Text of remaining provisions of allied acts referred to in incometax act 1. Tax alert revision of rules relating to debt reductions subject the taxation laws amendment bill, 2017 the tlab, 2017, introduced on 25 october 2017, includes amendments to section 19 of the income tax act, 1962 act no. The relevant legislation applicable to businesses and individuals in south africa in relation to tax matters can be found under this section. All income tax information contained in this document is summarized by kpmg services pty limited, the south africa member firm affiliated with kpmg international cooperative kpmg international, a swiss entity, based on the income tax act, no 58 of 1962 as amended. South africa has a residencebased income tax system which has the effect that. All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. Article 33 of the 2015 supplementary budget act no. Should the test be met you will be tax resident in south africa for the sixth tax year. Consequently, this dissertation conducts an analysis of the relevance and appropriateness of south africa s source rules pertaining to software arrangements as contained in section 9 of the income tax act ita and as espoused in the common law. The value added tax act imposes a 15 percent tax on the value of goods or services supplied by a vendor, imported goods, or services provided by a resident supplier or one carrying out business outside of south africa to a resident of south africa who uses the services in south africa vat act section 71. With acts you are guaranteed the latest and most up to date resource for your legislative needs.
However the increase will only become effective once it has been amended in the income tax act which normally happens at the end of the year. An evaluation of income tax incentives available to the south. Section page contents division one 111 income tax act, 1961 page u arrangement of sections i3 u text of the income tax act, 1961 as amended by the finance act, 2011 1. Consequently, this dissertation conducts an analysis of the relevance and appropriateness of south africas source rules pertaining to software arrangements as contained in section 9 of the income tax act ita and as espoused in the common law. The 2015 tax statistics publication is compiled with the latest available data from the south african revenue service sars and national. Jutas clinical guide for midwives 1e webpdf isbn 9780702197345. The compilation of the tax chronology of south africa.
Sections 75 to 90 of the tax administration act contain an advance tax ruling atr system in sars. Evaluation of the source rules as contained in section 9. An atr system is intended to promote clarity, consistency and certainty in respect of the interpretation and application of a tax act to an applicant. Nonprofit law in south africa council on foundations. Pdf an evaluation of the turnover tax system in south africa. In 2015, various discretionary powers afforded to the commissioner of sars in the context of assessment provisions contained in the income tax act, no 58 of 1962 act were removed in order to formalise the move towards income tax selfassessment in south africa. An act to consolidate and amend the law relating to the imposition, assessment and collection of tax on incomes. Act 2 of 2016 amended by taxation laws amendment act 25 of 2015. This realignment was done against the backdrop of international research performed as part of the.
Income tax in south africa was first introduced in 1914 with the introduction of the income tax act no 28, an act that had its origins in the new south wales act of 1895. Income tax act chapter 470 revised edition 2018 2012 published by the national council for law reporting with the authority of the attorneygeneral. The motivation behind this seems to have been, in part, the fact south african resident companies are not subject to dividends tax. 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. Income from businesses where foreign exchange loss or gain is realized. The following acts are examples of the primary legislation sars administers. Taxation is a means whereby the state collects funds to pay for public services. The income tax amendment act, 2018 national assembly of. Section 49e of the income tax act, 1962, is hereby.
Short title this act may be cited as the income tax act. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. It3b certificate of income investments property rights and royalties external form. The south african revenue service now asks specific questions to the above effect in your personal income tax return and has become a lot more aware and active in enforcing the residency tests. The types of publications covered by the term government publications will include green and white papers, bills, statutes or acts, amendments to acts, regulations and government notices, all of which are published in the government and provincial gazettes. 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. Mandy barends, eldoret gerber, christelle groenewald, theresa gumbi, selwyn jacobs. Incometax act zimbabwe legal information institute.
Introduction to taxation taxes are the price we pay for a civilized society. Included in this legislation are various tax acts which the south african revenue service administers. Turnover tax was introduced into the income tax act. Cliffe dekker hofmeyr tax treatment of doubtful debts to be. Nm nene at his annual budget speech vote announced the increase from 45ckwh to 95ckwh increase of the incentive. Pwc south africa, that gives informed commentary on current.
As we should all be aware the income tax act 58 of 1962 the tax act, in the form of various amendments over the last few years, has been changed significantly in the way the south african revenue services has looked at the tax deductibility of interest. 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. Amended by tax administration laws amendment act 44 of 2014 by. To amend the income tax act, 1962, so as to amend, delete and insert definitions. Income tax act 58 of 1962 south african government. 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. At present, south africa produces approximately 61.
Guide on the taxation of foreigners working in south africa. 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. There has been a great deal of media attention on the proposed amendments to the income tax act in respect of the group reorganisation provisions, and, more particularly, the taxation of intragroup transactions in terms of section 45 of the income tax act, no. Credit where tax on nonexecutive, directors fees has been withheld. All tax laws should conform to the maxims of taxation equity 1. The value added tax act, 2014 the port service charges act cap 264 the motor vehicle tax registration and transfer. The income tax act, 1981 act 24 of 1981 of the national assembly of south west africa, hereinafter referred to as the act, shall, subject to the provisions of this act and in so far as the firstmentioned act applies to natural persons, apply also to.
As from 1 january 2016, section 12b of the income tax act south africa was amended from a threeyear 50% 30% 20% accelerated depreciation allowance on renewable energy to an even quicker depreciation allowance of just one year 100%. Section page contents division one 111 incometax act, 1961 page u arrangement of sections i3 u text of the incometax act, 1961 as amended by the finance act, 2011 1. In terms of the provisions of section 6 of the south african revenue service act, 1997. Section 24i deferral of exchange gains and losses may 2015 issue 188. Be it enacted by the parliament of the republic of south africa, as follows. As from 1 march 2015 interest from a south african source paid to a nonresident will be. Credit where tax on commissions paid by insurers and estate agents to freelance agents has been withheld. Evaluation of the source rules as contained in section. South african tax legislation the sa institute of tax. Income tax act 21 of 1995 income t ax act 36 of 1996 revenue laws amendment act 46 of 1996 general law amendment act 49 of 1996 income tax act 28 of 1997 south african revenue service act 34 of 1997. An act to provide for the taxation of incomes and matters connected therewith. 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 equity shares and voting rights in the foreign company declaring the dividend.
It is the national governmentas main source of income and is imposed by the income tax act no. Cliffe dekker hofmeyr tax treatment of doubtful debts to. The act was amended by the income tax amendment act 3 of 2011, which was promulgated by government notice 792011 gg 4732. The form of tax that people generally associate with the concept of income tax is a. On the 25th of february 2015 the minister of finance, he honorable mr. Broadly speaking, tax residence can be established through either. Note that the various amendment acts are available in pdf format at sars.
Compensation for occupational injuries and diseases act. The act has gone through numerous amendments with the act presently in force is the income tax act no 58 of 1962 which contains provisions for four different types of income tax. 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. As you will gather from learning unit 1 of this tutorial letter, the income tax act, no. These are the fundamental laws to be read in conjunction with their respective regulations and finance acts. Tax preferred savings accounts to be made available. Amended by tax administration laws amendment act 23 of 2015. In addition, dividends paid by south african resident companies are generally not subject to income tax or capital gains tax. About 40 per cent of the relief goes to south africans earning below r250 000 per year. Jan 07, 2020 the types of publications covered by the term government publications will include green and white papers, bills, statutes or acts, amendments to acts, regulations and government notices, all of which are published in the government and provincial gazettes.
Interpretation in this act, unless the context otherwise requires. Chapter 470 income tax act arrangement of sections part i preliminary section 1. Income tax act 24 of 1981 legal assistance centrenamibia. Sars administers a wide range of legislation in terms of part 1 and schedule 1 to the south african revenue service act, 1997. Amends item 15 of schedule 1 to the stamp duties act, no. Sars administers a wide range of legislation in terms of part 1 and schedule 1 to the south african revenue service act.
626 483 1325 327 1145 845 30 1608 176 1289 145 1464 243 601 667 1382 952 705 802 1469 447 1229 1446 1312 467 244 1209 816 1336 497 1031 594 948 897 1134