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    Ismael Gouws
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    Corporate Other taxes

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    Corporate Other taxes

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    Corporate Other taxes

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    10 views4 pages

    Corporate Other Taxes

    Uploaded by

    Ismael Gouws
    Corporate Other taxes

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
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    - WE | Worswie Tax Summaras South Africa Corporate - Other taxestatrevend-120.emter202 we Value-added tax (VAT) VAT is an indirect tax that i largely directed at the domestic consumption of goods an services and at goods imported into South Aca, The taxis ‘designed to be paid manly By the uate consumer or purchaser in South Aiea. is levied at two rates, namely a stand rate an a zero rate ©. With effect from 1 Apri 2018, the standard rate of VAT i 1 ¥6 (ror to that date, the standard rate was 14%), Vary few business transactions carried out in South Afica are not subject to VAT. The taxis collected by businesses that are registered with the ‘SARS a8 "vendors on alltaxable supplies throughout the production and distrioution chain. Sales or supplies By non-vendors are not subject to VAT. VAT registration and administration [AL suppliers of goods and services having an annual tumover exceeding ZAR 1 millon or which are expected to exceed ZAR 1 milion inthe next 12 ‘mont in torms of a writen contractual agreement are aquired to registor as VAT vendors and to charge output tax. Other vendors may elect 10 register as VAT vendors, provided thelr annual tumover exceeds ZAR 50,000, Some spectc ules apply. Firstly, non~esident supplies of electronic ‘services are required to register once the value of taxabla supalis has exceeded ZAR 1 milion in any consecutive 12-morth period. Secondly, persors likely to make taxable supplies only afte a period of tme may register the activites are of a nature set out in regulations, I they do not register, they are prohibited from charging VAT on goods or services they supply and claiming an input tx rebate of VAT paid) an goods and ‘services tha they acquire, Lastly, where a person is carying on an enterprse and the total value of taxable supplies made orto be made by that person has not exceeded ZAR S0,000, but ean be reasonably expected to exceed ths amount within +2 months from the date of registration, the person may register, subject to the provisions of the relevant regulations. Undor the VAT systom, vendors normally pay VAT on expenses (input tax) and charge VAT on supplies made (output tax). This mechanism, therefore, ‘ensures that only the so-called ‘aded-value’is taxed. Due to VAT being a sel-assessment system, the output tax collected may be reduced by inout tax paid, Thereafter, the net amount is payable to, or refundable by, the SARS. The sell-assessment returns are due regularly witin prescribed pati (ax periods) Taxable supplies ‘Standarc-ated and zero-ratee supplies ae known as taxable supple, Other supplies are known, exempt and nor-suppli Goods and services [AVAT liblity arises where there is @ supply or importation of goods or services. Goods are corporeal movable things, fixed property, and real rights in such things and propery. The meaning of services” s very Broad and inclides te granting, assignment. cession, or eurender of any right or the making available of any faclity or advartage. Electronic services Non-resident supplies of electronic services are requted to register for VAT and account for VAT on supplies of electronic services to SA residents, Imports ‘Services imported by a vendor and utllsed or consumed by the vendor forthe making of taxable supplies are rot subject to VAT. In addin, the VAT Act has a schedule that lists goods that are exempt from VAT on importation, whether by a vendor or an unregistered person Zero-rated supplies ‘The VAT Act contains alist ofthe supplies of goods or services that aro taxed atthe zero rate, Most ofthe items refer to exports and intrnatonal ‘anspor, but other spectieg goods utlised for farming purposes, the sale ofan enterprise as a golng concer, cerain basic foodstufs fuel subject to the fuel levy, and deemed supplies by welfare orgarisations are also zero-rate. {A zaro-rated suply mad by a vendor's subject to VAT but ata rate of Under a zero-rated supply, a vendor does not charge VAT on the ‘consideration forthe supply and obtains a refund or crecit for the VAT paid on taxable supplies utilised inthe making ofthe zero-rated supple. Exempt supplies In adation to zero-rated supplies, the VAT Act contains alist of the supplies of goods or services that are exempt frm VAT. While ll fee-based financial services are subject to VAT, interest charged is exempt Other exempt supplis include resicentialrertals,non-nternational passenger transport by road o ral, and educational services. th the case of an exempt supply made by a vendor, the vandor does not charge VAT on the supply and isnot entited to a deduction or red forthe VAT paid on goods and services supplied for the making ofthe exemat supply. Accordingly, vendors trea the VAT paid by ther, and for which they {49 not obtain a deduction or erect, ae another cost ad recover itn the consideration they charge forthe making of the exempt supaly. Customs duties ‘Customs duties are charged on Importation of goods into South Afica at rates ranging between 3% and 45% In dalton, Import dues may also include art-cumping and countervaling duties of up to 180%. No customs duties ae charged on trade between South Afica and Botswana, Lesotho, Namibia, and Swaziland, as these five countries constitute the Southern Atican Customs Union, The Agreement establishing the Arican Continental Free Trade Area (AICFTA) came into effect on + January 2021 with the alm to boost ntra-African trade. Preferential trade under the Agreement wil only be possible, however, orce the tari schedules have been negotiated Excise duties [Exeise duty is levied on certain focally manufactured goods as well as thelr imported equivalents, A specific duty ata pre-determined amount is levied on tobacco and quor, and an ad valorem duty (calculated asa percentage of price) on certain lxuty goods and automobiles. Rell rom ‘excise duty is avaliable for exported products and fo cartan products produced in the course of specie farming, forestry, an (limited) manufacturing actives. Property taxes Local municipaltis ley rates on land. These rates are based on a percentage ofthe municipal vakiation of land and improvements and vary trom ‘municipal to muniipalty. Generaly, higher rats levied on properties zoned for business use, = Transfer duty Transfer duty vie on the sale of immovable property is payable by the person acquiring the property witin six months trom the date of acquisiton atthe following rates: Purchase price (ZAR) “Tranatr duty rte Not sxeseding* 300,000, om 1.812801 19 2.117.600, 12375 plo 6% on value above 1.512500 2,722,500 12,100,090 7.078 pis 11% on value above 2.722.500 Exceeding 12,000,001 1,126,000 pls 12% on value above 12,100,000 ‘Transfors of immovable property subject to VAT are exempt from transfer duty - Securities transfer tax (STT) 'STTIs loved at a rato of 0.25% ofthe taxable amount in respect ofthe transfer of a security. The taxable amount is usually the consideration for \which the security's purchased ortho markot val of tho socuty I the consideration declared fs loss than the markat valu orf no consideration \was paid, STTis payable bythe company that issued the secures in question. However, the company can recover the tax from the person ‘acquiring the shares. Shon different rles apply in he case ofIsted secures, Payroll taxes Employers are lable to witnhold pay-8e-you-eam (PAYE) on benalf oftheir employess. PAVE is payable to SARS on a monthly basi, calculated on the remuneration pald to an employee. The rates vary depending onthe employee's remuneration, Skills Development Levy (SDL) ‘SDL is compulsory levy to fund education and training tis payable by an employer and cannot be deducted from the remuneration payable to an ‘emoloyee, Small emolayers with an annual payroll of less than ZAR 500,000 are exempt from the levy, SDL Is levied at the rate of 1% of payroll. is payable monthly, together with income tax thatthe employer has withheld on its employees salaries. Unemployment Insurance Fund (UIF) contributions Employers are required to contribute on behalf of ther employees on a personalised bass to the UIF. The rate of contributions is 1% of gross remuneration payable to an employee, with a monthly cap of ZAR 177-12 per employee. Another 1%, subject to the same cap s payable by the ‘employee and withheld by the employer. Employers are fable fr making annual contibutions to the COIDA fund. COIDA contributions are a payroll cost that cannot be deducted from the ‘employee's salary, with a maximum salary cap per employee of ZAR 508,478 per annum. The rates vary depending on the employers industry. - Donations tax Disposals of assets below an adequate consideration are a deemed donations and subject to donations tax. Donations taxis payable by resident ‘companies at a rate of 20% ofthe value of property donated to the extent that this value does not exceed ZAR 30 millon, and at arate of 25% of the value of propery disposed ofthat exceeds ZAR 30 millon. An anrual exemstion of ZAR 10,000 is avaiable for companies. Public companies, comprised of mostly listed companies, are exempt from donations tax. An exemption is also available for donations made to Certain charlies and ther non-proft organisations. Vehicle emissions tax {An environmental levy is levied on new passenger motor veticles at arate of ZAR 132 per gram of CO2 produced per kilometre over the frst 1209 of ‘602 per klomotre, and at arate of ZAR 176 per gram of CO2 produced per klometro over the ist 179 of CO2 per klomtro (nthe case of double ‘cab passenger vehicles). Note that stated rates are applicable from 1 Apri 2022, Fuel levy ‘A tuo levy s included in the price of petroleum ful sold. The general fuel levy for 2028/24 is 384 cents per lire of petrol and 380 cents per litre of

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