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As from the 1st March 2016, the tax treatment of pension, retirement annuity and provident funds will be changed so that contributions made by the employer will be a fringe benefit.

Basically, it means that there will be an increase in the amount payable for UIF and SDL payable from employees and employers.

These contributions will be allowed as deductions in the employee’s hands and will be limited to 27% of the greater of the remuneration of taxable income (excluding lump sums received) but capped at an annual limit of R350,000.00, Excess contributions will be carried forward into the following year of assessment.

Only the employee may claim contributions (both in respect of the employer and the employee contributions)


Going forward , pension and retirement annuity funds will all be subject to the one third lump sum and two-thirds annuity rules, unless the lump sum is below R150,000.00.The annuitisation threshold for pension and RA fund members increases R247,500 on 1 March 2016 (previously R75,000).

Members may benefit from the new definition of the base against which the deduction is measured. This base is now the higher of “gross remuneration or taxable income”. The base was previously defined as “approved remuneration” for pension funds and “pensionable income” for provident funds (as defined by the employer).

The reference to “taxable income” effectively enables pension and provident fund members who receive outside income (income from rental income, alternate employment or investments) to claim a pension fund deduction against such income. Previously such “outside” income could only be used to claim deductions on RA contributions. Members who wish to top up their retirement fund savings will no longer need to take out a separate RA.


SARS no longer allows claims for income protection for the 2016 year of assessment which used to be claimed under source code 4018. If you manually capture this amount on your ITR12, you will not be able to submit your income tax return. In cases where source code 4018 is pre-populated on your ITR12 for the year of assessment 2016, your income tax return will be received by SARS but this amount will not be allowed on assessment.

Changes to the ITR14 fields

The following changes to fields that need to be completed should be noted:

  • Disclose donations separately in respect of section 18A on the ITR14. For a company that is not a collective investment scheme, the allowable donations will be limited to 10% of taxable income and the remaining balance will be carried forward to the next year of assessment. For collective investment schemes, the allowable section 18A donations will be limited to 0,005 of the average value of the aggregate of all participatory interests held by investors in the portfolio. Donations that are disclosed in the Income Statement will automatically be deducted in the tax computation.
  • The details of investments in venture capital companies are required.
  • Provision has been made for debt reduction in respect of paragraph 12A (4) of the Eighth Schedule.
  • Transfer pricing related transactions have been expanded to request the details of the number of tax jurisdictions, countries and value per country.
  • Additional questions have been added to the ITR14 to assist SARS with the assessment.
  • Where a company claims PAYE credits, the IRP5 numbers related to the company will be pre-populated on the ITR14.
  • The tax computation has been extended to include additional fields aligned to changes in legislation

Not all that glitters is Gold,


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
Do any of the following apply to you for the tax year 1 March 2014 to 28 February 2015?

  • Did you conduct any trade* in South Africa?
  • Did you have an allowance such as a travel, subsistence or Office Bearer Allowance?  Check your IRP5/IT3(a) if unsure.
  • Do you hold any funds or assets outside South Africa that have a value of more than R200 000?
  • Did you have a local Capital Gain/Loss exceeding R30 000?
  • Did you get any income or Capital Gain in a foreign currency?
  • Do you hold any rights in a Controlled Foreign Company?
  • Did you get an Income Tax Return or were you asked to submit an Income Tax Return for the tax year?
  • Was your annual income* more than R70 700?

If you answered yes to any of the questions above, them you may need to submit a tax return.


We accept that you are a South African tax resident temporarily working Overseas. You will then still have to declare and possibly pay tax in the RSA on all your income.

The remuneration earned outside South Africa may qualify for an exemption from normal tax.

This would apply if you have been outside South Africa for a period or periods exceeding 183 full days in aggregate during any 12 month period and for a continuous period exceed 60 full days and the services (in respect of which the remuneration was derived) were rendered during that period.

‘Piet Nel, SA Institute of Tax Professionals

Taxpayers with disabilities or who have disabled family members are probably not making full use of the tax deductions to which they are entitled.

A lack of knowledge by taxpayers and their tax practitioners is the reason taxpayers affected by disabilities are not claiming the tax deductions to which they are entitled.


There are three broad categories of disability-related expenses you can claim against your taxable income.

The three categories are:

* Medical scheme contributions;

* Un-recouped medical expenses; and

* Expenses you necessarily incur as a result of a disability. These expenses are the most complex and often result in the highest deductions.

The Income Tax Act defines a disability as a “moderate to severe limitation” of the ability to function or perform daily activities as a result of a physical, sensory, communicative, intellectual or mental impairment. This is interpreted to mean a significant restriction in your ability to function or perform one or more basic daily activities after maximum medical correction.

Your disability or that of a family member (including children) must either have lasted for more than a year or be expected to last for more than a year, and you must have been diagnosed by a registered medical practitioner (anyone registered with the Health Professions Council, including speech therapists, occupational therapists and psychologists).

The change in the definition means that taxpayers can claim for a much wider spectrum of disabilities than those of which you may typically think.

It is estimated that one in every 110 children has autism, many people suffer from attention deficit hyperactivity disorder, and the treatment of severe depression and learning difficulties could be tax-deductible,

The South African Revenue Service (SARS) has published a list of qualifying disability-related expenses, which, it says, is not exhaustive.

SARS simply provides some examples of expenditure that can be claimed, and many more substantial expenses have been claimed successfully.

The list includes aids and devices, such as hearing aids and insurance of hearing aids; orthopaedic or surgical equipment; wheelchairs and crutches; travel and related expenses; the cost of hiring a caregiver; remedial school fees; products required for incontinence; and the cost of modifications to assets.

While you cannot claim for an asset itself – for example, a motor vehicle – you can claim for the cost of modifying a vehicle to permit a person with a disability to gain access to it or to drive it.

Substantial capital expenses, such as those incurred in altering a home for a person in a wheelchair, nevertheless remain fully tax-deductible.Numbr4 Numbr3 Numbr Numbr 2

Numbrfactory – 0861 66 0007

 Leave Your Details Below To Find out How…

Members of the public are randomly emailed with false “spoofed” emails made to look as if these emails were sent from SARS, but are in fact fraudulent emails aimed at enticing unsuspecting taxpayers to part with personal information such as bank account details

These emails contain links to false forms and false websites made to look like the “real thing”, but with the aim of fooling people into entering personal information such as bank account details which the criminals then extract and use fraudulently.

SARS’s warning to Taxpayers:

Please note these are scams and SARS taxpayers should take note of the following:

  • Do not open or respond to emails from unknown sources.
  • Beware of emails that ask for personal, tax, banking and eFiling details (login credentials, passwords, pins, credit / debit card information, etc.) as SARS will never ask taxpayers for such information in an email.
  • SARS will not request your banking details through the phone, email or websites.
  • Beware of false sms’s

We have attached screen shots from a Phishing Attack

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The current tax framework exempts authors of copyright on revenue amounts received for the foreign assignment or licensing of copyright. More specifically, the exemption applies if the author is a natural person, the first owner of the copyright and the amount received is taxable in another country.   There is no similar exemption if the transfer of copyright is subject to capital gains taxation.

Reasons for change

The copyright blanket exemption for residents is out of sync with the current world-wide taxation paradigm and does not take into consideration the provisions of DTAs. As a general matter, South Africa has a primary taxing right in respect of the foreign transfer of copyright by a resident unless the transfer is attributable to a foreign permanent establishment. On the other hand, royalties received in respect of the foreign licensing of copyright are subject to a residual secondary taxing right. The exercise of the secondary taxing right means that South Africa will generally grant a credit (i.e. rebate) for the foreign taxes paid.

The change

The copyright exemption for authors has been deleted.

Effective date

The amendment will be effective for years of assessment commencing on or after 1 March 2014.

Amendment to section 10(1)(m) of the Income Tax Act and paragraph 64 of the Eighth Schedule