Monthly Archive for: ‘September, 2020’

Personal income tax Relief through an increase in the brackets and rebates. Medical tax credits Increase in medical credits. Foreign remuneration exemption Exemption will be limited to R1.25m from 1 March 2020. Corporate interest on debt Deductions to be limited to combat base erosion and profit shifting.  Corporate assessed losses Offset against taxable income limited to 80% of taxable income. …

CGT is payable on capital gains that arise by the following persons: Residents are subject to CGT on all assets including overseas assets Non-residents are subject to CGT on immovable property or any right or interest in a property situated in South Africa and any asset of a permanent establishment through which a trade is carried on in South Africa …

The following are the main exclusions from CGT: Primary residences with capital gains up to R2 million Personal use assets Retirement benefits Long-term assurance Small business assets with capital gains up to R1.8 million (applicable when a person is over the age of 55 where the maximum market value of the small business assets does not exceed R10 million Annual …

A capital gain or loss is calculated separately in respect of each asset disposed. Once determined, gains or losses are combined for that year of assessment and if it is: an assessed capital loss, it is carried forward to the following year, or a net capital gain, it is multiplied by the inclusion rate and included in taxable income The …

The purchaser must withhold CGT on the purchase price where assets are purchased from a non-resident except where the amount payable by the purchaser is less than R2 million. This withholding tax is not a final tax and is merely a prepayment of the expected CGT. The following withholding tax rates are applicable and are based on the proceeds on …

*a building not exceeding cost of R300 000 or an apartment not exceeding a cost of R350 000

Carbon tax became effective from 1 June 2019. The tax is being implemented in a phased manner, taking into account SA’s NDC commitments to reduce greenhouse gas emissions. The first phase will be from 1 June 2019 to 31 December 2022, and the second phase from 2023 to 2030. This ensures alignment with our NDC commitments under the Paris Agreement. …

Resident companies (excluding personal service provider) Non-resident companies/ Branch profits Personal service provider companies Combined tax rate of resident company (as a percentage) Note: Assumes all profits are declared as a dividend. Dividends Tax is the liability of the shareholder, while the normal tax is a company liability.

*Estates and cumulative donations in excess of R30m will be taxed at 25