Direct Tax

26/10/2023

30/08/2018

Reimbursive travel allowance

A reimbursive travel allowance is where an allowance or advance is based on the actual distance travelled for business purposes (that is excluding private use). Such an allowance is subject to a prescribed rate per kilometre of R3.61 per kilometre with effect from 1 March 2018. Historically this allowance was limited to 12 000 km per annum, whereas it is now unlimited subject to actual business kilometres travelled.

Some key points to note:
Where the reimbursive allowance does not exceed the prescribed rate per kilometre AND no other compensation is paid to the employee, the amount is not subject to employees' tax, but the full amount must be reflected on the IRP5 certificate. Where the reimbursive allowance does not exceed the prescribed rate per kilometre however other compensation is paid to the employee, the amount is not subject to employees' tax, but the full amount must be reflected on the IRP5 certificate.Where the reimbursive allowance exceeds the prescribed rate per kilometre (irrespective of the kilometres travelled), the full amount above the prescribed rate is subject to employees’ tax.Where the reimbursive allowance exceeds the prescribed rate per kilometre (irrespective of the kilometres travelled) and other compensation was paid (travel allowance), the full amount above the prescribed rate is subject to employees’ tax.

20/11/2017

REVIEW: MEDIUM TERM BUDGET POLICY SPEECH



Overview

There was not much good news, with revenue shortfalls in 2017/18 projected to be R50 billion, R69 billion in 2018/19 and R89 billion in 2019/20. So, a collective shortfall over the next three years of over R200 billion, with limited detail on how to fund it. There is mention of the sale of state assets to fund the SAA bailouts etc. There appears to be no concrete plan of action besides the possible sale of some Telkom shares.

We appear to be stuck in a low growth trap, with limited vision for a way forward. There is immense political pressure to act in accordance with the wishes of key political figures and it appears that only a radical change in government leadership will result in the required growth and confidence in the economy that will enable radical economic transformation.

Tax measures

Carbon tax is firmly back on the agenda. In minister Gigaba’s speech he comments as follows:

“I am also happy to announce that Cabinet has approved the release of the carbon tax bill to Parliament for formal consideration and adoption.”

A revised draft bill will be published for public comment shortly. This will probably be early in 2018 with a view to implement during the 2nd half 2018.

Funding the current shortfalls in revenue is going to be, in part, via increased taxes. For instance, the issue of funding the National Health Insurance via adjustments to the existing medical tax credits is still being mooted. The Davis Tax Committee is being consulted on this issue to assess the viability of such changes. “Sugar Tax” is under consideration in Parliament with a proposed implementation date of 1 April 2018.

There is no doubt that a lot hinges on the outcome of December's political deliberations. The budget in February 2018 promises to be extremely interesting!

14/11/2017

PAY YOUR TAXES OR PAY THE PRICE"


SARS has announced an intensified drive to clamp down on non-compliant tax payers by intensifying criminal proceedings. There has been a significant increase in non-compliance, resulting partly in SARS not meeting revenue collection targets.

It is a criminal offence not to submit tax returns and could result in substantial fines or even criminal prosecution leading to imprisonment.
The following non-compliance penalties could be charged:

Fixed amount penalties

Fixed rate penalties can be imposed by SARS for non–compliance with any procedural or administrative action or duty imposed or requested, for example:
Not registering when required to
Not informing SARS where there is a change in registration details
Not filing returns
Not retaining records as required by SARS

25/10/2017

There are ONLY 30 days left to file your tax return. In no time, SARS will be closing their doors for tax return submissions.

01/11/2016

25-11-2016 - Deadline for eFiling submissions (non-provisional) for 2016 Tax Season

01/11/2016

25-11-2016 - Deadline for submissions at a SARS branch (non-provisional) for 2016 Tax Season.

01/11/2016

DO I NEED TO PAY TAX

People who pay income tax are generally individuals who earn an income e.g. from a salary, commission, fees, etc.
If you earn under R350 000 for a full year from one employer (that’s your total salary income before tax) and have no other sources of additional income (for example, interest or rental income) and no deductions that you want to claim (for example medical expenses, travel or retirement annuities), then you don’t need to submit a return.

22/05/2016