One exception to this is the change in the corporate tax rate from 33% to 32% which is. Tbe rates of normal tax to be levied in terms of section 52 of the income tax act, 1962 act no. South africa income tax act 10 council on foundations. The purpose of the provision is to disallow the deduction in the hands of a south african resident who licenses ip from a nontaxable person, including a nonresident. Included in this legislation are various tax acts which the south african revenue service administers. Evaluation of the source rules as contained in section. Learnership agreement deductions in terms of section 12h. Eti act means the employment tax incentive act 26 of 20. South african income tax tables 20 south african tax guide. African legal information institute saflii on laws of south africa. Paragraph 2 of the eighth schedule states that a nonresident company is liable for capital gains tax in south africa if, on disposal. O amend the taxation laws amendment act, 2004, so as to change an effective date. The provisions of this act concerning resident companies apply also to profit making state agencies. Employment tax incentive act 26 of 20 south african.
These taxes are collected and paid into the national revenue fund. Running through the maze of tax consequences for corporate. South africa has recently amended section 31 of the income tax act 58 of 1962. The income tax act, no 58 of 1962 defines a company under south african law. Acknowledging that the mining tax system in south africa has evolved over many years by case law and in response to various geological, economic, social and environmental challenges, the dtc was. As further alluded to above, these group relief provisions go much further than merely to negate income tax effects it also extends to the other applicable ancillary taxes see specifically s 825 of the value. 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. Tax administration act 28 of 2011 south african government. Be it enacted by the parliament of the republic of south africa, as. The income tax practice manual is the only guide to the interpretation of the income tax act based on. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. The title of this order is the double taxation relief taxes on income south africa amendment order, 20 and. Income tax act 58 of 1962 the act securities transfer tax act 25 of 2007 the stt act south africa sa south african revenue service sars tax administration act 28 of 2011 taa transfer duty act 40 of. 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.
A comprehensive guide to income tax policy, practice and procedure, based on sars practice. A person may receive remuneration benefits such as maternity leave or retention bonuses by virtue of their employment contact. Cgt not only affects assets purchased and sold after 1 october 2001 but it also affects assets acquired prior to this date and disposed of thereafter. However, the nonresidents tax position may be affected by an agreement for the avoidance of. In south africa, any person as defined in section 1 of the income tax act carrying on a trade will be able to deduct expenses and. South african tax legislation the sa institute of tax. Income tax act 24 of 1981 legal assistance centrenamibia. After 1990, south africa implemented a number of changes in south african income tax focussing on smes. 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. A nonresident is only taxed on amounts received by or accrued to him or her from a source within south africa. Taxation may involve payments to a minimum of two different levels of government. The relevant legislation applicable to businesses and individuals in south africa in relation to tax matters can be found under this section.
The tax was introduced in march 2011 at r100 and increased to r125 in 20, r140 in 2016 and r150 in. South african income tax rates from 2007 to 20 individuals rates 20062007 20072008 20082009 20092010 20102011 20112012 201220 0 100 000 18% 0 112 500 18% 0 122 000 18% 0 2. Taxation in south africa 2019 i taxation in south africa 201 9. Income tax act 58 of 1962 south african government. Sars administers a wide range of legislation in terms of part 1 and schedule 1 to the south african revenue service act, 1997. Legal succession to the south african transport services act 9 of 1989 income tax act 101 of 1990 income tax act 129 of 1991 taxation laws amendment act 6 of 1991.
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. Mining tax published february 20 armgoldharmony freegold joint venture v csars 2012 74 satc 351, delivered on 1 october 2012, deals with the treatment of capex when one. Proceedings of the 20 saaa biennial conference tax007. We are the leading resource for freely available legislation in south africa and are used daily by thousands. The income tax amendment act 20, passed by parliament on 21 october 20 and assented to by the president on 5 november 20, was published in the government gazette. N 392 of 20 commencement notice it is notified for general information that 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. South african income tax rates from 1981 to 20 more recent rates are found on the current rates page. Taxpayers may have avoided any increases in income tax or value added tax vat in the 20 budget but south africans will have to deal with rises in sin taxes and fuel levies, coupled with a. The taxation laws amendment act 15 of 2016 intends. Amended by tax administration laws amendment act 39 of 20 amended. In terms of the south african revenue service act no.
The rates of normal tax to be levied in terms of section 52 of the income taxact, 1962 act no. This site is still being updated therefore we can refer to it as acca advanced taxation p6. However, due to unforeseen circumstances the contractual obligations may. Act 4 of 20 gg 5206 deemed to have come into force a in the. The initial content of the notes have been prepared using acca advanced taxation p6 south africa syllabus. Income tax act 24 of 1981 og 4580 came into force on date of publication. The 20 tax statistics publication is compiled with the latest available data from the. The following acts are examples of the primary legislation sars administers. Evaluation of the source rules as contained in section 9 of the south african income tax act as relating to software in the context of the digital economy.