FAQ: Why has there been a change from medical tax deductions to medical tax credits?
The system of tax credits is fairer. All taxpayers, regardless of their level of income, derive an equal tax benefit because tax credits are fixed and are deductible against the normal tax payable, as opposed to simply reducing the taxable income. With the previous system of medical aid contributions, the higher the taxpayer’s income, the […]
FAQ: How is VAT calculated on imported goods?
VAT on imported goods is paid on the Added Tax Value (ATV) and this is determined as follows: Customs Value, plus any duty levied on the goods, plus 10 per cent of the Customs Value. VAT on imported goods from BLNS – Where imported goods have their origin in Botswana, Swaziland, Lesotho or Namibia (BLNS) […]
FAQ: What is “deemed medical contributions”?
Medical contributions paid by an employer for the benefit of an employee to a registered medical scheme will result in a taxable benefit in the hands of the employee. Although regarded as a fringe benefit (and thus gross income), the amount will also be regarded as a contribution made by the employee, and will be […]
FAQ: What happens when I have paid more contributions into my retirement annuity fund (RA) in a year than I can claim against tax?
The excess amount will be carried over to the next tax year.
FAQ: Who falls under the disabled persons category for tax purposes?
The term “disability” refers to a moderate to severe limitation of a person’s ability to function or perform daily activities as a result of a physical, sensory, communication, intellectual or mental impairment. The limitation must have lasted or must have a prognosis of lasting more than a year and must have been diagnosed by a […]
FAQ: Can a registration for income tax be backdated?
Yes
FAQ: What are penalties for not submitting my income tax return?
The penalties for not submitting a tax return are set out in Chapter 15 of the Tax Administration Act. They differ according to behaviour of the taxpayer.
FAQ: What is the foreign tax credit limit for individuals?
The rebate is limited to the foreign tax payable and may not exceed the result of the following formula: Total Normal Tax in South Africa x taxable foreign income / total taxable income. If the total foreign tax paid exceeds the limitation amount, the excess amount may be carried to the following tax year. But […]
FAQ: What is remuneration for tax purposes?
Remuneration is any amount of income which is paid/payable to any person whether in cash or otherwise (e.g. fringe benefit) and whether or not for services rendered. Remuneration will include: salary, fee, bonus, wage, gratuity, pension, leave encashment, emolument, voluntary award, commission, annuity, stipend, overtime, superannuation allowance, retirement allowance, lump sum benefit payment, director’s remuneration, […]
FAQ: Why must I register for Income Tax?
If your earnings for a given tax year are above the tax threshold, you are obliged by law to register for income tax. You must register for income tax, if you are an individual: See the tax rates and tax thresholds.
