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Technical Inbox - Pick of the Week

SAIT is here to help members with all their tax-related queries! Click here to view a select few queries we received via the Tax Helpline.

 

 

SAIT Technical
FEATURED: Budget Review Trilogy - February 2018

What lies ahead for you and your business?  SAIT and FPI invite you to attend the 2018 Budget Review Trilogy to find out what South Africa’s economic future holds. Three regional venues are conveniently available to interested attendees. Our esteemed experts will interpret the impact of National Treasury’s Budget Review through a live screening of the National Budget Speech followed by a panel discussion at our Cape Town event. Durban and Johannesburg will follow on the following days.

SAIT CPD

Tax Administration & Interpretation
(SARS and Office of the Tax Ombud)

General Note 35 Unclaimed Benefits 8 April 2004
IN99 Unclaimed benefits
Guide for Employers iro Employees Tax for 2019

TAX CASES

Latest Tax Court Judgment
SARS

Legislative & Policy
(National Treasury & Davis Tax Committee)

Budget Cycle Guidelines

February means its budget month and when the Minister of Finance presents to government and the country the state of the country’s economy and expenditure projections for the pending financial year. Click here to read more.

Carbon Tax Draft Bill: National Treasury briefing

The briefing by National Treasury on the draft Carbon Tax Bill consisted of two presentations. The first presentation clarified South Africa’s Greenhouse Gas (GHG) emission reduction system, while the second detailed South Africa’s Draft Carbon Tax Bill, 2017.

Parliamentary Monitoring Group
2018 Budget: Debt benefit triggered by changes in terms or conditions of a debt - request for postponement of effective date

SAIT has made a submission to Treasury to request that the effective date of the debt benefit triggered by changes in T's and C's of a debt be postponed to 1 January 2019 in the 2018 Budget.  Please click here to read more.

SAIT Tax Policy

Call For Comment

​Customs & Excise Act, 1964

Draft rules under sections 39B and 41 incomplete and provisional entriescover note

Next due date for comments :21 February 2018

SARS
National Legislation​

2018 Draft Rates and Monetary Amounts and Amendment of Revenue Laws BillDraft Amendments to Regulations prescribing electronic servicesConsolidated Regulations after Draft Amendments to Regulations prescribing electronic servicesDraft Explanatory Memorandum-Regulations prescribing electronic services

Next due date for comments :​22 March 2018New!

SARS
Tax Administration Act, 2011​

Draft Interpretation Note 15 (Issue 5) – Exercise of discretion in case of late objection or appeal

Next due date for comments :​31 March 2018

SARS

International and Regional News
(OECD and ATAF)

Serbia joins the Inclusive Framework on BEPS

The Inclusive Framework welcomes Serbia, bringing to 112 the total number of countries and jurisdictions participating on an equal footing in the Project.

OECD releases consultation document on misuse of residence by investment schemes to circumvent the Common Reporting Standard

Public input is sought both to obtain further evidence on the misuse of CBI/RBI schemes and on effective ways for preventing abuse.

Statutory tax rates on dividends, interest and capital gains: The debt equity bias at the personal level

This paper presents statutory tax rates on several forms of capital income, including dividends, interest on bonds and bank accounts, and capital gains on shares and real property, including integration between the corporate and personal levels.

CPD Events

PROFESSIONAL INSIGHT

Change in VAT rate

You will have noted that the Minister of Finance announced an increase in the VAT rate today, which will apply with effect from 1 April 2018.
The VAT Act contains a number of rules which cater for an increase in the VAT rate. These rules cover, for example, what happens when contracts have been entered into before the date on which the VAT rate is increased but where no invoice has yet been issued or payment received (ie the time of supply for VAT purposes has not yet happened).
...

KPMG SA
Budget 2018 – The ‘Band Aid’ Budget

By Nazrien Kader, Managing Partner Deloitte Africa Tax & Legal

Deloitte
Africa tax In brief

BOTSWANA: COMESA-SADC-EAC Tripartite Free Trade Agreement signedBotswana has signed the Tripartite Free Trade Agreement, encompassing the 26 member states of three regional economic communities, the Common Market for Eastern and Southern Africa (“COMESA”), the Southern African Development Community (“SADC”) and East African Community (“EAC”), on 30 January 2018, becoming the 22nd country to do so. 

Celia Becker
Are pension funds, PBOs and universities exempt from all taxes?

The South African Income Tax Act, 1962 (the “Income Tax Act”) contains exemptions from income tax that apply to institutions such as pension funds, certain universities and non-profit public benefit organisations, with an altruistic or philanthropic intent. 

Magda Snyckers and Sarah Gama
REITs and corporate reorganisations: 2018 updates

The South African tax provisions applicable to real estate investment trusts (“REITs”) were introduced by way of the insertion of section 25BB of the Income Tax Act, 1962 (the “Act”), as well as consequential insertions in various sections of the Act during 2013. 

Michael Reifarth
Transforming your tax function with process automation

South African citizens are looking to Government to provide stability and deliver on its multitude of promises including free tertiary education, economic transformation, National Health Insurance, job creation and improved service delivery to name but a few.

KPMG SA
Transfer pricing implementation and enforcement – a source for taxes?

Instead of increasing existing taxes or levying new taxes, a way to tackle the looming budget deficit may be to properly implement transfer pricing rules and to ensure appropriate enforcement by the South African Revenue Service (SARS) of such rules.

KPMG SA
Jumping fences: Section 20A of the Income Tax Act and ring-fenced losses

In South Africa’s current challenging economic climate, the risk of suffering losses in business is higher than normal. From a tax perspective, persons are generally allowed to set off losses incurred in respect of one trade against the income derived from another trade, to reduce their tax liability. 

Louis Botha and Louise Kotze (CDH)
Tax devils laying in the technical detail

With a burgeoning interest bill, free tertiary education to fund and 2018 tax collections expected to fall short of budget by over R50 billion, taxpayers in South Africa are bracing themselves for some bad news on budget day.

KPMG SA

Tax News In The Press

Budget 2018 - Not Enough Money to Go Around, and Especially Not for Nuclear

[Daily Maverick] Amid the 2018/19 Budget talk of tough decisions, tax increases and government spending cuts to put the rands and cents to government priorities for the year, there are some interesting gaps. By MARIANNE MERTEN.

Budget 2018 - VAT Is Increased - a First for New SA

[Daily Maverick] For the first time in democratic South Africa value-added tax (VAT) is raised - by one percentage point to 15% as part of the "tough but hopeful" Budget Finance Minister Malusi Gigaba presented on Wednesday. The VAT hike is central in a set of tax increases, including higher estate and luxury goods duties and an extra 52 cents per litre in fuel levies, to generate an additional R36-billion for the national purse. The tax hikes come alongside R85-billion government...

Newsflash - Malusi Gigaba Under Shadow On Budget Day As Damning Judgment Emerges

[Daily Maverick] As Finance Minister Malusi Gigaba prepared to give his maiden Budget speech in the National Assembly on Wednesday afternoon, new information about Gigaba's tenure as Home Affairs Minister emerged. The DA announced that it has laid a complaint with the Public Protector against Gigaba as a result of a damning court judgment handed down in December - which finds that Gigaba violated the Constitution by lying under oath. By REBECCA DAVIS.

Draft Amendments to Regulations prescribing electronic services section 1(1) of the VAT Act
#budget2018 - Government Must Shoulder the Burden, Not Poor South Africans

[DA] The DA has gone into lockdown for the next four hours where we will be combing through the Budget 2018 to identify any proposed budget items that may negatively impact poor South Africans, especially any potential tax increases like VAT.

Budget 2018 - Gigaba Can Avoid Tax Increases and Make R112 Billion Available

[DA] The following was presented today by the DA Leader, Mmusi Maimane MP, and DA Shadow Deputy Minister of Finance, Alf Lees MP, ahead of the Main Budget 2018, tomorrow. Please find the Main Budget Preview here.