South african income tax act 2017 pdf

The 2015 edition of notes on south african income tax will be added at the beginning of january 2015. Subject to certain exceptions, local dividends are fully exempt from income tax in the hands of the recipient. Income tax and vat acts online the income tax act, 1962, valueadded tax act, 1991 and other tax acts may be accessed on the sars website. Sep 04, 2017 in south africa sa, a tax directive must generally be obtained from the south african revenue service sars before any tax withholding is operated against gains from share plan awards i. Taxation may involve payments to a minimum of two different levels of government. In draft legislation made public in july 2016, it was proposed that low interest loans to trusts by related parties including founders and beneficiaries would create a tax cost for the lender equivalent to 8% of the capital value of the loan less any interest actually paid. The rebate is not reduced where a person has taxable income for less than the standard south african tax year. The law also seeks to reduce fees on certain government services such as visas, work permits and airport fees for aircrafts.

Domestic law prior to 2001, section 101o of the act granted an exemption from income tax only to officers and crew members employed aboard any south african ship if they were outside. Proposed repeal of foreign employment income exemption july 26, 2017 in brief south african residents are entitled to an exemption for remuneration received or accrued with respect to services rendered outside south africa pursuant to section 101oii of. A person may apply to the commissioner for an extension. In south africa sa, a tax directive must generally be obtained from the south african revenue service sars before any tax withholding is operated against gains from share plan awards i.

The dividends are subject to a 15%20% dividends tax, which is withheld by the company paying the dividend and then paid over to sars on behalf of the taxpayer. These are the fundamental laws to be read in conjunction with their respective regulations and finance acts. Income tax is a tax levied on all income and profit received by a taxpayer which includes individuals, companies and trusts. Income tax act 90 of 1988 income tax amendment act 99 of 1988 income tax act 70 of 1989 legal succession to the south african transport services act 9 of 1989. Act, 2001 act no 38 of 2001, made the regulations set out in the schedule. The form of tax that people generally associate with the concept of income tax is a. South african inheritance tax, or estate duty, applies to all estates valued above a certain amount. South african taxpayers and the exemption on foreign income. South africans working overseas are often unsure about how they can benefit from south african tax exemptions on foreign income.

Short title and commencement this act may be cited as the income tax act, 1973 and shall, subject to the sixth. The information in this guide concerning income tax relates to. Revenue laws act 21 of 2018 amended by taxation laws amendment act 17 of 2017. With effect from the 2020 south african tax year, taxpayers under the age of 65 years may deduct from their tax liability a tax credit of zar310 per month for the first two beneficiaries and zar209 per month for each additional beneficiary, in respect of medical aid contributions made by themselves or their employer to an approved south african. Income tax act 58 of 1962ita as amended valueadded tax act 89 of 1991vat as amended. The nonprofit company can be established with or without members, but it must have at least three directors companies act section 3 1. The online library contains the backcatalogue works of phillip haupt from 2006 up to the, 2014 notes on south african income tax.

Objective of this book is to explain the income tax administration in india. If you are registered for income tax, you will be required to submit an annual income tax return to sars. The tax implication of ceasing to be a south african tax resident is that the taxpayer is deemed to have disposed of all capital assets other. The rebate is given against the tax calculated and not against. Global rewards update south africa new tax directive. Sars administers a wide range of legislation in terms of part 1 and schedule 1 to the south african revenue service act, 1997. The case dealt with an appeal brought by b taxpayer against the additional. The law aims to reaffirm the various changes in tax rates enacted in the taxation amendment act 2016 and which became effective from 1 january 2017. The value added tax act, 2014 the port service charges. South african institute of chartered accountants integritax newsletter income tax and vat acts online the income tax act, 1962, valueadded tax act, 1991 and other tax acts may be accessed on the sars website the consolidated income tax act is available, in a pdf version, under the tax heading on the university of pretoria, laws of sa consolidated legislation website.

Judgment was delivered in the tax court on 30 may 2017 in the matter of m v commissioner for the south african revenue service case number 14005, as yet unreported. On 3 november 2017, the tax court handed down its decision in b v the commissioner for the south african revenue services case no. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. The income tax act, 1962, valueadded tax act, 1991 and other tax acts may be accessed on the sars website. South african national government budget breakdown for 201920. It is only available in english and each licence only works on one computer, tablet or ipad. Effective june 30, 2017, a new tax directive form should be used. Income tax as the name denotes is a tax payable on a persons taxable income and is classified as a direct tax. The case dealt with the familiar question of whether proceeds had accrued in a particular year of assessment, even though payment was only received in a subsequent year of assessment. Saipa 2017 final south african institute of professional. Hoffmann v south african airways 2001 1 sa 1 cc 7 hereinafter the hoffmann case laws have two titles, a long official title, and a short title. Income tax act 58 of 1962 south african government. Estate duty in south africa applies to estates worth more than r3.

The 2019 year of assessment commonly referred to as a tax year runs from 1 march 2018 to 28 february 2019. Income received by or accrued to a nonresidents from a source within south africa the income tax treatment of overseas income application of oecd model double tax treaty to given situations explanation of antiavoidance regulations double taxation relief available to individuals. It should, therefore, not be used as a legal reference. Background a number of significant amendments affecting deceased persons and their deceased estates came into operation on 1 march 2016 and apply to persons dying on or after that date. The incometax act, 1961 is the charging statute of income tax in india. The south sudan government has enacted the 2017 2018 finance act the law. A south african saresident company is subject to corporate income tax cit on its worldwide income, irrespective of the source of the income. Free tax books download ebooks online textbooks tutorials. Income tax act 90 of 1988 income tax amendment act 99 of 1988.

In south africa, the cit rate applicable for corporate income of both resident and nonresident companies for tax years ending between 1 april 2020 and. Covid19 in south africa 10,015 cases and 194 deaths. Limitation of foreign employment income exemption applicable provision. The taxation laws amendment act 17 of 2017 intends.

With acts you are guaranteed the latest and most up to date resource for your legislative needs. Nonprofit law in south africa council on foundations. South african dividends natural persons who receive dividends from south african companies are exempt from normal income tax on the dividend income. Tax losses are an allowable deduction from taxable income for the current and the next nine succeeding years of income with effect from 1 january 2016. Law of succession and inheritance tax in south africa.

For income tax purposes, this guide has been updated to include the tax administration laws amendment act 22 of 2018, the taxation laws amendment act 23 of 2018 and the. The consolidated income tax act is available, in a pdf version, under the tax heading on the university of pretoria, laws of sa consolidated legislation website. South african income tax registration number, if such a number has been issued to that person. The 12l tax incentive, according to income tax act, 1962 act no. The following acts are examples of the primary legislation sars administers. It provides for levy, administration, collection and recovery of income tax.

The consolidated income tax act is available, in a pdf version, under the. The south sudan government has enacted the 20172018 finance act the law. Refinement of section 7c 29 august 2017 in brief section 7c of the income tax act, 1962 act no. Notes on south african income tax 2017 by phillip haupt, 9781684181711, available at book depository with free delivery worldwide. Income tax act, 1962 customs and excise act, 1964 value. Prior to 2001 the south african tax system was sourcebased, wherein. Acts online provides legislation, including amendments and regulations, in an intuitive, online format.

Section 24c of the income tax act, no 58 of 1962 act provides for an allowance in respect of future expenditure to be incurred under a contract. Study of the incometax, heads of income, tax audit, indirect tax, assessment of tax payable. Foreign dividends are subject to income tax in the hands of a south african shareholder, but exempt if the shareholder holds at least 10% of the. In draft legislation made public in july 2016, it was proposed that low interest loans to trusts by related parties including founders and beneficiaries would create a tax cost for the lender equivalent to 8% of the capital. Amends item 15 of schedule 1 to the stamp duties act, no. Law of succession and inheritance tax in south africa expatica. South african revenue service act 34 of 1997 government notice 1165 in government gazette 18257, dated 5 september 1997. The south african companies act of 2008, which came into force on may 1, 2011, provides for the incorporation of a nonprofit company, which is recognized as a separate category of company. M v commissioner for the south african revenue service 14005 2017 zatc 1 30 may 2017 download original files.

Proposed repeal of foreign employment income exemption july 26, 2017 in brief south african residents are entitled to an exemption for remuneration received or accrued with respect to services rendered outside south africa pursuant to section 101oii of the income tax act, 1962 act no. As a result, section 101o of the act granted an income tax exemption only in respect of foreign employment income earned by officers and crew members employed on board any south african ship if those. It is regulated by the provisions of the income tax act of 1993 and its regulations thereof. Kpmg confidential kenya fiscal guide 20172018 3 tax losses. Note that the various amendment acts are available in pdf format at sars. For income tax purposes, this guide has been updated to include the tax administration laws amendment act 22 of 2018, the.

However, see comments below in respect of wht on dividends in the form of a dividends tax. It is the national governmentas main source of income and is imposed by the income tax act no. Mar 02, 2018 section 24c of the income tax act, no 58 of 1962 act provides for an allowance in respect of future expenditure to be incurred under a contract. Constituents of south african taxation receipts for the tax year 201718.