Author Archive for: ‘Shannon’

Calculated on the value of immovable property Payable within six months after the transaction is entered into Exemptions apply with the most notable when the seller is a VAT vendor Where a VAT vendor purchases property from a non-vendor, the notional input tax is calculated by multiplying the tax fraction (15/115 (14/114 before 1 April 2018)) by the lesser of …

Tax rates applicable to trusts are as follows: Note: A special trust is a trust created solely for the benefit of someone who suffers from a disability that prevents such person from earning sufficient income for their maintenance or from managing their own financial affairs. A special trust can also be created by way of a testamentary trust whereby relatives …

With effect 1 March 2017 loans made to a trust by a natural person, or at the instance of that person, a company in relation to which that person is a connected person, and where that person or company is a connected person in relation to the trust With effect 19 July 2017 loans by a natural person or a …

Anti-avoidance provisions exist to combat the use of trusts for income splitting and tax avoidance schemes. These provisions will normally be applicable where income accrues to a person other than the donor as a result of a donation, settlement or other disposition made (i.e. interest free loans). These provisions may apply where income accrues to the following persons: The donor’s …

Financial years ending on any date between 1 March 2020 and 28 February 2021 Financial years ending on any date between 1 March 2019 and 29 February 2020 Turnover tax for micro businesses is a simplified turnover-based tax system substituting income tax and Capital Gains Tax. A micro business may voluntarily register for VAT. Turnover tax is an elective tax …

The VAT system comprises of three types of supplies: Standard-rated supplies – supplies of goods and services subject to the VAT rate in force at the time of supply. With effect 1 April 2018 the VAT rate was increased from 14% to 15% Exempt supplies – supplies of certain services not subject to VAT. Vendors making exempt supplies are not …

Enterprises with a turnover of less than R1 000 000 in any period of 12 months are not obliged to register for VAT Enterprises with a turnover of less than R50 000 in any period of 12 months are not permitted to register for VAT VAT returns are generally submitted on a two monthly basis unless turnover in any period …

The following rates of wear and tear are allowed by SARS in terms of Interpretation Note 47: The acquisition of “small” items at a cost of less than R7 000 per item may be written off in full during the year of acquisition.

Royalties A withholding tax of 15% is payable when royalties from a South African source are paid to non-residents, subject to certain exempt Interest A withholding tax of 15% is payable when interest from a South African source are paid to non-residents, subject to certain exemptions. Foreign Entertainers and sportpersons A withholding tax of 15% on payments to foreign entertainers …