Category Taxation in South Africa

Tax Wealthy to Fund Universities in South Africa

October 28, 2015 Taxation in South Africa

PRETORIA – In order to help poor students attend higher education South Africa needs to tax the wealthy.

In an address to parliament on October 27th the Minister of Higher Education and Training of South Africa suggested that the government should introduce higher taxes to be paid by wealthy individuals in order to fund universities.

The Minister claimed that overall South Africa has enough wealth to fund free higher education for poor students, however, much of the funds are locked up in the private sector, outside of the government’s control.

He went on to say that “…my own considered view is that government must have the political will to tax the rich and the wealthy to fund higher education...

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South Africans Rush to Submit Tax Returns

August 25, 2015 Taxation in South Africa

PRETORIA – Almost half of all personal tax returns due this year in South Africa have already been submitted, eventhough there is more than a month left to go until the deadline.

Personal tax returns in South Africa are being filed faster rate this year than in the previous year, according to new information released in a new statement on August 24th by the South African Revenue Service.

As at August 20th at 5pm just over 2 million of the tax returns due to be submitted this year were filed through the tax authority’s online submission system.

The 2 million submitted tax returns represent 44.77 percent of all the tax returns due in, a level which is significantly higher than the 39.31 percent submitted at the same time in the previous year.

It was noted that the number of people still usi...

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Tax Season Launched in South Africa

July 2, 2015 Taxation in South Africa

PRETORIA – The tax season in South Africa has launched with a good start, lending credibility to the goal of raising SAR 1.1 billion from income taxes this year.

At midnight on June 31st the tax season in South Africa was opened, and by the end of the day on July 1st a total of 67 231 tax returns had already been filed.

The number of taxpayers filing their tax returns online in the first day in 2015 is 7 000 more than the number seen in the previous year, and according to a spokesperson for the South African Revenue Service Luther Lebelo, the good start to the tax season is a strong sign that South Africans have high confidence in the national tax system.

Luther Lebelo also added that this year the minimum threshold for tax filing has been raised to a level of SAR 350 000 from last year’...

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South Africa Fails to Tax Digital Goods

May 14, 2015 Taxation in South Africa

PRETORIA – Tax laws in South Africa need to be updated in order to properly tax modern digital goods.

In a press conference held on May 12th the head of indirect taxation of PwC Africa Charles de Wet warned that the tax regulations currently in place in South Africa do not adequately keep up with the modern business environment, in relation to the sale of electronic goods.

It was claimed that currently many international businesses supplying goods such as electronic goods such as music, movies, games, apps and ebooks, via the internet to South African consumers do not fall under the scope of national legislation for VAT.

As the provided digital goods are not subject to VAT there is a significant price discrepancy when the same products are provided by suppliers based within South Africa.

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South Africa to Raise Income Taxes

February 26, 2015 Taxation in South Africa

PRETORIA – South Africans will soon be paying more taxes on their incomes, fuel, alcohol, and cigarettes.

In a speech delivered on February 25th the Minister of Finance of South Africa Nhlanhla Nene announced that the rate of tax on personal incomes will be raised for all but the lowest income-earners in the country.

The new increase in the rate of tax on personal incomes is the first hike since 1995, and will apply to all income brackets except for individuals earning less than ZAR 181 000 per year, and following the hike, the top marginal tax rate on incomes will rise to 41 percent.

In addition to the increase in income taxes, the government will also raise the national fuel levy by ZAR 0.805 per litre, noting that the rise will be offset by the recent drop in fuel prices.

The taxes on...

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