Page 3 - GA Maclachlan Tax Guide 2024
P. 3
INDEX
Budget Highlights � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 2 — Residential accommodation � � � � � � � � � � � � � � � � � � � � 8
Capital Gains Tax (CGT) � � � � � � � � � � � � � � � � � � � � � � � � � 27 — Low-cost housing � � � � � � � � � � � � � � � � � � � � � � � � � � � 9
— Persons subject to CGT � � � � � � � � � � � � � � � � � � � � � � 27 — Interest-free or low-interest loans � � � � � � � � � � � � � � � � 9
�
— Exclusions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 27 — Bursaries � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 9
— Calculation and inclusion rates � � � � � � � � � � � � � � � � � 27 — Medical fund contributions � � � � � � � � � � � � � � � � � � � � � 9
— Withholding tax – prepayment CGT � � � � � � � � � � � � � � 28 Home Office Cost� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11
Capital Incentive Allowances � � � � � � � � � � � � � � � � � � � � � 32 — Employees: � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11
Carbon Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 43 — Independent contractors: � � � � � � � � � � � � � � � � � � � � � 11
Companies Normal Taxation � � � � � � � � � � � � � � � � � � � � � � 19 Interest Rates � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 63
Comparative Tax Rates� � � � � � � � � � � � � � � � � � � � � � � � � � � 3 IRP 5 Codes � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 52
Connected person definition for income tax � � � � � � � � � � 30 Learnership Allowances � � � � � � � � � � � � � � � � � � � � � � � � � 49
— Diagram illustrating the rule for determining Lump Sum Benefits � � � � � � � � � � � � � � � � � � � � � � � � � � � � 12
persons who are related within the third degree — Retirement fund lump sum withdrawal benefits � � � � � 12
of consanguinity � � � � � � � � � � � � � � � � � � � � � � � � � � � 31 — Retirement fund lump sum benefits or severance
�
Crypto Assets � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 43 benefits � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 12
Deductions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 10 Natural Person Tax Rates � � � � � � � � � � � � � � � � � � � � � � � � � 4
— Contributions to pension, provident and Notes � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 64
retirement annuity funds� � � � � � � � � � � � � � � � � � � � � � 10 Pay As You Earn (PAYE) � � � � � � � � � � � � � � � � � � � � � � � � � 14
— Medical and disability expenses � � � � � � � � � � � � � � � 10 — General provisions � � � � � � � � � � � � � � � � � � � � � � � � � � 14
Deductions: Sundry � � � � � � � � � � � � � � � � � � � � � � � � � � � � 46 — The employee is defined as a person who: � � � � � � � � 15
— Restraint of trade � � � � � � � � � � � � � � � � � � � � � � � � � � � 46 — Common law dominant impression test grid � � � � � � � 16
— Leasehold improvements � � � � � � � � � � � � � � � � � � � � � 46 — Personal service providers process flow� � � � � � � � � � � 18
— Pre-trade expenditure � � � � � � � � � � � � � � � � � � � � � � � � 46 Penalties: Administrative Non-compliance � � � � � � � � � � � 54
— Research and Development � � � � � � � � � � � � � � � � � � � 46 — Fixed amount penalties � � � � � � � � � � � � � � � � � � � � � � 54
Dispute Resolution Process � � � � � � � � � � � � � � � � � � � � � � 57 — Percentage based penalties � � � � � � � � � � � � � � � � � � � 55
Dividends Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 25 — Understatement penalties � � � � � � � � � � � � � � � � � � � � 55
Donations Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 42 Provisional Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 13
— Principal exemptions � � � � � � � � � � � � � � � � � � � � � � � � 42 Public Benefit Organisations (PBO)� � � � � � � � � � � � � � � � � 24
�
— Rates � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 42 Residence Based Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � 34
Employment Tax Incentive � � � � � � � � � � � � � � � � � � � � � � � 47 — Definition of resident � � � � � � � � � � � � � � � � � � � � � � � � 34
Estate Duty � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 41 — Controlled Foreign Companies (CFC) � � � � � � � � � � � � � 34
— Executor’s remuneration � � � � � � � � � � � � � � � � � � � � � � 41 — Foreign dividends (including deemed dividends) � � � � 35
Exchange Control: Non-residents � � � � � � � � � � � � � � � � � � 36 — Foreign tax credits � � � � � � � � � � � � � � � � � � � � � � � � � � 35
— Financial assistance in South Africa � � � � � � � � � � � � � 36 Retention of Records � � � � � � � � � � � � � � � � � � � � � � � � � � � 58
— Loans from non-resident shareholders to residents � � 36 Ring-fencing of Assessed Losses � � � � � � � � � � � � � � � � � � 44
— Capital transactions � � � � � � � � � � � � � � � � � � � � � � � � � 37 — Checklist (flowchart) for the application of the
— Dividend payments to non-residents � � � � � � � � � � � � � 37 ring-fencing provisions � � � � � � � � � � � � � � � � � � � � � � � 45
— Director fee payments to non-residents � � � � � � � � � � � 37 Small Business Corporations � � � � � � � � � � � � � � � � � � � � � 22
— Ceasing to be a resident� � � � � � � � � � � � � � � � � � � � � � 37 Sundry Taxes � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 47
— Physical presence test for a person not ordinarily — Securities Transfer Tax � � � � � � � � � � � � � � � � � � � � � � � 47
resident: � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 38 — Skills Development Levy � � � � � � � � � � � � � � � � � � � � � 47
— Average exchange rates for a year of assessment � � � 39 — Unemployment Insurance Fund Contributions � � � � � � 47
Exchange Control: Residents � � � � � � � � � � � � � � � � � � � � � 40 Tax Season Deadlines 2024/2025 � � � � � � � � � � � � � � � � 50
— Foreign capital investments � � � � � � � � � � � � � � � � � � � 40 — Income tax returns � � � � � � � � � � � � � � � � � � � � � � � � � � 50
— Single discretionary allowance — Provisional tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 50
(in addition to foreign capital allowance) � � � � � � � � � 40 — Value-added tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � 51
— Study allowances � � � � � � � � � � � � � � � � � � � � � � � � � � � 40 — Payroll tax returns � � � � � � � � � � � � � � � � � � � � � � � � � � 51
— Emigration limits � � � � � � � � � � � � � � � � � � � � � � � � � � � 40 Transfer Duty on Immovable Property � � � � � � � � � � � � � � � 49
Farming Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 26 Trusts � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 20
— Valuation of livestock and produce � � � � � � � � � � � � � � 26 — Tax rates � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 20
— Capital development expenditure � � � � � � � � � � � � � � � 26 — Interest-free and low-interest loans to a trust � � � � � � 20
— Special depreciation allowance � � � � � � � � � � � � � � � � 26 — Other anti-avoidance provisions � � � � � � � � � � � � � � � � 21
— Rating formula � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 26 Turnover Tax for Micro Businesses � � � � � � � � � � � � � � � � � 23
Finance Repayment Factors � � � � � � � � � � � � � � � � � � � � � � 62 Value-Added Tax (VAT) � � � � � � � � � � � � � � � � � � � � � � � � � � 29
Fringe Benefits � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 6 — Key features � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 29
�
— Travelling allowance � � � � � � � � � � � � � � � � � � � � � � � � � � 6 Wear and Tear Allowances � � � � � � � � � � � � � � � � � � � � � � � 60
— Right of use of motor vehicle � � � � � � � � � � � � � � � � � � � 7 Withholding Tax (other) – Final � � � � � � � � � � � � � � � � � � � � 28
— Subsistence allowances and advances � � � � � � � � � � � 8
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