Summary
Summary Individuals
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Summary of taxation calculation for an individual in South Africa based on 2017 legislation
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Individuals
Exemptions from gross income specific to individuals
Uniform 10(1)(nA)
Where required to wear special uniform while on duty any benefit or allowance
to value of uniform exempt
Clearly distinguishable from normal clothing
It must be a condition of employment to wear it
Relocation benefits 10(1)(nB)
Applicable where appointed, transferred, dismissed
Moves at ERs insistence and ER pays, amount not taxed in EEs hands
Costs incl. transp, settling-in, hire of temp acc < 183 days
Not taxed on amts paid by ER or reimbursed to EE for sale of previous res and
settling in new permanent res
Bond reg, legal fees, transfer duty, cancellation bond, agent comm
FOLLOWING TAXABLE:
Reimbursement for loss on prev res
Architect’s fees for design and alteration of new home
Ship Crew 10(1)(o)(i)
Int transp for reward of passengers or goods
Outside RSA > 183 days
If a mining or exploration vessel, crew member must serve sole purpose to
facilitate passage
Ship or crew member on ship
Bursaries and Scholarships 10(10(q)
Bona fide B or S to study at recognised institution
If granted by ER to EE or EE relative
Only exempt if EE pays back on failure
If relative then R15k HS and R40k Uni
If rem above R400k for year then N/A
Contracted to conditional funding based on working or passing
Study simply requires pursuit of enhanced knowledge and intellect not
necessarily a degree
Where a loan is obtained it is not taxable but waived portions are not exempt
Reward for completion or performance taxed par (c)
OTJ not exempt
, Allowances and Advances
Include in GI
Exclude amt expended in discharging duties
Reimbursive allowances 8(1)(a)(ii)
Exc from TI
Paid to EE by ER
ER has instructed to incur exp
EE must account and provide proof
Travel Allowance 8(1)(b)
Two allowances one for transp exp and one for use of car
Ii presumes EE owns car but not necessary
ER owns car can only deduct actual exp on biz
Transp incl pvt use, office worker who does not travel on bus full incl
8(1)(b)(ii)
Two ways to determine bus travel
i) Actual log book
ii) Deemed cost per km (log book with bus kms)
Deemed cost
Rate per km will be
a) FC / TD in YOA +
b) Fuel cost where borne full cost +
c) Maint cost where full cost borne
Value of vehicle
Acquired in bona fide market trans original cost incl VAT is value exlc fin costs
and vehicles acquired at end of lease or
Where Lessor is FSP cost to FSP
Where Lessor is dealer normal selling price in cash
In any other case it is the MV at time vehicle was obtained incl VAT
Actual Costs
Vehicle value ltd 560k
7 year period
Fin costs ltd if total cost 560 similarly with lease pmts
Apportion total cost between pvt and bus use
Other option
Reim all bus travel <= 8000km deduct 329c p/km
Based on km travelled
Cannot receive any other allowance
IF give use and allowance then no allowance deductible
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