Relevant Acts Tax Administration Act 28 of 2011; Income Tax Act 58 of 1962; and SARS published Interpretation Note 177 in May 2021 providing guidance on the words “received by” in the definition of “gross income” in section 1(1) of the Income Tax Act and the treatment of the receipt…

In this article, we discuss the difference between a verification and an audit? Being selected for an audit and being selected for verification are two different processes. Verification is a face-value verification of the information declared by the taxpayer on the declaration or in a return. SARS will notify you…

Relevant Acts and documents Income Tax ActSARS Deferral of Payment Arrangements Guide on eFiling Acronyms relevant to this Guide and process: CIT Corporate Income TaxDWT Dividends Withholding TaxMCP My Compliance ProfileSOA Statement of AccountSARS South African Revenue ServicePAYE Pay As You EarnPIT Personal Income TaxSDL Skills Development LevyUIF Unemployment Insurance…

Reference Acts Income Tax Act no. 58 of 1962Value-Added Tax Act no. 89 of 1991 Sections 1(1) – definition of “gross income”, 11(a), 23(g) and 23h of the Income Tax ActSections 1(1), – definitions of “consideration”, “input tax”, “supply” and “services”, 7(1)(a), 10(23) and 21 of the Vat Act A…

Reference guides, standards and legislation SARS Accounting Guideline GRAP 23 - Revenue From Non-exchange TransactionsAccounting Standards Board - Standard of Generally Recognised Accounting Practice - Revenue From Non-exchange Transactions (taxes and transfers) (GRAP 23)Administration of Estates Act (Act 66 of 1965)Wills Act (Act 7 of 1953)Intestate Succession Act (Act 81…

Moonlighting is when a person earns extra money outside of working hours. Can the employee do moonlighting?Do employees have the right to have an additional job?Can the employer dismiss the employee for moonlighting?Is the employee accountable to the employer for income earning activities outside of working hours? During strenuous financial…

Relevant Legislation and Standards Income Tax ActIFRS 9 (for financial reporting purposes) Section 11(j) of the Income Tax Act 58 of 1962 (the Act), as amended, provides for an allowance of doubtful debts in respect of trade debts of the taxpayer. The amount of the allowance granted is in respect…

Reference documents and/or legislation Income Tax Act no. 58 of 1962, as amendedSecurities Transfer Tax Act no. 25 of 2007Companies Act No. 71 of 2008, as amended The reader is advised to also read our previous article of August 2021 titled "Company Memorandum of Incorporation Amendments - Shares and Share…

In this article we list the basics of what you should know for Section 18A donations and the  relevant laws. The reader is advised to also read our other articles published in 2021: “Non-profit organisation-related law and benefits in South Africa” Applicable laws for this article: Non-Profit Organisations Act 71…

Reference documents and Acts Employment Tax Incentive ActBinding Private Ruling: BPR 367 from SARSIncome Tax Act The Employment Tax Incentive (ETI) was introduced in 2014 to encourage the employment of younger workers, 18 to 29 years old, by offering an incentive which is set-off against the employees’ tax due each…