The Minister of Finance announced in his recent Budget speech that the Capital Gains Tax (CGT) inclusion rate for companies will increase from the current 50% to 66.6% for all disposals of assets after 1 March 2012. This will increase the effective CGT rate for companies from the current 14% to 18.6%.
In terms of AC502 Substantively enacted tax rates and tax laws changes in tax rates should be regarded as substantively enacted from the time that they are announced in terms of the Minister of Finance’s Budget Statement if the change in rate is not linked to other changes in the tax laws that require approval from Parliament.
This is a stand alone amendment to the CGT inclusion rate that will come into effect for all assets disposed off after 1 March 2012.
The impact of this is that companies with reporting dates from 29 February 2012 and later (either interim or final) need to account for this change in tax rate, on all deferred tax liabilities and assets relating to CGT, in the current reporting period.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.
MINIMUM REQUIREMENTS TO REGISTER
The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.