Author: Celia Becker. ANGOLA: Budget Law 2016 adopted by National Assembly The Angolan National Assembly adopted the final version of Budget Law 2016 on 11 December 2015, following its approval of the Program of Economic Diversification on 7 December 2015. The Program includes the introduction of the Special Contribution on Banking Transactions (“SCBT”) and the Special Contribution levied on transfers for the payment of technical assistance or management fees. The SCBT is to be levied at a rate of 0.1% on the value of each banking transaction (excluding the payment of salaries and other payments of a personal nature) performed by financial institutions, including banks, leasing companies, insurance and reinsurance companies, and investment companies.
Author: Nyasha Musviba
Interest(ing) withholding tax
Author: Michael Reifarth (Tax Executive at ENSafrica). The Taxation Laws Amendment Act of 2015 (“Amendment Act”) was promulgated on 8 January 2016 and contains a number of legislative changes to the Income Tax Act, 58 of 1962 (“the Act”). The Amendment Act contains some long-awaited amendments to the provisions that regulate the interest withholding tax (“IWT”). This article examines two of the more important changes that should be borne in mind by parties affected by the IWT.
Unilateral extension of prescription in certain specific tax matters
Author: Carmen Gers and Chris de Bruyn (ENSafrica). Section 99 of the Tax Administration Act, 28 of 2011 (“Tax Admin Act”), which regulates prescription in relation to tax assessments, provides that a three-year prescription period applies where the South African Revenue Service (“SARS”) has had a previous opportunity to assess a taxpayer (e.g. income tax) and a five-year prescription period applies in the case of self-assessment (e.g. value added tax and employees’ tax). In an ENSafrica article dated 19 August 2015, we addressed the proposed unilateral extension of prescription by SARS as was provided for in the draft Tax Administration Laws Amendment Bill (“Draft Bill”), a copy of which can be found here.
Rules for levying interest on the late payment of VAT
Author: Gerhard Badenhorst (Tax Executive at ENSafrica). The rules regarding the levying of interest on the late payment of value added tax (“VAT”) are often confusing, and the introduction of the Tax Administration Act, 28 of 2011 (the “TAA”) has contributed to the uncertainty as to the rules that apply. Levying of interest The TAA introduced a new interest regime for the levying of interest on unpaid taxes to ensure that the levying of interest is aligned across all taxes.
Estate duty implications for non-resident individual investors in South African assets
Author: Heinrich Louw. On 21 January 2016, the South African Revenue Service (SARS) issued Binding Private Ruling 217 (Ruling). The Ruling deals with the estate duty implications for non-resident individual investors (Investors), specifically where such an Investor, who is a resident in Country X, purchases a linked investment plan from a company incorporated and resident in Country X, which carries on the business of life insurance (the Company). The key issue was how certain sections of the Estate Duty Act, No 45 of 1955 (EDA), would apply.
Interpretation of the term ‘substantially the whole’
Authors: Nicole Paulsen and Gigi Nyanin. The South African Revenue Service (SARS) released Binding General Ruling No. 20 (issue 2) (BGR 20) on 20 January 2016, which provides clarity on the interpretation of the term ‘substantially the whole’ as referred to in specific sections of the Income Tax Act, No 58 of 1962 (Act).
SARS Income Tax Rates for Companies, trusts and Small Business Corporations (SBC)
SARS Media Release: TAX RETURNS GIVE INSIGHT INTO ECONOMIC PERFORMANCE
Pretoria, 21 January 2016 – The National Treasury and South African Revenue Service will host a special workshop on the potential of tax administration records to provide insight into firm growth and performance, and hence economic growth. This will take place at the Linton House Auditorium at Brooklyn Bridge that houses SARS offices in Brooklyn, Pretoria from 9am. There is now a set of data for Corporate Income Tax (CIT), Personal Income Tax (PIT), Value-added Tax (VAT) and international trade spanning approximately six years that is being utilised for economic and policy research. The anonymous records hold information from more than 600 000 companies registered for various taxes. Some preliminary findings will be announced.
Exemption from Security Transfer Tax for collateral
Authors: Magda Snyckers and Kelle Gagné (ENSafrica). For years, the South African securities lending industry has been lobbying for an exemption from securities transfer tax (“STT”) for the outright transfer of listed equity securities as collateral. On 8 January 2016, the Taxation Laws Amendment Act 25 of 2015 was promulgated, which includes the long-awaited introduction to the Securities Transfer Tax Act 25 of 2007 (the “STT Act”) of such an exemption. This is very good news for the South African securities lending market and others, but parties will need to clear a few hurdles before availing themselves of the exemption.
South African Tax Tables 2012 to 2016 – rates of tax for individuals
2016 tax year (1 March 2015 – 29 February 2016) ?Taxable income (R) ?Rates of tax (R) ?0 – 181 900 ?18% of each R1 ?181 901 – 284 100 ?32 742 + 26% of the amount above 181 900 ?284 101 – 393 200 ?59 314 + 31% of the amount above 284 100 ?393 201 – 550 100 ?93 135 + 36% of the amount above 393 200 ?550 101 – 701 300 ?149 619 + 39% of the amount above 550 100 ?701 301 and above ?208 587 + 41% of the amount above 701 300