FAQ: The source identifier, containing the security token will be supplied by SARS to the customer, but only in cases where the Channel Identifier = ‘CD’. Correct? However, what should be used if Channel = IFL?
The Source Identifier for the CD channel will be issued by SARS per user that enrols and activates for submission on CD. The process of enrolment and activation will be facilitated on eFiling.
FAQ: Has SARS considered using FTP technology for the submission of VAT supporting data?
Yes, however, the only channels made available for VAT supporting data submission will be the Direct Data Flow Channel using Connect:Direct.
FAQ: How is data authorisation done?
With every file that a vendor submits, either a VAT500 for summary level supporting data or a VAT501 for line item level supporting data is generated and sent to the vendor on eFiling (for data submitted on the Direct Data Flow channel). The vendor must open the authorisation letter (VAT500 or VAT501). The vendor must […]
FAQ: What channel is available for submitting VAT supporting data?
Direct data flow – utilising the connect direct software to enable vendors to submit supporting data from their source system directly to SARS, is available.
FAQ: More than 50% of my home is used for business purposes. Do I qualify for the primary residence exclusion?
No. Under the definition of a “primary residence” in paragraph 44 of the Eighth Schedule, a primary residence must be used mainly for domestic purposes. “Mainly” in this context means more than 50%.
FAQ: Is the primary residence exclusion of R1,5 million for the 2012 year of assessment subject to apportionment?
The primary residence exclusion is not subject to apportionment when a part of the residence is used for trade purposes or when it is not ordinarily resided in for a part of the period of ownership. The first step is to calculate the overall capital gain or loss on sale of the residence. Next you […]
FAQ: A couple has lived on a boat that is longer than 10m for a number of years. The boat is their primary, and indeed only residence. Will they be exempt from CGT if they sell the boat or will SARS seek to tax any gain on disposal?
A boat used as a place of residence by an individual is specifically included in the definition of a “residence”, as is a mobile home and a caravan. A boat will therefore qualify for a primary residence exclusion on the same basis as a more conventional residence.
FAQ: I bought my primary residence in May 1980 for R98 000. Pre-1 October 2001 improvements =R152 000. Market value on 1 October 2001 = R3 500 000. I sold the property for R4 250 000 on 30 September 2011. Will I be liable for CGT?
There are three possible methods for determining the gain on this property. Market value Proceeds R4 250 000 Less: Market value R3 500 000 Gain R 750 000 Time Apportionment Base Cost Proceeds R4 250 000 Less: Time-apportionment base cost R2 472 222 Gain R1 777 778 20% of Proceeds Proceeds R4 250 000 Less 20%x proceeds R 850 […]
FAQ: If a salaried employee owns a house that he lives in and owns a second property that was let out, is he liable for capital gains tax on the second property which he sold?
(a) If a salaried employee owns a house that he lives in and owns a second property that was let out, is he liable for capital gains tax on the second property which he sold? If a salaried employee owns a house that he lives in and owns a second property that was let out, […]
FAQ: I am married to three wives in terms of customary law. My wives stay in three different homes that I own. Which home is my primary residence for CGT purposes?
Following the coming into force of the Recognition of Customary Marriages Act, 120 of 1998, on 15 November 2000, each of your wives is recognised as a spouse. You will have to choose which of the three residences is to be regarded as your primary residence. Bear in mind that a person may not claim […]
