grants and financial aid
What is it?Income tax is the normal tax which is paid on your taxable income. Examples of amounts an individual may receive, and from which the taxable income is determined, include –Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefitsProfits or losses from a…
South Africa has a residence-based income tax system which has the effect that –• a resident’s worldwide taxable income is subject to income tax in South Africa; and• a non-resident’s taxable income from sources within South Africa is subject to tax inSouth Africa.The South African government has entered into tax treaties with various countries, to…
Dividends and foreign dividendsDividends received by or accrued to a person, whether the person is a resident or a non resident, from South African resident companies are generally exempt from normal tax undersection 10(1)(k)(i). A dividend which is subject to normal tax because of its inclusion in incomeis exempt from dividends tax under section 64F(1)(l)….
Pensions exempt from normal tax [section 10(1)(g), (gA), (gB) and (gC)]The following amounts are exempt from normal tax in South Africa:• War veteran’s pensions [section 10(1)(g)].• Compensation relating to diseases contracted by persons employed in miningoperations [section 10(1)(g)].• Disability pensions paid under section 2 of the Social Assistance Act 59 of 1992[section 10(1)(gA)].• Compensation paid…
South African Revenue ServiceThe South African Revenue Service (SARS) is South Africa’s tax collecting authority.Established under the SARS Act as an autonomous agency, SARS is responsible foradministering the South African tax system and customs service.SARS’s responsibilities are to –• collect and administer all national taxes, duties and levies;• collect revenue that may be imposed under…
Insurance companiesShort-term insurance (section 28)The ordinary rules for the determination of taxable income also apply to a short-term insurer.Short-term insurers are allowed to deduct expenditure incurred in respect of their business ofinsurance, premiums on reinsurance and the actual amount of a liability incurred for anyclaims, less any claims recovered. In addition, allowances for unexpired risks,…
Business incomeBusiness income received by or accrued to a non-resident from carrying on a trade or businesswithin South Africa is taxable in South Africa. The taxability of the income may be affected bya tax treaty.Income derived from any business or trading activity carried on by a resident outsideSouth Africa will be subject to normal tax…
How do I claim S18A deductions on the ITR12 return?To claim donations made by the donor in a personal capacity, the following questions must be answered on the return wizard:Do you want to claim donations made to an approved organization(s) in terms of s18A?How many organizations did you donate to?Upon answering these questions, the donation…