The much anticipated increase is the first increase in the VAT rate since Sale of enterprise as a going concerns and subsequent issue of credit notes It is proposed that clarity will be provided for instances where an enterprise is acquired as a going concern and the acquirer of the enterprise will be entitled to issue credit notes for goods returned to the acquirer of the enterprise which were originally supplied by the seller of the going concern.
The provisions of the VAT Act relating to the application of an increase in the tax rate will apply to transactions where the applicable tax rates overlap.
The draft Carbon Tax Bill was published in November and 90 comments have been received to date. Government should rather look for ways to increase revenues by promoting economic growth; if a VAT increase is unavoidable, it should be targeted at luxury goods and discretionary spending than at day-to-day essentials.
A tyre levy will be implemented at a rate of R2. Tax revenues are projected to be R Zero rating Brown Bread The proposed amendment seeks to provide clarity and give effect to the original policy intent around the zero rating of the supply of brown bread.
Supporting small business heroes Some elements government spoke about in the Budget Speech included: In relation to divorce settlement orders, it is proposed that the withdrawal of retirement benefits arising from such settlements will be proportionally attributed as a reduction against the vested right i.
Here are a few of the issues keeping small and medium business owners awake at night, and some ways government could address their pain points. As a result, there is currently legal uncertainty as to whether the members of the joint venture may be held jointly and severally liable for the VAT debts of the joint venture.
To counter the effect of the increase in the VAT rate, relief will be granted in the form of the current zero rating of basic foodstuff and an above average increase in social grants. The shortfall for the current tax year is estimated to be between R50bn and R90bn. Voluntary disclosure rules for non-compliant taxpayers will be relaxed for a period of six months from 1 October to allow non-compliant individuals and firms to disclose assets held and income earned offshore.
The budget proposes to increase gross revenue collection by R Only the supply of brown bread and whole wheat brown bread will be zero rated.
The supply of cryptocurrency could result in administrative difficulties in the VAT system. The tax treatment of securities lending arrangements will be reviewed, inter alia, in relation to the month limitation and to take into account corporate actions during the term of the arrangement.
Interest-free loans to trusts will be categorised as donations. The VAT rate will increase with effect 1 April SARS will have access to country-by-country information on all large multinationals operating in South Africa.
The proposed amendments will result in it no longer being an offence for a vendor to re-issue the tax invoice with the correct information, the proviso being that the vendor maintains a proper audit trail to trace the initially issued document, the manner of cancellation and the reissued invoice.
The high tax exemption for CFCs will be revisited. The budget will lay out how the government plans on spending money — your tax money essentially — and how it plans to plug the gap on any shortfalls.
The proposed amendment will provide certainty that the VAT collection process will be applied across all branches and divisions of the vendor. To counter the effect of the increase in the VAT rate, relief will be granted in the form of the current zero rating of basic foodstuff and an above average increase in social grants.
What businesses would like to hear:The Honourable Minister of Finance read the South African budget speech on 24 February In this summary, we address only the revenue (i.e.
tax) side of the budget proposals. As this budget speech has received an unusual amount of interest, we have set out the tax proposals in more detail than usual, although this summary is not. In Full: SA Finance Minister Pravin Gordhan’s Budget Speech.
South African National Budget Speech delivered by Pravin Gordhan, Minister of Finance, 22 February Finance Minister Pravin Gordhan and business representative Jabu Mabuza at the Union Buildings in Pretoria.
Budget Speech by the Minister of Finance - February Budget Tax Guide for (For the year of assessment - 1 March - 28 February ) Please note: A tax pocket guide can be obtained from your nearest SARS branch.
For the People's Tax Guides forvisit the Treasury website. The National Budget speech for the /19 financial year will be delivered on Wednesday, 21 February It is scheduled to begin at Unlike the State of the Nation address, which was.
Budget speech in a nutshell: Life is going to get a bit more expensive This was a live blog and updates as they happened appear in full below. Gigaba ends his speech with thanks to. The Budget Speech, The Budget Review, including o The fiscal framework, o The revenue proposals, customs and excise duties and Fellow South Africans, growth rates of below 1 per cent fall short of what we need to create employment and reduce poverty and inequality.
The Treasury currently.Download