Page 3 - Nexia Cape Town 2018 TG Digital
P. 3
INDEX
2018/2019 Budget Highlights � � � � � � � � � � � � � � � � � � � � � 2 Green Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 43
Capital Gains Tax (CGT) � � � � � � � � � � � � � � � � � � � � � � � � � 27 — Carbon tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 43
— Persons subject to CGT � � � � � � � � � � � � � � � � � � � � � � � 27 — Tyre levy � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 43
— Exclusions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 27 — “Environmental” deductions/allowances � � � � � � � � � 43
— Calculation and inclusion rates � � � � � � � � � � � � � � � � � 27 — Tax allowance for energy-efficiency savings � � � � � � � � 43
— Withholding tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � 28 Interest Rates � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 63
Capital Incentive Allowances � � � � � � � � � � � � � � � � � � � � � 32 IRP 5 Codes � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 52
Companies Normal Taxation � � � � � � � � � � � � � � � � � � � � � � 19 Learnership Allowances � � � � � � � � � � � � � � � � � � � � � � � � � 49
Comparative Tax Rates� � � � � � � � � � � � � � � � � � � � � � � � � � � 3 Lump Sum Benefits � � � � � � � � � � � � � � � � � � � � � � � � � � � � 12
Connected person definition for income tax � � � � � � � � � � 30 — Retirement fund lump sum withdrawal benefits � � � � � 12
— Diagram illustrating the rate for determining — Retirement fund lump sum benefits or severance
persons who are related within the third degree benefits � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 12
of consanguinity � � � � � � � � � � � � � � � � � � � � � � � � � � � � 31 Natural Person Tax Rates � � � � � � � � � � � � � � � � � � � � � � � � � 4
Deductions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 10 Pay As You Earn (PAYE) � � � � � � � � � � � � � � � � � � � � � � � � � 14
— Contributions to pension, provident and — General provisions � � � � � � � � � � � � � � � � � � � � � � � � � � 14
retirement annuity funds� � � � � � � � � � � � � � � � � � � � � � 10 — Common law dominant impression test grid � � � � � � � 16
— Medical and disability expenses � � � � � � � � � � � � � � � 10 — Personal service providers process flow� � � � � � � � � � � 18
Deductions: Sundry � � � � � � � � � � � � � � � � � � � � � � � � � � � � 46 — The employee is defined as a person who: � � � � � � � � 15
— Restraint of trade � � � � � � � � � � � � � � � � � � � � � � � � � � � 46 Penalties: Administrative Non-compliance � � � � � � � � � � � 54
— Leasehold improvements � � � � � � � � � � � � � � � � � � � � � 46 — Fixed amount penalties � � � � � � � � � � � � � � � � � � � � � � 54
— Pre-trade expenditure � � � � � � � � � � � � � � � � � � � � � � � � 46 — Percentage based penalties � � � � � � � � � � � � � � � � � � � 55
— Research and Development � � � � � � � � � � � � � � � � � � � 46 — Understatement penalties � � � � � � � � � � � � � � � � � � � � 55
Dispute Resolution Process � � � � � � � � � � � � � � � � � � � � � � 57 Provisional Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 13
Dividends Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 25 Public Benefit Organisations (PBO)� � � � � � � � � � � � � � � � � 24
Donations Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 42 Residence Based Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � 34
— Principal exemptions � � � � � � � � � � � � � � � � � � � � � � � � 42 — Definition of resident � � � � � � � � � � � � � � � � � � � � � � � � 34
— Rates � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 42 — Controlled Foreign Companies (CFC) � � � � � � � � � � � � � 34
Employment Tax Incentive � � � � � � � � � � � � � � � � � � � � � � � 47 — Foreign dividends (including deemed dividends) � � � � 35
Estate Duty � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 41 — Foreign tax credits � � � � � � � � � � � � � � � � � � � � � � � � � � 35
— Executor’s remuneration � � � � � � � � � � � � � � � � � � � � � � 41 — Average exchange rates for a year of assessment � � � 39
Exchange Control: Non-residents � � � � � � � � � � � � � � � � � � 36 — Physical presence test for a person not ordinarily
— Financial assistance in South Africa � � � � � � � � � � � � � 36 resident: � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 38
— Loans from non-resident shareholders to residents � � 36 Retention of Records � � � � � � � � � � � � � � � � � � � � � � � � � � � 58
— Capital transactions � � � � � � � � � � � � � � � � � � � � � � � � � 37 Ring-fencing of Assessed Losses � � � � � � � � � � � � � � � � � � 44
— Dividend payments to non-residents � � � � � � � � � � � � � 37 — Checklist (flowchart) for the application of the
— Director fee payments to non-residents � � � � � � � � � � � 37 ring-fencing provisions � � � � � � � � � � � � � � � � � � � � � � � 45
Exchange Control: Residents � � � � � � � � � � � � � � � � � � � � � 40 Small Business Corporations � � � � � � � � � � � � � � � � � � � � � 22
— Foreign capital investments � � � � � � � � � � � � � � � � � � � 40 Sundry Taxes � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 47
— Single discretionary allowance � � � � � � � � � � � � � � � � � 40 — Securities Transfer Tax � � � � � � � � � � � � � � � � � � � � � � � 47
— (in addition to foreign capital allowance) � � � � � � � � � 40 — Skills Development Levy � � � � � � � � � � � � � � � � � � � � � 47
— Study allowances � � � � � � � � � � � � � � � � � � � � � � � � � � � 40 — Unemployment Insurance Fund Contributions � � � � � � 47
— Emigration limits � � � � � � � � � � � � � � � � � � � � � � � � � � � 40 Tax Free Investments � � � � � � � � � � � � � � � � � � � � � � � � � � � 11
Farming Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 26 Tax Season Deadlines 2018/19 � � � � � � � � � � � � � � � � � � 50
— Valuation of livestock and produce � � � � � � � � � � � � � � 26 — Income tax returns � � � � � � � � � � � � � � � � � � � � � � � � � � 50
— Capital development expenditure � � � � � � � � � � � � � � � 26 — Provisional tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 50
— Special depreciation allowance � � � � � � � � � � � � � � � � 26 — Value-added tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � 51
— Rating formula � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 26 — Payroll tax returns � � � � � � � � � � � � � � � � � � � � � � � � � � 51
Finance Repayment Factors � � � � � � � � � � � � � � � � � � � � � � 62 Transfer Duty on Immovable Property � � � � � � � � � � � � � � � 49
Fringe Benefits � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 6 Trusts � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 20
— Travelling allowance for the tax year ending 2019 � � � � 6 — Tax rates � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 20
— Right of use of motor vehicle � � � � � � � � � � � � � � � � � � � 7 — Interest-free and low-interest loans to a trust � � � � � � 20
— Subsistence allowances and advances � � � � � � � � � � � 8 — Other anti-avoidance provisions � � � � � � � � � � � � � � � � 21
— Residential accommodation � � � � � � � � � � � � � � � � � � � � 8 Turnover Tax for Micro Businesses � � � � � � � � � � � � � � � � � 23
— Low-cost housing � � � � � � � � � � � � � � � � � � � � � � � � � � � 9 Value-Added Tax (VAT) � � � � � � � � � � � � � � � � � � � � � � � � � � 29
— Interest-free or low-interest loans � � � � � � � � � � � � � � � � 9 — Key features � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 29
— Bursaries � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 9 Wear and Tear Allowances � � � � � � � � � � � � � � � � � � � � � � � 60
— Medical fund contributions � � � � � � � � � � � � � � � � � � � � � 9 Withholding Tax (other) � � � � � � � � � � � � � � � � � � � � � � � � � 28
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