26 October 2012
Posted by: SAIT Technical
By Michael Stein (Friday Page)
Executive summary (SAIT Technical)
Rates and Monetary Amounts and Amendment of Revenue Laws Act 13 of 2012 was promulgated on 9 October 2012 and largely gives effect to the rates of tax presaged by the Minister of Finance in his 2012 budget speech.
The snappily titled Rates and Monetary Amounts and Amendment of Revenue Laws Act 13 of 2012, or, to give it a short title, the Rates Act 2012, was promulgated on 9October 2012 (see GN828 Government Gazette 35775 of 9October 2012).
It is the first amending Act for 2012, two others are awaiting passage through Parliament, namely, the massive Taxation Laws Amendment Act 2012 and the Tax Administration Amendment Act 2012.
The Rates Act 2012 largely gives effect to the rates of tax presaged by the Minister of Finance in his 2012 budget speech. It also gives effect to some other amendments affecting the primary, secondary and tertiary rebates available to natural persons, the relief available for medical expenses, the exemption for certain foreign dividends and dividends from headquarter companies, the limitations on the deduction for prepaid expenditure, the dividends tax rate, the taxation of the fringe benefit when residential accommodation is provided to employees, the capital gains tax (cgt) annual exclusions allowed to natural persons, the cgt percentage inclusion percentages, the cgt relief available on the disposal of a primary residence, the relief available on the disposal of small business assets, oil and gas activities and some rates of customs duty.
What is strange, but traditional, is that the amendments are generally retroactive to 1 March 2012, so that it reflects the law that we have all had to obey for the seven or so months prior to its promulgation.