by Ulrika Lomas, Tax-News.com, Brussels The Organization for Economic Cooperation and Development (OECD) has recommended that South Africa speed the implementation of a carbon tax to leverage fiscal space to enhance the tax regime. It has recommended that an environmental levy could provide a significant new revenue stream that would allow authorities to cut taxes on corporate profits and improve job creation and employment incentives to foster stronger economic growth.
Tax News
VAT submission due date via e-filing
SARS is not requiring VAT vendors who use eFiling to submit VAT returns on the 25th of the month. The benefit of no interest, penalties, or prosecution will remain effective if the return and payment are submitted via eFiling (or EFT) on or before the last business day of the month.
Last Payment Date for March 2013 is 28 March 2013
Due to the Easter weekend falling between 29 March and 1 April 2013, taxpayers are reminded that all returns and payments due in March 2013 must be received by SARS by no later than 28 March 2013. Any returns and payments due and payable by 31 March 2013 must be paid by no later than the last business day before the Saturday, Sunday or public holidays as described in the relevant Acts.
Saica: Summary of budget proposals
Saica News Comprehensive notes on various tax; tables included. The following is a summary of the tax related budget proposals announced by the Minister of Finance on 27 February 2013. BUDGET HIGHLIGHTS The main tax proposals for 2013 include the following: • An employment tax incentive targeted to support young workers and those employed in special economic zones. • Individuals whose taxable income is from one employer and is below R250 000 a year are not required to submit income tax returns. • Levies on fuel increase by 23c per litre from 3 April 2013.
Youth Tax Will Work – Motlanthe
Youth tax will work: Motlanthe Sapa News Employers would get money back through the Pay As You Earn system for hiring unemployed young people. Government is confident the controversial youth wage subsidy, now called the youth wage incentive scheme (Yeti), will work, Deputy President Kgalema Motlanthe said on Wednesday. Replying to questions in the National Assembly, Motlanthe dismissed a notion by DA MP Tim Harris that the Yeti was similar to its namesake, the Himalayan mythical creature, also known as the abominable snowman.
What are the steps in calculating the income tax owed?
What are the steps in calculating the income tax owed? The Income Tax Act No. 58 of 1962 sets out a series of steps to be followed in calculating a taxpayer’s “taxable income”. This then forms the foundation on which tax liability is calculated. These steps are briefly set out below and are tackled in greater detail in the explanations that follow. 1. Determine gross income
Welcome
I would like to sincerely welcome you to my taxation blog. Taxation has always been a worry to many people. Others have tried to avoid it in either not paying tax or not wanting to know more about it. The aim of this blog is to demystify taxation. Useful guides will be posted, latest tax news will be re-written in normal language terms in which everyone will understand. Seat back, relax and keep on watching this space.
VAT on forfeited deposits revisited
By Gerhard Badenhorst (ENS Tax Ensight) Executive summaryFor VAT to be levied there must be a supply of goods or services. This article examines the VAT consequences of taking deposits and deposits forfeited by looking at judgments by the ECJ and Australian courts.
Budget 2013 – Share Schemes
By Andrew Lewis (DLA Cliffe Dekker Hofmeyr) Executive summary Share incentive schemes were again mentioned in this year’s tax budget proposals. It thus appears that the broad-based employee share plan contemplated in s8B of the Income Tax Act will be reviewed and possibly merged with s8C of the Income Tax Act into a single employee share scheme regime.
Maintenance contracts: making commercial sense of section 24C
ENSafrica Ehrhard Furstenburg The Commissioner of the South African Revenue Service (“the Commissioner”) has recently published a Draft Interpretation Note (“the Draft”) on the allowance of future expenditure on contracts in terms of section 24C of the Income Tax Act 58 of 1962 (“the Act”). In the Draft the Commissioner has taken a firm view on what he regards as “a high degree of probability and inevitability” that expenditure will be incurred, especially with regards to maintenance contracts. The view taken by the Commissioner may very well lead to many taxpayers, particularly vehicle manufacturers, having to reconsider the fine print of their maintenance plans and contracts ultimately resulting in an additional cost burden spilling over to consumers.