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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