Cap40 event: Nolands presentation introduction to SA income tax


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Conference & Workshop on Tax & Currency in South Africa with Cap40 at the Alliance Française of Cape Town
Interview of Graeme Saggers Chartered Accountant at Noland and Graham Barratt CFX Sales Manager at Currencies Direct.

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  • Residents subject to certain exemptions on foreign income
  • Tax season opens on 01 July
  • Organisation for Economic Co-operation and Development
  • Individual interest exemptionDTA dividends greater than 10%
  • Cap40 event: Nolands presentation introduction to SA income tax

    1. 1. Event organizedbyJoin the community
    2. 2. Presented by:Graeme Saggers CA(SA)Nolands Advisory ServicesBusiness Wednesday Tax & Currency
    3. 3. • Who are we?• Types of tax in South Africa• Residence based system• Resident individuals• Resident companies• Non-resident individuals and companies• Main differences between South African and FrenchIncome TaxBusiness Wednesday Tax & Currency
    4. 4. • National firm with Head Office in Cape Town and 9 officesthroughout South Africa• Offer services in• Audit• Forensics• Advisory• Tax• Local and foreign client base• Affiliation to Geneva Group InternationalBusiness Wednesday Tax & Currency
    5. 5. • South African Revenue Services (SARS) – centraladministration for all taxes• Direct taxes• Income Tax• Tax on Income• Tax on Capital Gains (CGT)• Dividend Tax• Withholding taxes• Estate Duty• Indirect taxes• Value-added Tax (VAT)• Transfer Duty• Customs and Excise DutyBusiness Wednesday Tax & Currency
    6. 6. • Residence vs Source based system• Gross Income definition• Residents taxable on worldwide earnings• Non-residents taxable on earnings from a source within SouthAfrica• Tax resident vs CitizenBusiness Wednesday Tax & Currency
    7. 7. • Ordinarily resident• Physical presence test• Present more than 91 days in each of current and previous 5years• More than 915 days in total during the previous 5 years• Subject to Double Taxation Agreement• Present more than 183 days• Annual Tax Return for year ending 28 February• Provisional Tax• Taxed on sliding scales with maximum at 40%Business Wednesday Tax & Currency
    8. 8. • Incorporated, established or formed in South Africa• OR• Place of effective management• Compliance with OECD Model Tax Treaty• Protected by Double Tax Treaty• Tax returns based on financial year end• Taxable income taxed at 28%• 6 month, 12 month and final returnBusiness Wednesday Tax & Currency
    9. 9. • Taxed on income from a SOURCE within South Africa• SOURCE refers to where originating cause is conducted• Certain withholding taxes apply• Royalties 15%• Dividends 15% (5% per DTA)• Interest 15%• Sale of property 5 - 10%• Pay as you Earn Sliding scale• Annual tax return• Double tax treatyBusiness Wednesday Tax & Currency
    10. 10. • Different year end Feb/Dec• Central administration covering direct, indirect and socialsecurity taxes• Taxed on individuals and not on household income• No wealth tax• Capital Gains Tax• Individuals 33.33%• Companies 66.67%Business Wednesday Tax & Currency
    11. 11. Graeme Saggers CA(SA)Nolands Advisory ServicesT 021 658 6600M 082 410 0917E House| River Park | River Lane | Mowbray |Cape Town | 7700 | South AfricaBusiness Wednesday Tax & Currency