Anumberoftheexclusionlimitshavebeenincreased.

2

Capital Gains Tax

3

Medical Tax Credit System

Asfrom1March2013,thenewMedicalTaxCreditSystemwillcome intoeffect.Furtheramendmentstothesystemaretobeimplemented in 2014. AsfromMarch2014,anemployer’scontributiontoretirementfundson behalfofanemployeewillbetreatedasataxablefringebenefitinthe handsoftheemployee.Individualswillfromthatdatebeallowed todeductupto22,5%ofthehigheroftaxableincomeoremploymentincomeforcontributionstopension,providentandretirement annuityfundswithaminimumannualdeductionofR20000andan annualmaximumofR250000.Forindividualsatleast45yearsofage, thedeductionwillbeupto27,5%withaminimumannualdeduction ofR20000andannualmaximumofR300000. Asfrom1March2013,taxadministrationofmicrobusinessesistobe simplifiedbyallowingthetaxpayertosubmitasinglecombinedreturn forTurnoverTax,VATandEmployeesTaxbi-annually. Proposalsareunderconsiderationtoreducethetaxrateonforeign companiesearningincomethroughbranchesoperatinginSouthAfrica from33%to28%. Proposalsareunderconsiderationtoreducethetaxrateonemploymentcompaniesfrom33%to28%.

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



Allinformationcontainedhereinisbelievedtobecorrectatthetimeofpublication, 22February2012.Thecontentsshouldnotbeusedasabasisforactionwithout furtherprofessionaladvice. Whileeverycarehasbeentakeninthecompilationofthispublicationnoresponsibility shallbeacceptedforanyinaccuracies,errorsoromissions. Theinformationispreparedfromthebudgetspeechandthelegislationfinallyenacted maydifferconsiderably. Changesinratesoftaxannouncedinthebudgetspeechforthetaxyear2013become effectiveonlyoncethelegislationisenactedbyParliament. Copyrightsubsistsinthiswork.Nopartofthisworkmaybereproducedinanyformor byanymeanswithoutthepublisher’swrittenpermission.

1

INDEX
AdministrativePenalties 46 ArbitrationAwards 16 AssessedLossesRing-fenced 37 BodyCorporates 41 Bond/InstalmentRepayments 34 BranchProfitsTax 4 Broad-BasedEmployeeEquity 9 BudgetProposals 1 BursariesandScholarships 9 CapitalGainsTax 22 CapitalIncentiveAllowances 19 ConnectedPersons 27 CorporateTransactions 25 Deductions-Donations 41 Deductions-Employees 11 Deductions-Retirement 12 Deductions-TravelExpenses 17 DeemedCapital-DisposalofShares 27 DeemedEmployees 8 Directors-PAYE 27 DividendsTax 3 DonationsTax 47 DoubleTaxationAgreements 30 andWithholdingTaxes EffectiveTaxRate 4 EnvironmentalExpenditure 39 EstateDuty 47 ExchangeControlRegulations 38 ExecutorsRemuneration 47 Exemptions-Individuals 11 FarmingIncome 40 FringeBenefits 14 HotelAllowances 18 IndustrialPolicyProjects 26 InterestRates-Changes 35 IRP5Codes 42 IT14SourceCodes 44 LearnershipAllowance 26 MarriedinCommunity 46 ofProperty MedicalAidRebates/Credits 5 MedicalExpenseDeduction/Credit 13 NationalCreditAct 46 Non-Residents 32 OfficialInterestRates andPenalties 34 PassiveHoldingCompanies 41 Patent/IntellectualProperty Pre-PaidExpenditure Pre-ProductionInterest Pre-TradingExpenditure PrimeOverdraftRates...
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