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
                              1
   1   2   3   4   5   6   7   8