Tax Breaks Newsletter - Volume 2016, Issue 363, 2016
Volume 2016, Issue 363, 2016
Source: Tax Breaks Newsletter 2016, pp 1 –2 (2016)More Less
The recent Anglo Platinum case has put salary sacrifice arrangements under the spotlight once more. The validity of a salary sacrifice arrangement had been questioned by SARS, and Anglo Platinum had to prove that the arrangement was legitimate and carried out in accordance with what was agreed when the arrangement was entered into.
Author Xolani JadezweniSource: Tax Breaks Newsletter 2016, pp 3 –4 (2016)More Less
Any foreign pension, whether it is a government pension or a non-government pension, will be included in the gross income of a resident. However, Section 10(1) (gC) of the Income Tax Act exempts the portion of any pension or annuity received or accrued to any resident from a source outside South Africa.
Author Steven JonesSource: Tax Breaks Newsletter 2016 (2016)More Less
By the time you get to read this month's issue of Moneyweb's Tax Breaks, cricket's T20 World Cup will be just about done and dusted. While we as a nation are once again in collective mourning over yet another early exit from an ICC competition by the Proteas, the series has certainly served up some exciting moments.
Author Rob CooperSource: Tax Breaks Newsletter 2016, pp 5 –6 (2016)More Less
Author Esther Van SchalkwykSource: Tax Breaks Newsletter 2016 (2016)More Less
The 2016 Budget proposed the withdrawal of the withholding taxes on service fees paid to foreign persons before it could take effect on 1 January 2017. As this withholding tax introduced unforeseen issues, including uncertainty on the application of domestic tax law and taxing rights under tax treaties, Government proposed that it rather be dealt with as a reportable arrangement in terms of the Tax Administration Act. SARS presumably wants to be alerted to the payment of substantial service fees to non-residents for rendering services in South Africa, as it may indicate the existence of undeclared permanent establishments by non-residents in South Africa.
Author Ruaan Van EedenSource: Tax Breaks Newsletter 2016, pp 7 –8 (2016)More Less
SARS has recently issued Draft Interpretation Note 16 (Issue 2) (Draft IN) for public comment. When compared to the current Interpretation Note 16 (IN16), the Draft IN indicates a marked shift, on certain aspects, in SARS's interpretation of the tax exemption that applies to foreign employment income under Section s10(1)(o)(ii) of the Income Tax Act.