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UIF rates Increase 1 L. Spangenberg According to SAGE the following applies:South African companies must not adjust their payroll UIF contribution calculations this month following the news that the Minister of Labour has increased UIF benefits with effect from 1 April 2017. They instead must wait for the Minister of Finance to gazette the new contribution limits.The Minister of Labour announced on 17 March that the limit has been increased to R212 539 a year, R17 712 per month, and R4 087 a week. However, this change does not affect the calculation of the contribution value. Under the Unemployment Insurance Contributions Act, the contribution value will only be adjusted when the Minister of Finance publishes the new limits“For now, the contribution and benefit levels are out of lockstep, and companies should not base their payroll UIF contribution calculation on the new benefit limits,” says Rob Cooper, tax expert and Director of Legislation at Sage– one of South Africa’s leading providers of HR and payroll solutions.“Developers of computerised payroll systems should not, at this stage, have changed the contribution level. Unfortunately, the legislation around the UIF is poorly understood in the marketplace, which has led to some confusion.”Cooper says that he has drawn this issue to the attention of the South African Revenue Service (SARS) because it needs to be addressed urgently. Unless a notice in terms of the Contributions Act is published with the same limit value and effective date, the contribution and benefit limits will remain desynchronised.
by A. Colling
05 April 2017
Dividend tax 4 L. Vasapolli Dear,Hope this help, this is the communication that was received from SAICA after the budget speech. I do not know of the formal was send afterwards by SAICADirect mail from SAICA:"Dividends Withholding Tax (DWT) Rate IncreaseThere is some confusion regarding the effective date of the increase in the DWT rate from 15% to 20%, in respect of local dividends. We have confirmed that the effective date for this amendment is 22 February 2017. What this means for listed companies is that any dividends declared pre-22 February 2017, but paid after that date will be subject to the higher DWT rate of 20%. For unlisted companies, where dividends were declared (and were due and payable) pre-22 February 2017, the DWT rate applicable is 15%, even if it is paid after 22 February. For dividends declared (and due and payable), by unlisted companies, on/after 22 February 2017, the rate of 20% will apply. This is due to the "paid" term being defined in section 64E(2). For in specie dividends, the earlier of paid or due and payable will apply to both listed and unlisted companies as is the case with cash dividends for unlisted companies explained above.We have enquired from SARS as to what transitional arrangements will be made with respect to the DTR01 form as a result of the increased rate. We have been advised that the form will be revised for the amended rate mid-March 2017, to facilitate submission and payment by the end of March. The form currently requires disclosure of all dividends paid in a particular month and based on our understanding, one DWT rate may apply. However, in the scenario where an unlisted company has "paid" a dividend pre-22 February, a DTR01 must be submitted before end of March, but the 15% rate will apply. Similarly, where a company pays a dividend post 22 February 2017, it also will have to submit the DTR01 and make payment by 31 March 2017. However, in this case, the new 20% rate will apply. SARS will have to make provision to accommodate the two different DWT rates applicable in the circumstances. The same problem also results for companies doing late submissions or who are assessed on audit etc to have had a dividends tax liability pre-22 February 2017. SAICA is engaging SARS on the matter and will provide further guidance in due course."
by S. du Toit
28 February 2017
Refunds not being released due to a 'new' special stopper 19 T. Lopes This is no longer a joke. Still waiting for clients refund.It seems that the whole thing is to do the tax practitioner out of work. "Tax Practitioners must fall"
by E. Gibbon
23 November 2016
Objections old tax returns 1 R. Esterhuyse Hi RobI presume he must have submitted the returns manually? I have a few cases from 2002 - 2007 that I am dealing with and was able to submit the objections on efiling. The original returns were filed on efiling. Have you tried to request the IT34 on efiling and object from there?In my cases, I submitted the objections on eFiling and received a letter back to say they would be dealt with through another channel. I contacted Sars to find out whether I need to send this to the other channel (whatever that may be) or if they have. They advised that they send it through for manual objection and there is nothing further we need to do.This was only 5 weeks ago so I am not able to tell you what will come of this and whether it will be dealt with. Perhaps try requesting the IT34. If that doesn't work, maybe try to request the ITR12 as though it were a new return and see if you are able to do anything from there.Sorry - not really a solution for you but I thought it may help if I share what has happened with ours so far.Good luck!
by A. Venter
22 November 2016
Template letter valuation of company 0 R. Esterhuyse Morning All   I am seeking a template letter for the valuation of a company.   Thank you Rob
by R. Esterhuyse
22 November 2016
Turnover tax vs Income Tax 1 M. Lustgarten In terms of the Income Tax Act, the individual concerned will have to submit both a return of income (an ITR12) in respect of the remuneration and other income derived and a turnover tax form (in respect of his taxable turnover). We accept that the individual didn’t elect to be deregistered as a micro business – see paragraph 9 of the Sixth Schedule to the Income Tax Act. It is not correct to say that the turnover tax is in lieu of the other taxes. It merely provides an exemption (see section 10(1)(zJ)) in terms of which, any amount received by or accrued to or in favour of a registered micro business, from the carrying on of a business in the RSA, other than an amount received by or accrued to a natural person registered as a micro business that constitutes— (i) investment income as defined in paragraph 1 of the Sixth Schedule; or (ii) remuneration as defined in the Fourth Schedule; will be exempt from normal tax. Tax Helpline SAIT Technical
by C. Carstens
14 October 2016
42 working days after verification started and still no refund 5 D. du Plessis Hi there Talana (Lopes), Mike (White), and others. There's a SAIT Communication emailed to us today. But yes, I also tried to lodge a CMO complaint (after tax client went twice to SARS for lifting the same stopper)...and once submitting online CMO-compliant, is just comes back as "invalid" (without giving any reason online). Looks like were going to overwhelm the Ombud's inbox very soon! ;-) Tax regards, Michael Storm
by M. Storm
20 September 2016
Grant received for further study 3 J. Bosman I have read through this section quite a few times and looked through google search but cannot seem to find a definite answer on the following: If a company employees Maggie (Directors daughter-in-law). She earns R 150k per annum. She has three children who are in Grades 1, 4 and 7. Schooling is R 15k per child per annum. The company gives a bursary/scholorship with no repayments, of R 10k for each child per annum, Can the company 1. Deduct the R 30k for the year under scholarships and bursaries, and therefore reduce their tax liability? Can Maggie in effect, have received R 180k, but only have been taxed on R 150k. Would you even need to specify this on her IRP5, or must the company documentation just be in place eg School Invoice?  
by D. Pinn
24 August 2016
Sars absorbing credits on customers accounts 3 L. Vasapolli My view is that they may not raise assessments as they please.That is why you need to familiarize yourself with SARS Dispute Resolution Guide referred to above.You might refer to Paragraph 5.1 page 31 for example,which provides guidance re reasons for adverse assessments.Anyway hope all goes well for you.
by M. White
26 July 2016
Retirement Annuity Arrear Payments 1 C. Sitotombe RA arrears :1800pa is correct.Deduction requirements: When the contributions are made under conditions prescribed in the rules of the fund in terms of which a member who had discontinued his contributions prematurely is entitled to be re-instated as a full member  of the fund and the current contributions to the fund have been paid in full.(up to 2016 year of assessment).S11(n)(i)(bb). Also refer paragraph 8.2.3 entitled Arrear RAF Contributions of SARS Comprehensive Guide to the ITR 12  for Individuals version 10. Suggest you check with Retirement expert.too.
by M. White
15 April 2016
Efiling - Taxpayer Drop Down Selection 0 Y. Mohamed I have recently logged onto efiling and found out that the taxpayer drop down block is no longer available. You have to click on the name and search for a taxpayer. This is such an inconvenience and you now can lose track of your list of clients  Anyone else notice this or is my profile unique? Thanks
by Y. Mohamed
09 February 2016
Grant received for further study 0 J. Bosman Hi All   A client of mine (a medical doctor) has received a grant for an amount of R800 000 from an institution to do his PhD at Wits in a specific field. I think that this falls under exempt income and is the same as a scholarship or bursary. It specifically states that it is a "grant". He is currently in process of resigning his current position and will start full time study within the next two months.   Am I correct in my thinking?
by J. Bosman
27 January 2016
Provisional Tax 2016/01 underestimate 2 C. Sitotombe Thank you for your answer, appreciate it.
by C. Sitotombe
13 October 2015
SBC qualificationI 3 L. Nel Louwrens ,I see what you are saying. For this reason one needs to read what section 12E (4) (d) defines as personal services.The relevant parts of the definition one are set out below.“Personal services” in relation to a company..., means any service in the field of,,if –(i)...; and(ii) that company...does not employ three or more full- time employees(other than any employee who is the holder of a share in the company ...,or is a connected person in relation to a holder of a share in the company...) ,who are on a full-time basis engaged in the business of that company, ... of rendering that service.”Applying the definition to the incorporated practice, in my view means that as a business the company will among other things engage full -time employees such as office staff(includes receptionist) ,to enable it render its services. What do you think?
by M. White
08 August 2015
Donations 3 S. Kieck Thank you Mr. White. Much appreciated :)
by S. Kieck
10 July 2015
VAT AUDITS 1 Y. Mohamed Section 45 of the Vat Act provides that SARS has 21 business days not 21 days to make a vat refund, subject for example , to the taxpayer providing relevant information if refund audited, all his Vat returns are up to date (including income tax returns ,Employees Tax returns etc).So provided the taxpayer has met SARS’ requirements (as indicated above) in terms of Vat Act and Tax Administration Acts, the taxpayer is entitled to be paid interest after the 21 business days have elapsed. The important issue is that adequate and complete records are kept to support returns submitted and that a detailed record of a particular taxpayer’s dealings with SARS regarding any audits undertaken is kept and retained. The taxpayer is entitled to have his refund finalised timeously,failing which matter can be escalated to structures within SARS branches, SSMO and Tax Ombud.SAIT has SARS escalation lists on its website and SARS does have information on its website relating to Vat refunds and complaint procedures. Hope the above helps.
by M. White
18 June 2015
DIESEL / BIODIESEL REFUND 1 B. Jansen van Vuuren Try contacting Legal & Policy SARS at : You can try and contact Ms.Lita Spreeth(not sure if she still is at SARS HO) on 012 4224908. Good Luck.
by M. White
26 May 2015
VAT input claim FORD transit custom2.2tdci 1 D. Maartens Short answer : yes .Broader answer assumes it is not a motor car as defined in the Vat Act(it is not a vehicle constructed wholly or mainly for carrying passengers). Secondly provided the goods (the vehicle -Ford Transit) are used by the vendor wholly in course of making taxable supplies the vat incurred qualifies as input tax & may be claimed as a deduction under section 16(3) (a) of the Act. If not used wholly for taxable supply purposes then apportionment would of vat would have to be applied.Default method for apportionment is turnover based method unless vendor has obtained approval from Commissioner to use alternative method.Hope this helps.
by M. White
15 May 2015
Grants from Setas 3 M. Phalane Sorry if I am being a tad dense, but any income received by any organisation that does training (the corporation trains staff per contracts with various SETA), is exempt from VAT? Or is this the training done with the money received from SDL refunds?
by D. Gray
10 March 2015
Declining a tax type request due to outstanding fees 2 T. Coetzee Thank you for your reply, but would you please be so kind and post a link to the web page, I cant find it. Thank you in advance
by T. Coetzee
02 March 2015


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