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Event organized by Join the community on cap40.co.za
| Date post: | 21-Jan-2015 |
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Technology |
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Event organized by
Join the community on cap40.co.za
Introduction to South African Income TaxPresented by:Graeme Saggers CA(SA)Nolands Advisory Services
Business Wednesday Tax & Currency
Introduction
• Who are we?• Types of tax in South Africa• Residence based system• Resident individuals• Resident companies• Non-resident individuals and companies• Main differences between South African and
French Income Tax
Business Wednesday Tax & Currency
Who are we?• National firm with Head Office in Cape Town and 9
offices throughout South Africa• Offer services in• Audit• Forensics• Advisory• Tax
• Local and foreign client base• Affiliation to Geneva Group International
Business Wednesday Tax & Currency
Type of Tax in South Africa• South African Revenue Services (SARS) – central
administration for all taxes• Direct taxes• Income Tax• Tax on Income• Tax on Capital Gains (CGT)
• Dividend Tax• Withholding taxes• Estate Duty
• Indirect taxes• Value-added Tax (VAT)• Transfer Duty• Customs and Excise Duty
Business Wednesday Tax & Currency
Residence based system
• Residence vs Source based system• Gross Income definition• Residents taxable on worldwide earnings• Non-residents taxable on earnings from a source within
South Africa
• Tax resident vs Citizen
Business Wednesday Tax & Currency
Resident Individuals
• Ordinarily resident• Physical presence test• Present more than 91 days in each of current and
previous 5 years• More than 915 days in total during the previous 5 years
• Subject to Double Taxation Agreement• Present more than 183 days
• Annual Tax Return for year ending 28 February• Provisional Tax• Taxed on sliding scales with maximum at 40%
Business Wednesday Tax & Currency
Resident Companies
• Incorporated, established or formed in South Africa
• OR• Place of effective management• Compliance with OECD Model Tax Treaty• Protected by Double Tax Treaty• Tax returns based on financial year end• Taxable income taxed at 28%• 6 month, 12 month and final return
Business Wednesday Tax & Currency
Non-resident Individuals and Companies• Taxed on income from a SOURCE within South
Africa• SOURCE refers to where originating cause is
conducted• Certain withholding taxes apply• Royalties 15%• Dividends 15% (5% per DTA)• Interest 15%• Sale of property 5 - 10%• Pay as you Earn Sliding scale
• Annual tax return• Double tax treaty
Business Wednesday Tax & Currency
Main differences between SouthAfrican and French Income Tax
• Different year end Feb/Dec• Central administration covering direct, indirect
and social security taxes• Taxed on individuals and not on household income• No wealth tax• Capital Gains Tax• Individuals 33.33%• Companies 66.67%
Business Wednesday Tax & Currency
Graeme Saggers CA(SA)Nolands Advisory ServicesT 021 658 6600M 082 410 0917E [email protected]
Noland House| River Park | River Lane | Mowbray | Cape Town | 7700 | South Africa
Contact Details
Business Wednesday Tax & Currency
