The provisions of section 101gc allows a south african tax resident who is. However, assuming the foreign national is not a south african tax resident, non south african sourced employment income, investment income and capital gains excluding gains derived from the disposal of immovable property held in south africa will not be subject to tax. Examples of amounts an individual may receive, and from which the taxable income is determined, include remuneration income from employment, such as, salaries, wages, bonuses, overtime pay, taxable. Republic of south africa explanatory memorandum on the employment tax incentive amendment bill, 2016 draft 23 september 2016 w. There are no special tax concessions for expatriates.
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. Cases and materials 4ed outdated material has been removed and the most important of new cases have been selected for inclusion in this edition. 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. Site and paye are the two elements of employees tax. South africa has a residencebased income tax system which has the effect that.
Small business corporations those that comply with various requirements and have a gross income of less than zar 20 million pay tax at rates between 0% and 28%. In this way, income tax is collected as soon as the taxpayer has earned the income and is offset against the final income tax that is due on assessment. The income tax act, 58 of 1962, contains several socalled group relief provisions in terms whereof corporate restructures can take place on a tax. The following acts are examples of the primary legislation sars administers. However, see comments below in respect of wht on dividends in the form of a dividends tax. Search for library items search for lists search for contacts search for a library.
The consolidated income tax act is available, in a pdf version, under the tax heading on the university of pretoria. Taxation in south africa may involve payments to a minimum of two different levels of government. It is also not a binding general ruling under section 89 of chapter 7 of the tax administration act. South african residents account for tax on their worldwide receipts and accruals, if they are tax resident on the basis of being ordinarily resident or through the physical presence test. As a result, the income tax act has created three mechanisms to solve this problem. Be it enacted by the parliament of the republic of south africa, as.
The income tax act, 1962, valueadded tax act, 1991 and other tax acts may be accessed on the sars website. Dividends paid or that become payable by a south african company to a shareholder are subject to a 15% withholding tax. Amendment of section 2 of act 40 of 1949, as amended by. Short title and commencement this act may be cited as the income tax act. The consolidated income tax act is available, in a pdf version, under the tax. Laws act of 2016 amended by revenue laws amendment act 2 of 2016. South africa pkf assurance, audit, tax, advisory and. Before then, many tax changes had been made and they continue to be made. Investment incentives in zimbabwe are outlined in the income tax act chapter 23. Real estate investment trusts reits are subject to a special tax regime in south africa. This tax incentive is a national first and its successful inclusion in a tax return in 2016 creates the first fiscal reward for biodiversity conservation in south africa. Put simply, a reit may deduct for income tax purposes. Issue successive corporate reorganisation transactions the south african. If foreign employers in south africa do not deduct paye, local.
The new income tax act act 896 has already witnessed two amendments between september 2015, when it was first enacted by parliament, and february 2016. This podcast explores section 23 of the income tax act, which limits or prohibits the deduction of amounts that may otherwise have been deductible under section 11a or other sections. 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. Introduction to taxation taxes are the price we pay for a civilized society. Foreign dividends are subject to income tax in the hands of a south african. This is a general guide providing an overview of the most significant tax legislation administered in south africaby the commissioner for the south african revenue service sars, namely, the income tax act. South african income tax 2018 by m stiglingh and others, published by lexisnexis 2. Be it enacted by the parliament of the republic of south africa, as follows. On wednesday 24 february 2016, the finance minister, announced a special voluntary disclosure programme svdp for taxpayers to regularize their offshore assets and the related income hitherto undeclared to sars.
Income tax is the normal tax which is paid on your taxable income. When addressing the related parties definition, the south african legislation refers to the concept of a connected person that is defined in section 1 of the sa income tax act and further guidance is provided for in interpretation note 67 to the sa income tax act. This edition contains amendments tothe finance act 2016 dated 20 september 2016 disclaimer while all reasonable care has been taken in. Taxation and investment in south africa 2016 deloitte. This is of particular important when applying the provisions of section 35a of the income tax act withholding tax. Trusts other than special trusts are taxed at a rate of 41 %. South african institute of chartered accountants integritax newsletter income tax and vat acts online. The svdp applies both to income tax defaults and excon contraventions.
They are tabled by the minister of finance in the national assembly as amendment. Taxation is a means whereby the state collects funds to pay for public services. South africa lesotho swaziland south sudan somalia somaliland cameroon africa tax guide 201819. Income tax act, 1962 customs and excise act, 1964 value. Nonresidency in terms of the income tax act introduction there is often confusion as to whether or not an individual, company or trust is a resident or nonresident for income tax purposes.
Branches of foreign companies are taxed on their south africansource income at a rate of 28 %. These circumstances are not exclusive to south africa. The bill proposes to amend the income tax act, 1962, the customs and excise act, 1964. Trust law in south africa by wd geach, published in 2017 by. Act 5 of 2001 is available in pdf format from the sars web site at sars. The south african income tax system has a bias towards debt and this bias 1 distorts the financing and investment decisions of firms. We are the leading resource for freely available legislation in south africa and are used daily by. Income tax act 58 of 1962 south african government. Subject to certain exceptions, local dividends are fully exempt from income tax in the hands of the recipient. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. Jutas clinical guide for midwives 1e webpdf isbn 9780702197345. Taxation laws amendment bill 17b of 2016 national treasury. The taxation laws amendment act 15 of 2016 intends.
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