EFFECTIVE DATE
28.06.2010
REFERENCE GUIDE
PROVISIONAL TAX
REFERENCE GUIDE - PROVISIONAL
TAX
AS-IT-PT-01
Revision: 8
Page 1 of 12
EFFECTIVE DATE
28.06.2010
1
PURPOSE
•
This document provides guidelines for the completion of an IRP 6 return.
2
SCOPE
•
This document supplies sufficient guidelines and tax tables to ensure that the Taxpayer can
understand and complete the IRP 6 return and make the necessary payments timeously.
3
REFERENCES
3.1 LEGISLATION
TYPE OF REFERENCE
Legislation
and
Rules
administered by SARS:
Other Legislation:
International Instruments:
REFERENCE
Income Tax Act No. 58 of 1962: Section 1, 7, 10, 11, 89bis, 89quat,
Fourth Schedule: Paragraphs 1, 17(8), 19, 20, 20A, 21, 23, 23A, 27, 28,
and Eight Schedule
None
None
3.2 CROSS REFERENCES
DOCUMENT #
AS-IT-PT-01-A1
AS-IT-PT-01-A2
AS-IT-PT-01-A3
AS-IT-PT-01-A4
AS-IT-PT-01-A7
AS-IT-PT-01-A8
AS-IT-PT-01-A9
AS-IT-PT-01-A10
AS-IT-PT-01-A11
AS-IT-PT-01-A12
4
DOCUMENT TITLE
Example - First Period Persons Over 65
Example - Second Period Persons Over 65
Example - First Period Persons Under 65
Example - Second Period Persons Under 65
Example - First Period Trusts
Example - First Period Small Business Corporations
Tax Tables - 2011
Statutory Rates
Example - Second Period Trusts
Example - Second Period Small Business Corporations
APPLICABILITY
All
All
All
All
All
All
All
All
All
All
DEFINITIONS AND ACRONYMS
ATM
CGT
FNB
IRP 6
Paragraphs
PAYE
RSA
SA
SARS
Sections
The Act
Automatic Teller Machine
Capital Gains Tax
First National Bank
Return for Payment of Provisional Tax
Paragraphs in the Fourth Schedule to the Income Tax Act of No. 58 of 1962
Pay-As-You-Earn
Republic of South Africa
South African / South Africa
South African Revenue Service
Sections of the Income Tax Act
Income Tax Act No 58 of 1962
5
BACKGROUND
•
The new Provisional Tax Tables / Rates and instructions in this publication are for the 2011 year of
assessment.
•
All references to sections relate to the Income Tax Act No. 58 of 1962 (the Act) and references to
paragraphs relate to the Fourth Schedule of the Act.
REFERENCE GUIDE - PROVISIONAL
TAX
AS-IT-PT-01
Revision: 8
Page 2 of 12
EFFECTIVE DATE
28.06.2010
•
No documentary proof of income received, employees’ tax certificates or foreign tax credits should be
attached to the IRP 6 return.
•
The interest rates, applicable on late payments or to the under - or overpayment of tax, as used in the
instructions and the examples in this publication, are those as effective on 1 March 2010. The interest
rates may however change from time to time and will be published in the Government Gazette.
•
Further guidance and assistance can be obtained from your local SARS Branch Office.
•
This document is intended to be used as a basic guide and is not for legal reference.
●
With most provisional taxpayers making their submissions electronically, SARS will no longer send out
IRP6 returns to provisional taxpayers. The provisional tax forms can be requested, pre-populated,
captured and submitted via various channels. The forms can be requested via the following channels:
à
à
à
Accessing SARS eFiling at www.sarsefiling.co.za,
Visit the nearest SARS Branch Office; or
Call the SARS Contact Centre on 0800 00 SARS (7277)
6
GOVERNING LEGISLATION
•
The sections, schedules and paragraphs referred to in this publication are governed by the Income
Tax Act No. 58 of 1962.
6.1 PROVISIONAL TAX
•
Paragraph 1 of the Fourth Schedule to the Income Tax Act defines provisional tax.
•
Provisional tax forms part of the Pay-As-You-Earn (PAYE) method of tax collection.
•
It is not a separate tax but merely a mechanism to pay the income tax during the tax year in which the
income is earned.
•
By paying the amounts due in terms of your provisional tax liability you will prevent large amounts of
tax due by you on assessment as the tax load is spread over the relevant year of assessment.
•
In terms of Paragraph 28, provisional tax payments are not refundable. Such payments will be set off
against the liability for normal tax for the applicable year of assessment.
7
PROVISIONAL TAXPAYER
•
With reference to the definition of Provisional Taxpayer in Paragraph 1, a provisional taxpayer is:
à
à
à
Any person (other than a company) who derives income, other than remuneration or an
allowance or advance as contemplated in section 8(1).
Any Company excluding Public Benefit Organisations and Recreational Clubs.
Any person who is notified by the Commissioner that he is a provisional taxpayer.
8
DIRECTORS OF PRIVATE COMPANIES & MEMBERS OF CLOSE
CORPORATIONS
•
As from the 2007 year of assessment, directors of private companies and members of close
corporations are not required to register as provisional taxpayers.
9
REGISTRATION OF A PROVISIONAL TAXPAYER
•
In terms of Paragraphs 17(8) and 20A a person who becomes liable for the payment of provisional
tax must, within 30 days of becoming liable, apply in writing for registration at the local SARS
REFERENCE GUIDE - PROVISIONAL
TAX
AS-IT-PT-01
Revision: 8
Page 3 of 12
EFFECTIVE DATE
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branch office. Failure to do so will result in interest and penalties being levied on late payments and
additional tax for the late rendition of such returns. Refer to “Interest, Penalty and Additional Tax” in
this publication.
10
WHO IS EXEMPT FROM THE PAYMENT OF PROVISIONAL TAX
•
The following persons / natural persons are not required to pay provisional tax:
à
à
à
à
à
à
•
Any person whose income is derived solely from remuneration.
Any person who does not carry on a business and whose income does not exceed the tax
threshold, which is R57 000 for persons under 65 and R88 528 for persons over 65.
The taxable income of any person which is derived from interests, dividends, and rental from
the letting of fixed property will not exceed R20 000.
o
The investment income exemption amounts for 2011 are R22 300 for persons under 65
or R32 000 for persons over 65. Foreign interest and dividends are only exempt up to
R3 700.out of the total exemption.
Any person 65 years or older is exempt from the payment of provisional tax if:
o
the taxable income for the tax year does not exceed R120 000 and consists of
remuneration, pension, interest, dividends or rental income from the letting of fixed
property; and
o
he /she do not carry on any business.
Non-resident ship and aircraft owners that are required to make payment under section 33
of the Act are exempt from paying provisional tax.
Non-resident who are physically absent from the country for 183 days are exempt from interest.
Example 1: Person under 65 years:
à
This person will not be regarded as a provisional taxpayer as there is no taxable portion of his /
her investment income.
Salary income
Local Interest Income
Less: Exempt portion
Total Taxable Income
•
R 61 000
R 12 000
R 22 300
R
0
R 61 000
Example 2: Person 65 years and older:
à
à
à
As the taxpayer is over 65, has no business income and the total taxable income is less than
R120 000, he / she is exempt from the payment of provisional tax.
If the exemption applies to you and you received an IRP 6 return, the return must be endorsed
accordingly and returned to the SARS branch office
This exemption applies only to provisional tax. You may still be liable for income tax if your
income exceeds the tax threshold
Pension income
Local Interest Income
Less: Exempt portion
Total Taxable Income
R 61 000
R 28 000
R 32 000
R
0
R 61 000
11
THE TAXABLE INCOME EXAMPLES
•
TRUSTS
•
For an example of the taxable income calculation for a Trust refer to annexures AS-IT-PT-01-A7 and
AS-IT-PT-01-A11. Example: First Period: Trusts and Example Second Period Trusts:
REFERENCE GUIDE - PROVISIONAL
TAX
AS-IT-PT-01
Revision: 8
Page 4 of 12
EFFECTIVE DATE
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Income of trust
Less: Allowable expenses
Less: Distribution to beneficiaries
Taxable Income
R187 000
R 55 000
R 21 000
R 76 000
R111 000
•
SMALL BUSINESS CORPORATIONS
•
For examples of the taxable income calculation for a Small Business Corporations refer to annexture
AS-IT-PT-01-A8 AND AS-IT-PT-A12. Example: First Period: Small Business Corporationsand
Example Second Period: Small Business Corporations and Example Second Period:
à
Example 1
Income of Small Business
Corporation
Less: Allowable expenses
Taxable Net Profit
à
R298 000
R 55 000
R 55 000
R243 000
Example 2
Income of Small Business
Corporation
Less: Allowable expenses
Taxable Net Profit
R400 000
R 55 000
R55 000
R345 000
12
WHEN MUST PROVISIONAL TAX BE PAID
•
In terms of Paragraphs 21, 23 and 23A, the due dates for payments are:
à
à
à
à
à
à
•
First period: This payment must be made within six months from the commencement of the
year of assessment and half of the tax liability, for the full tax year, is payable.
Second period: This payment must be made not later than the last day of the year of
assessment or approved financial year-end date.
In the case where a February financial year-end creates financial hardship and approval has
been obtained from SARS to submit financial statements to a date other than the end of
February, such persons may also request approval to submit provisional tax returns in line with
the approved financial year-end. All other income however remains in the year of assessment
ending 28/29 February. (Applicable to Individuals and Trusts only).
Third period: Also known as “additional” or “topping-up” provisional payment. If such a
payment is made; it must be paid not later than the ‘effective’ date.
o
Where the year of assessment ends on 28 / 29 February the effective date is seven
months after the financial year end, which is 30 September.
o
For an approved financial year end which ends on a date other than 28 / 29 February, the
effective date will be six months after the financial year end e.g. financial year end is
30 April 2011, the effective date will therefore be 31 October 2011.
The third payment is a voluntary payment which any provisional taxpayer can make. However
taxpayers (other than companies) with a taxable income more than R50 000 or companies with
a taxable income of R20 000 or more, may make a third voluntary payment to avoid interest in
terms of Section 89quat(2) being levied on any underpayment of tax on assessment.
The purpose of this payment is therefore to enable taxpayers to pay the difference between
employees’ tax and provisional tax already paid for the year and the total tax liability for the year
of assessment.
Example of payment dates:
à
The following example refers to a 28 February 2011 year-end (2011 tax year):
o
First provisional tax payment due on
31 Aug 2010
REFERENCE GUIDE - PROVISIONAL
TAX
AS-IT-PT-01
Revision: 8
Page 5 of 12
EFFECTIVE DATE
28.06.2010
o
o
Second provisional tax payment due on
Third or voluntary payment due on
28 Feb 2011
30 Sept 2011
13
FORMS USED FOR ESTIMATES AND PAYMENTS
•
In terms of Paragraph 19(1) an IRP6 return must be completed for provisional tax purposes.
à
These returns are:
o
An IRP 6 for individuals;
o
An IRP 6 for trusts; and
o
An IRP 6 for companies.
•
IRP6(3) – Payment for additional provisional tax. IRP6 (3) additional returns will no longer be
issued. Should you wish to make a voluntary payment; the payment advice can be obtained from the
SARS website at www.sars.gov.za or at your nearest SARS branch office.
•
IRP 6 returns for first and second period must be submitted even if, according to the result of your
calculation, no provisional tax is payable.
•
For your convenience, the payment advice portion of the IRP6 return is at the bottom of the the
page.Your return can therefor be submitted separately from your payment.
14
ESTIMATE OF TAXABLE INCOME
•
Paragraph 19 states that every provisional taxpayer must, during every period, submit an estimate of
the total taxable income which will be derived by him / her in respect of the year of assessment for
which the provisional tax is payable.
•
Basic amount - The basic amount is deemed to be that of the taxable income less any taxable capital
gain and the taxable portion of any lump sum of the latest preceding year assessed in respect of
which an assessment notice was issued not less than 60 days before the date on which the estimate
is submitted.Where the basic amount submitted as an estimated taxable income ending a year after
the latest precededing year of assessment, the basic amount will be increased by an amount equal to
eight per cent per annum of that amount,from the end of such year to the end of the year of
assessment in respect of which the estimate is made.
•
The “year last assessed”, as shown on the IRP6 return, will refer to an assessment which was
issued at least 60 days prior to the payment due date of such period.
•
IRP6 returns for :
à
à
•
First Period:
à
•
First period:
o
The first period shows the taxable income of the last year assessed less the amount of
any taxable capital gain (if applicable) to arrive at the basic amount.
Second period:
o
The second period shows the taxable income of the last year assessed less the amount
of any taxable capital gain (if applicable) to arrive at the basic amount.
To avoid undue penalties and interest being raised make sure that the IRP6 returns are signed
and completed in full and are submitted well before the payment due date to the relevant
SARS branch office, through eFiling or by post. This will ensure that your request is received
and processed in time.
Second Period:
à
The provisional taxpayer is required to make a more accurate estimation of taxable income.
REFERENCE GUIDE - PROVISIONAL
TAX
AS-IT-PT-01
Revision: 8
Page 6 of 12
EFFECTIVE DATE
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à
à
•
Provisional taxpayers with a taxable income up to R1 million
o
An estimated taxable income for the second period must be equal to the lesser of the
basic amount or 90% of the actual taxable income for the year.
o
Additional tax of 20% will be imposed on assessment on an under-estimated taxable
income in respect of the second period of the difference between the amount of normal
tax and the lesser of the following:
ƒ
The amount of normal disclosed for provisional tax purposes in respect of a taxable
income equal to 90% of the actual taxable income; and
ƒ
The amount of normal tax disclosed for provisional tax purposes in respect of a
taxable income equal to a basic amount at the applicable rates.
Provisional taxpayers with a taxable income above R1 million
o
An estimated taxable income for the second period must be equal to 80% of the actual
taxable income for the year.
o
Additional tax of 20% will be imposed on assessment on an under-estimated taxable
income in respect of the second period.
o
The additional tax will be imposed on the difference between the normal tax as disclosed
for the provisional tax purposes and the amount of normal tax on 80% of the actual
taxable income.
Third Period:
à
The third period (voluntary) payment should be based on actual taxable income as the purpose
of this payment is to enable you to pay the difference between employees’ tax plus provisional
tax already paid for the year and the full tax liability for that tax year.
15
NON-COMPLIANCE TO PROCEDURES
•
Paragraph 19(2) stipulate that if you fail to submit an estimate the Commissioner may estimate the
taxable income and determine the amount payable thereon. Such an estimate is final and conclusive.
•
Paragraph 19(3) estimates:
à
à
à
•
Paragraph 19(3) may ask you to justify any estimate submitted by you or to furnish full
particulars of income and expenditure if your estimate of taxable income is not in accordance
with prescribed procedures or the reason submitted for a lower estimate is not acceptable.
If no satisfactory response is forthcoming from you or if SARS is not satisfied with your
response, the estimate may be increased to an amount which is considered reasonable. You
will be notified accordingly. SARS will issue you with a revised estimate which will be used to
calculate your provisional liability.
More information in this regard can be found in “Interpretation Note 1 of 2001” which is
available on the SARS’ website www.sars.gov.za.
Outstanding Provisional Tax:
à
à
Interest on any outstanding provisional tax payable for the first period will be limited to the day
prior to the second period provisional tax payment due date.
Any outstanding interest / penalty for the first period will be carried over to the second period.
Refer to example AS-IT-PT-01-A4.
16
CALCULATION OF PROVISIONAL TAX
•
Paragraphs 19(1), 21 and 23A regulate the calculation of provisional tax payable for the applicable
period and are as follows:
à
•
The amount of tax payable is determined on the estimated taxable income. Consult the tax
tables or the relevant statutory tax rates and the applicable tax rebates as presented in this
publication.
The First Period represents:
REFERENCE GUIDE - PROVISIONAL
TAX
AS-IT-PT-01
Revision: 8
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EFFECTIVE DATE
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à
à
à
•
The Second Period represents:
à
à
à
à
•
half of the total tax for the full year;
less the employees tax deducted for this period (6 months);
less any allowable foreign tax credits for this period (6 months).
the total estimated tax for the full year;
less the employees tax paid for the full year;
less the any allowable foreign tax credits for the full year;
less the amount paid for the first period.
The Third Period represents:
à
à
à
à
the total tax payable for the full year;
less the employees tax paid for the full year;
less the any allowable foreign tax credits for the full year;
less the amount paid for the 1st and 2nd provisional tax periods.
17
PAYMENTS
•
Paragraphs 21 and 23 stipulate that payments must be made on the prescribed IRP 6 return’s
payment advice, on or before the payment due dates. Also refer to “When must Provisional Tax be
paid” in this publication.
•
The following methods to effect payments to SARS are available:
à
à
à
•
Provisional tax payments may be made at any SARS Branch Office, Mondays to Fridays,
between 08h00 and 15h30, excluding public holidays.
Where payments are made by mail, via the bank or ATM, sufficient time for mailing or
processing must be taken into account.
Where payments are done electronically, provision must be made for your bank’s cut-off
times and for a clearance period that could take between two and five days.
Banking details:
à
à
à
à
Clients paying over the counter at any ABSA, FNB, Nedbank or Standard Bank branch will no
longer need to supply a bank account number and bank code when making payments. This
applies equally to all ABSA, FNB, Nedbank, and Standard Bank internet banking clients.
All that will be required is:
o
the client’s 19-digit payment reference number; and
o
the beneficiary ID / account number which is linked to a specific type of tax to make
payments.
These details are reflected on the payment advice of the IRP6 return.
Payments that do not comply with both the above-mentioned payment reference number and
the beneficiary ID will not be accepted.
•
If the last day for payment falls on a public holiday or weekend, the payment must be made on the
last working day prior to the public holiday or weekend. For more details refer to the SARS website
www.sars.gov.za.
18
INTEREST, PENALTY AND ADDITIONAL TAX
•
Refer to Sections 89bis, 89quat and Paragraphs 20, 20A and 27 regarding interest, penalties and
additional tax payable in respect of provisional tax.
•
Section 89 bis Interest:
à
Interest at the prescribed rate (currently 10,5% per annum subject to changes as published in
Government Gazette), is payable on late payments in respect of first, second and third periods.
REFERENCE GUIDE - PROVISIONAL
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EFFECTIVE DATE
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•
Paragraph 27 Penalties:
à
Penalty of 10% will also be levied on any late payment in respect of the first and second
periods.
•
Paragraph 20 Additional Tax:
•
Provisional taxpayers with a taxable Income up to R1 million
à
•
Provisional taxpayers with a taxable Income above R1 million
à
à
à
•
à
Interest in terms of Section 89quat is either levied on an underpayment of tax or paid on an
overpayment of tax from the ‘effective date’. See below for an explanation of the ‘effective
date’.
89quat(2) interest:
à
à
à
•
This additional tax may be imposed on assessment for the failure to submit a timely estimate
of income.
The additional tax is equal to 20% of the amount by which the normal tax payable exceeds the
sum of the provisional tax plus employees’ tax paid for such tax year.
89quat interest:
à
•
An estimated taxable income for the second period must be equal to 80% of the actual taxable
income for the year.
Additional tax of 20% will be imposed on assessment on an under-estimated taxable income in
respect of the second period.
The additional tax will be imposed on the difference between the normal tax as disclosed for
provisional tax purposes and the amount of normal tax on 80% of the actual taxable income
Paragraph 20A Additional Tax:
à
•
An estimated taxable income for the second period must be equal to the lesser of the basic
amount or 90% of the actual taxable income for the year.
o
Additional tax of 20% will be imposed on assessment on an under-estimated taxable
income in respect of the second period of the difference between the amount of normal
tax and the lesser of the following:
ƒ
The amount of normal tax disclosed for provisional tax purposes in respect of a
taxable income equal to 90% of the actual taxable income; and
ƒ
The amount of normal tax disclosed for provisional tax purposes in respect of a
taxable income equal to a basic amount at the applicable rates.
Interest, in terms of Section 89quat(2), is payable by a provisional taxpayer if the normal tax
exceeds the ‘credit amount’ (i.e. an underpayment of tax) and if:
o
in the case of an individual or trust, the taxable income for the year of assessment
exceeds R50 000, or
o
in the case of a company, the taxable income for the year exceeds R20 000.
This interest is levied at the prescribed rate (currently 10,5 % p.a. subject to changes as
published in Government Gazette), and is calculated from the day following the ‘effective date’
to the day before the first due date on the relevant assessment notice.
Interest on underpayment paid by a taxpayer is not tax deductible.
Example-89quat(2) interest:
à
If the first due date on the assessment notice is 1 December 2011, interest on underpayment for
the 2010 year of assessment (February year-end) will be calculated from 1 October 2011 to
30 November 2011.
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EFFECTIVE DATE
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•
89quat(4) interest:
à
à
à
•
The ‘effective date’ is:
à
à
•
Interest is payable to a provisional taxpayer if the ‘credit amount’ exceeds the normal tax
payable for that year of assessment and:
o
the amount exceeds R10 000; or
o
in the case of an individual or trust, the taxable income for the year of assessment
exceeds R 50 000, or
o
in the case of a company, the taxable income for the year exceeds R20 000.
This interest is payable to the taxpayer at the prescribed rate (currently 6,5 % p.a. subject to
changes as published in Government Gazette) on the amount by which the ‘credit amount’
exceeds the normal tax and is calculated from the day following the ‘effective date’ to date of
refund.
Interest paid to a taxpayer by SARS on an overpayment is taxable and must be declared
under interest income in the income tax return for the tax year in which it is received.
where the year of assessment ends on 28 / 29 February, seven months thereafter, and
for approved financial year ends which end on a date other than 28 / 29 February, six months
thereafter.
The ‘credit amount’ in respect of a provisional taxpayer is the sum of:
à
à
à
all provisional tax payments (1st, 2nd and 3rd periods) made;
employees tax paid; and
allowable foreign tax credits for the applicable year of assessment.
19
EXEMPT PORTION OF INVESTMENT INCOME
•
In terms of Section 10(1)(i)(xv) of the Act the exempt portion of all interest and foreign dividend
income is as follows:
à
à
•
R22 300 for persons under 65 years; and
R32 000 for persons 65 years or older.
•
Foreign dividends and all interest income are taxable. This is applicable to individuals, companies
and trusts that are regarded as residents of SA.
The exemption in respect of foreign interest and dividends is limited to R3 700 out of the total
exemption. Any balance of the exemption must be offset against local interest income.
20
CAPITAL GAINS TAX (CGT)
•
Eighth Schedule and Paragraph 19(1) of the Fourth Schedule.
•
Certain capital gains realised on or after 1 October 2001 are taxable.
•
Where a taxable capital gain was included in the taxable income of the latest preceding tax year it is
excluded to determine the basic amount for provisional tax purposes.
•
If any taxable capital gain is realised in the current tax year it must be included in estimated taxable
income for the relevant provisional tax period. This will prevent additional tax in terms of
Section 89quat(2) interest being levied on assessment.
à
à
à
à
•
The annual capital gain / loss exclusion is R17 500.
The primary residence exclusion is R1, 5 million, if the gross selling price is R2 million or more.
The primary residence exclusion is R2 million, if gross selling price is less than R2 million.
The annual exclusion on death is R 120 000.
Capital gains on the disposal of assets are included in a taxable income.
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EFFECTIVE DATE
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•
Inclusion rate of capital gains in taxable income:
à
à
à
Individuals and Special Trusts 25%;
Companies 50%; and
Trusts 50%.
21
RESIDENCE BASIS OF TAXATION
•
Section 1 defines a resident or a deemed resident as follows:
à
à
à
A person ordinarily resident in SA;
A person not ordinarily a resident in SA but physically present in the Republic for more than
91 days in aggregate during the year of assessment as well as during each of the preceding
5 years of assessment and physically present for more than 915 days in aggregate in the
preceding 5 years of assessment; or
A person other than a natural person, which is incorporated, established or formed in the
Republic or which has its place of effective management in the RSA.
•
All residents are subject to tax in SA on their worldwide income. Non-residents are taxed in SA on
income derived from a SA source or deemed source only.
•
Income from patents, designs, trademarks and / or copyrights is deemed to be the income of the
holder or owner of the said property.
22
TRUSTS
•
Section 1 defines a person and trust.
•
A trust consists of cash or other assets that are administered and controlled by a person acting in a
fiduciary capacity (trustee). Such person is appointed in terms of a deed of trust or by agreement or in
terms of the will of a deceased person.
•
A special trust is:
à
à
•
a trust created solely for the benefit of a person who suffers from mental illness or a serious
physical disability and such person earns insufficient income to maintain him / herself; or
a trust created in terms of the will of a deceased, solely for the benefit of beneficiaries who are
relatives in relation to that deceased person and who are alive or conceived but not yet born on
the date of the death of the deceased person.
Trusts are taxed at 40% except for special trusts and testamentary trusts established for the benefit of
minor children are taxed according to the rates applicable to individuals.
à
Should the Trust however have taxable income for a particular year of assessment, the IRP 6
return should be requested at the nearest SARS Branch Office or requested from SARS
Contact Centre on 0800 00 SARS (7277) or SARS eFiling at www.sarsefiling.co.za,
23
SMALL BUSINESS
•
For small business corporations, the following is applicable:
à
à
à
Firms with an annual turnover of up to R14 million will qualify for the special graduate corporate
tax regime;
The small business income tax exemption threshold has been increased from R54 200 to
R57 000.
The taxable income threshold remains at R300 000.
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EFFECTIVE DATE
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•
The once-off capital gains relief for small business is R750 000 for years of assessments commencing
on or after 1 March 2006.
•
Immediate 100 % depreciation exists for individual small items purchased for business purposes.
Assests purchased on or after 1 March 2006 the threshold is R5 000.
24
QUALITY RECORDS
Number
IRP6 return
IRP6(3)
IRP6 – Companies
IRP6 – Companies
IRP6 – Trusts
IRP6-Individuals
25
Return of Payment of Provisional Tax
Payment advice for additional provisional tax
Return of Payment of Provisional Tax for Companies
Return of Payment of Provisional Tax for Close Corporations
Return of Payment of Provisional Tax for Trusts
Return of Payment of Provisional Tax for Individuals
DOCUMENT MANAGEMENT
Designation
Business Owner:
Policy Owner:
Author:
Detail of change from previous revision:
Template number and revision
REFERENCE GUIDE - PROVISIONAL
TAX
AS-IT-PT-01
Name / Division
Group Executive: Enterprise Business Enablement
Executive: EBE - Process Solutions – Assessment, Enforcement
and Services Portfolio
Magdeline Makhushe
Revision 7 - Incorporation of legislation changes (26.02.2010)
Revision 8 - Incorporation of legislation changes (28.06.2010)
POL-TM-07 - Rev 3
Revision: 8
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