OCCUPATIONAL CERTIFICATE...employee’s remuneration for employees’ tax purposes with regards to the travel allowance received. (2) For the month of February 2017, an amount of R20

1

OCCUPATIONAL CERTIFICATE:

TAX PROFESSIONAL

SAQA ID: 93624

Initial Test of Competency

RPL Assessment

May 2018

Session 1: Paper/Questions 1 and 2

CANDIDATE NUMBER

2

Instructions to Candidates

1. This competency assessment consists out of 3 sessions (6 papers/questions).

2. This session comprises paper/questions 1 and 2.

3. Answer each question in a separate answer book.

Session 1:

Paper/Question

Topic Marks Answer Book

1 General awareness 30 Blue

2 Individuals (Personal tax) 30 Pink

Total marks: 60 Marks

Time: 3 hours and 30 minutes writing time

The marks specified are an indication of the expected length and detail of your

response.

4. Enter your examination number on the cover of each answer book as well as on

all answer sheets.

5. Your name must not appear anywhere in the answer books.

6. Answers may not be written in pencil and correction pens (Tipp-ex) may not be

used.

7. Answer the questions using effective presentation and pay particular attention to

the use of concise language, clarity of explanation and logical argument. Marks

will be awarded for these aspects of your response.

8. It is your responsibility to ensure that all answer books are handed in to the

invigilator before leaving the examination room, as answer books handed in

thereafter will not be marked.

9. Please take note of the additional instructions for Question 1: Multiple Choice

Question that count 30 marks (30 Questions).

10. Please take note of the tax rates and tables provided in Annexure A to this

paper (see page 23-24).

11. Round all amounts to the nearest Rand.

3

QUESTION 1: GENERAL AWARENESS [PART A TO PART D]

MULTIPLE CHOICE & TRUE FALSE

30 Marks

Each question in the first paper is a multiple-choice question with five answer choices. Read each question and answer choice carefully and choose the ONE best answer. Please use the Multiple Choice Answer Grid that was included and mark one box only for each question. Only use a pencil and make a (X) over the correct choice.

Assume that all taxpayers mentioned in the multiple choice questions below are all residents

of the Republic of South Africa.

PART A - INDIVIDUALS / PAYROLL TAXES

1. Peter Smith obtained the right of use of a motor vehicle with a retail market value of

R315 000 (including VAT) from his employer, who is not a motor vehicle dealer, on 1

March 2016. The employer obtained the vehicle on 1 March 2016 under an operating

lease as defined in section 23A(1) of the Income Tax Act from a non-connected person

at a monthly rental of R1 850 (including VAT). The employer is a registered VAT

vendor. The vehicle is subject to a maintenance plan. Peter kept a logbook which

indicated that of his total kilometres travelled during the 2017 year of assessment,

8 000 kilometres were for business purposes and 5 000 kilometres were travelled for

private purposes. The employer paid all fuel costs relating to the vehicle which

amounted to R12 750 for the 2017 year of assessment.

What is the cash equivalent of the value of the fringe benefit for Peter with regards to

the right of use of the motor vehicle granted to him, by his employer, for the 2017 year

of assessment?

A R50 885

B R34 950

C R22 200

D R47 250

E None of the above.

[1]

4

2. Mr and Mrs Turner are married in community of property. Which of the following items

of income will be deemed to accrue to each spouse in equal shares. Unless otherwise

stated, all income and assets fall inside their joint estate:

(1) Interest income earned by Mr Turner on his investment account with a local bank.

(2) Contributions made by Mrs Turner’s employer to a registered medical scheme on

her behalf.

(3) Income earned from the letting of an office complex. The office complex is

registered in the name of Mr Turner.

(4) Service income from an accounting business run by Mr Turner.

A (1) and (2)

B (1) and (3)

C (1), (3) and (4)

D (1)


[1]

3. Mrs Mokoma was granted a loan of R100 000 by her employer on 1 March 2016 at an

annual interest rate of 3%. She used the loan as funding to enable her to start a small

business from which she earned a respectable profit during the 2017 year of

assessment. You may assume that the official rate of interest remained constant at

8% throughout the 2017 year of assessment.

Which of the following statements are true?

(1) An amount of R8 000 will be included in Mrs Mokoma’s gross income as a fringe

benefit.

(2) This fringe benefit has no value.

(3) An amount of R5 000 will be included in Mrs Mokoma’s gross income as a fringe

benefit.

(4) In total, an amount of R3 000 will be allowed as a deduction against Mrs Mokoma’s

income in the current year of assessment as a result of the fringe benefit granted

to Mrs Mokoma.

5

(5) In total, an amount of R8 000 will be allowed as a deduction against Mrs Mokoma’s

income in the current year of assessment as a result of the fringe benefit granted

to Mrs Mokoma.

A (1) and (4)

B (2) and (4)

C (3) and (4)

D (3) and (5)


[1]

4. Mr Surty acquired 100 shares in his employer for an amount of R350 each, on the

condition that the shares may not be sold for a period of three years. The market value

of the shares on the date of acquisition by Mr Surty amounted to R1 000 each.

The following amount will be included in Mr Surty’s income in the year of assessment

in which the shares were acquired by him:

A R0

B R100 000

C R65 000

D None of the above.

E R35 000

[1]

5. An employee is given the right of use of a cell phone, to use for business purposes,

by his employer, for a period of five years. The cell phone was purchased by the

employer for an amount of R5 141 (excluding VAT) which is the same as the market

value of the cell phone. The employer is a registered VAT vendor and makes 100%

taxable supplies. The employee only occasionally uses the cell phone to make

personal calls.

What amount will be included in the gross income of the employee as a result of the

cell phone given to him by his employer?

6

A R5 141

B R5 861

C R0

D R771

E R720

[1]

6. Mrs Le Roux, who is 55 years old, retired from employment on 28 February 2017. She

received a gross lump sum of R1 250 000 from her employer’s pension fund on this

date. Mrs Le Roux had previously received a retirement fund lump sum withdrawal

benefit after resigning from her previous employer in 2015. The retirement fund lump

sum withdrawal benefit amounted to R250 000 at that date. All of Mrs Le Roux’s

contributions to retirement funds have been allowed as a deduction in the past.

The amount of tax payable in respect of the lump sum received from the pension fund

in the 2017 year of assessment is equal to:

A R252 000

B R292 500

C R202 500

D R200 000


[1]

7. Sibusiso, who is 65 years old, retired from employment on 1 February 2017. He

received a gross lump sum of R2 850 000 from his employer’s pension fund on this

date. He had not received any other lump sums or severance benefits during his

lifetime. The pension fund commenced with the payment of annuities from the

remainder of Sibusiso’s retirement savings on 28 February 2017. The amount of the

annuity paid on 28 February 2017 amounted to R31 200. Sibusiso’s disallowed

deductions from contributions to all retirement funds amounted to R2 861 000 on

1 March 2016.

The amount to be included in the income of Sibusiso in terms of the annuity received

from the pension fund for the 2017 year of assessment is:

7

A R0

B R31 200

C R20 200

D R11 000


[1]

8. A certain employee was reimbursed for business-related travel at a rate of R3.41 per

kilometre during the 2017 year of assessment. The employee kept records of actual

kilometres travelled which indicated that in total he travelled 7 500 kilometres for

business purposes during the 2017 year of assessment. Of the business kilometres

travelled, the employee travelled 1 110 kilometres during the month of February 2017.

He did not keep record of actual costs incurred for the year of assessment with regards

to the vehicle.

Which of the following statements are true?

(1) For the month of February 2017, an amount of R25 575 will be included in the

employee’s remuneration for employees’ tax purposes with regards to the travel

allowance received.

(2) For the month of February 2017, an amount of R20 460 will be included in the

employee’s remuneration for employees’ tax purposes with regards to the travel

allowance received.

(3) For the month of February 2017, an amount of R0 will be included in the employee’s

remuneration for employees’ tax purposes with regards to the travel allowance

received.

(4) The employee may elect to use a rate per kilometer of 329 cents when calculating

the taxable travel allowance for normal tax purposes.

(5) The employee may elect to use actual costs incurred when calculating the taxable

travel allowance for normal tax purposes.

8

A (3) and (4)

B (1) and (4)

C (2) and (4)

D (2), (4) and (5)


[1]

9. Mrs Ndaba is a provisional taxpayer. She received the notice of assessment for her

2016 year of assessment on 15 September 2016 which reflected a taxable income of

R233 450. The notice of assessment for the 2015 year of assessment was received

by her on 30 November 2015 and reflected a taxable income of R205 883. The notice

of assessment for the 2014 year of assessment was received by her on 1 March 2015

and reflected a taxable income of R180 000.

The basic amount with respect to the first provisional tax payment to be made by Mrs

Ndaba for the 2017 year of assessment is:

A R233 450

B R205 883

C R222 354

D R238 824

E R230 589

[1]

10. Mr Watson used to be a resident of the United Kingdom. He purchased a holiday home

in Mauritius in 2013 for an amount of R2 855 000 (correctly translated to South African

Rand). He immigrated to South Africa for the first time on 1 March 2016 and therefore

became a South African resident at that date. Mr Watson donated the holiday home

in Mauritius to his brother, a resident of the United Kingdom on 31 August 2016. At

the date of the donation, the market value of the holiday home amounted to

R3 467 000.

The donations tax payable by Mr Watson on the donation of his holiday home is:

9

A R693 400

B R673 400

C R0

D R102 400


[1]

PART B – COMPANIES (CORPORATE TAX)

11. Of the below statements, which one is true:

A A South African resident company that incurs an assessed loss during its

trading activities may offset this against gross income.

B Section 20 of the Income Tax Act, No. 58 of 1962, details ring-fencing

provisions for the assessed loss/losses of a South African resident company.

C An assessed loss in a South African resident company arises where the cash

outflows of a company exceed the cash inflows.

D If a South African resident company ceases trading, any prior year of

assessment’s assessed loss balances may not be carried forward to years of

assessment in the future when trading commences again.

E An assessed loss for a South African resident company for tax purposes is

exactly equal to an accounting loss for that company.

[1]

10


A Interest expenditures are generally deductible under section 11(a).

B For interest to be deductible for tax purposes, it does not need to have been

incurred for trade purposes.

C For interest to be deductible for tax purposes, it does not need to have been

incurred in the production of income.

D Interest that is incurred in the production of exempt dividends will be allowed

as a deduction for tax purposes.

E An interest receipt or accrual that is capital in nature will be included in the

gross income of a holder of an income instrument.

[1]

13. With regards to section 24C of the Income Tax Act:

(1) An allowance is granted under section 24C for future expenditure as defined.

(2) The section 24C allowance is allowed in circumstances where income is received

in advance for future expenditure not in terms of a contract.

(3) A prior year of assessment section 24C allowance for a South African resident

company has no effect on the tax calculation of that same company in the next

year of assessment.

(4) The section 24C allowance is granted for any future expenditure – whether or not

it qualifies to be tax deductible in any subsequent year of assessment.

(5) Future expenditure as defined includes expenditure that will be allowed as a

deduction but excludes allowances on capital assets previously acquired.

Which of the above statements are true?

A 1 and 5

B 2

C 3 and 4

D All of the above.


[1]

11

14. Of the below statements, which one is false

A The value of trading stock that is on hand and not sold at the end of the year

must be added back to the taxable income of a South African resident

company.

B Trading stock purchases of a South African resident company are generally

deductible under section 11(a).

C The value of trading stock that must be accounted for as closing stock for tax

purposes of a South African resident company is always cost, even if the

realisable value is lower than cost.

D A South African resident company may claim a tax deduction equal to the value

of stock held and not sold at the beginning of its year of assessment.

E The amounts received or accrued on the sale of trading stock in the ordinary

course of business of a South African resident company will be included in the

gross income of that company.

[1]

15. With regards to the base cost of assets in a South African resident company:

(1) One-third of the interest from financing the purchase of any asset may be included

in the base cost of that asset

(2) The amounts expended on improvements to an asset will be included in base cost,

whether or not the improvements still exist at the time of disposal

(3) Only amounts expended to purchase an asset will be included in base cost; costs

of creating an asset will not be included in base cost

(4) Installation costs actually incurred are not regarded as being closely connected to

the acquisition of an asset and will not form part of the base cost of that asset

(5) Legal costs actually incurred to defend a South African resident company’s legal

right to an asset may not be included in the base cost of that asset

Which of the above statements are false?

12

A 1 and 4

B 2 and 4

C 2, 3 and 5

D None of the above.

E All of the above.

[1]

16. With reference to a South African resident company:

(1) A JSE-listed South African resident company can be a small business corporation

in terms of section 12E.

(2) A South African resident company that has shareholders other than natural

persons can be a small business corporation in terms of section 12E.

(3) A South African resident company that is a micro business can be a small business

corporation in terms of section 12E.

(4) A South African resident company with taxable turnover exceeding R1 million can

be a micro business in terms of the Sixth Schedule.

(5) A micro business in terms of the Sixth Schedule to the Income Tax Act is taxed at

28%.

Which of the above statements are true?

A 1 and 5

B 2 and 4

C 1, 3 and 5

D All of the above.


[1]

13


A A South African resident company will not levy output tax on cash salaries paid

to employees.

B A South African resident company that imports goods from a foreign country

will pay no VAT on the import.

C A South African resident company must register for VAT when its taxable

supplies exceed R50 000.

D A South African resident company that is a registered VAT vendor is not

obliged to produce valid tax invoices for transactions.

E A South African resident company that is a registered VAT vendor can choose

to display all prices as excluding VAT.

[1]

18. With regards to donations tax of a South African resident company: Which statement

or statements are True?

(1) The donations tax rate for a South African resident company is 15%.

(2) If a South African resident company makes a donation, the company is always

fully liable for the donations tax, even if it does not make payment of the donations

tax.

(3) A South African resident company is entitled to reduce its taxable amount for

donations tax by R100 000 per section 56(2)(b).

(4) Donations made by a listed South African resident company are exempt from

donations tax.

(5) Where a South African resident company transfers assets for no consideration to

another taxpayer in return for services rendered, the transfer of assets will be a

donation.

A 4 and 5

B All of the above.

C 1, 2 and 3

D 4


[1]

14

19. With regards to dividends of a South African resident company:

(1) The current dividends tax rate is 20%.

(2) The beneficial owner of a dividend is the South African resident company paying

the dividend.

(3) The date of payment of a cash dividend for a listed South African resident company

and an unlisted South African resident company are the same.

(4) Where a South African resident company pays a dividend to another South African

resident company, the South African resident company receiving the dividend is

exempt from dividends tax (assuming all the necessary declarations and written

undertakings were supplied).

(5) Where a South African resident company pays a dividend to a natural person, it

must withhold the dividends tax.

Which of the above statements are false?

A 1 and 2

B 2 and 3

C 1, 4 and 5

D All of the above.


[1]

15


A A South African resident company is only a provisional taxpayer where its

gross income exceeds R20 million in any year of assessment.

B The estimate of taxable income to be made by a South African resident

company in terms of paragraph 19 of the Fourth Schedule may not be less than

the basic amount of that company, unless the circumstances of the case justify

the submission of an estimate of a lower amount.

C In determining the basic amount of a South African resident company, no

adjustments must be made to the assessment of the latest preceding year of

assessment.

D A South African resident company must make monthly payments of provisional

tax.

E A South African resident company must make its first provisional tax payment

7 months after the end of the year of assessment.

[1]

PART C – ANALYSIS OF FINANCIAL STATEMENTS

21. A resident company was awarded R30 000 as a prize in recognition of the company’s

job creation efforts in a specific region. This was the first such a prize the company

has received. For accounting purposes the R30 000 was recognised as ‘Other income’

and included in profit before tax. For tax purposes the R30 000 would be:

A Included in calculating taxable income as the receipt was recognised as

income for accounting purposes.

B Not included in calculating taxable income as the receipt is capital in nature.

C Included in calculating taxable income as the receipt is not capital in nature.

D Included in calculating taxable income as tax would be levied on prizes of over

R25 000.


[1]

16

22. A resident company ordered manufacturing machinery to the value of R350 000 during

their 2017 year of assessment and paid a deposit of R25 000. It is expected that the

machinery will be delivered during the company’s 2018 year of assessment. For

accounting purposes the R25 000 was recognised as the only ‘Prepaid expense’ in

the Statement of Financial Position during the 2017 year of assessment. For tax

purposes the following would apply in respect of R25 000 during the 2017 year of

assessment:

A Allowed as a deduction in terms of section 23H as the amount is less than

R100 000.

B Allowed as a deduction in terms of section 12C as it relates to a manufacturing

machine.

C No deduction in terms of section 23H or allowance in terms of section 12C

would be allowed.

D Only output VAT allowed.


[1]

23. A resident company purchased another company’s debtors list to the value of

R210 000 during the 2017 year of assessment with the intention of recovering such

debt as soon as possible in order to realise a profit. The resident company only

succeeded in collecting 90% of the purchased debtors during their 2017 year of

assessment and decided to write off the remaining 10% of the purchased debtors list

(being R21 000) as irrecoverable for accounting purposes. For tax purposes the

following would apply in respect of R21 000 during the 2017 year of assessment:

A Allowed as a deduction in terms of section 11(i) for the R21 000.

B Only 25% of the R21 000 would be allowed as a deduction in terms of section

11(j).

C No deduction in terms of section 11(i) or section 11(j) would be allowed.

D Only R5250 would be allowed as a deduction in terms of section 11(i).


[1]

17

24. In respect of trading stock a taxpayer recognised a write down to net realisable value

for accounting purposes. The trading stock was originally acquired at R45 000 and is

now recognised at R42 000 for accounting purposes after deducting the R3 000 write

down to net realisable value. For tax purposes the trading stock would be recognised

as follows in terms of section 22(1) of the Income Tax Act:

A At R42 000 on condition that the Commissioner accepts the write down of

R3 000.

B At R42 000 as the accounting treatment would always be accepted.

C At R45 000 as the accounting treatment would never be accepted for tax

purposes.

D At R42 000 or R45 000 depending on the choice of the taxpayer.


[1]

25. A resident construction company concluded a contract to erect a building at a

contracted amount of R2 000 000. During the construction company’s 2017 year of

assessment a deposit of R400 000 was received in terms of the agreement and no

actual expenditure has been incurred during the 2017 year of assessment.

The construction company intends to erect the building during their 2018 year of

assessment and estimates that R1 500 000 would have to be incurred in order to erect

the building. For tax purposes the following would apply in respect of deduction for the

construction company during their 2017 year of assessment:

A No deductions would be allowed as no amount has been actually incurred.

B A deduction of R1 500 000 would be allowed in terms of section 24C.

C A deduction of R400 000 would be allowed in terms of section 24C.

D A deduction of R300 000 would be allowed in terms of section 24C.


[1]

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PART D – VALUE-ADDED TAX (VAT)

26. A company that is registered for VAT distributed trading stock with a cost of R14 000

(including VAT) and an open market value of R17 100 to Mr John as a dividend in

specie. Mr John holds 15% of the shares in the company and is not registered for VAT.

The value of supply for VAT purposes is:

A R0 because it is a supply at no consideration.

B R17 100, even though the company supplied the trading stock to Mr John for

no consideration, he is a connected person in relation to the company and

the value of supply is always market value if it is a transaction with a

connected person.

C R14 000

D R17 100, even though the company supplied the trading stock to Mr John for

no consideration, Mr John is a connected person in relation to the company

and would not have been able to claim a full input VAT credit.

E This is not a supply.

[1]

27. A VAT vendor imported services in the making of taxable supplies.

The vendor will be able to claim input VAT to the following extent:

A To the extent that the vendor will use the services in the making of taxable

supplies.

B To the extent that VAT has been levied by the country from where the service

is imported.

C To no extent. VAT will only be payable on services imported for making non-

taxable supplies.

D To the extent VAT is paid on importation.


[1]

19

28. Which of the following is considered a supply of “services”?

A Corporeal, movable things

B Goodwill

C Electricity

D Fixed property

E Real rights in fixed property

[1]

29. Mr A. Otel, a registered VAT vendor, owns a guest house. He received R228 000 from

overnight guests staying 5 days or less for the VAT period and R50 000 from guests

who all stayed for a full month. This is for one VAT period and includes the relevant

VAT. How much output must he pay over?

A R28 000

B R6 140

C R34 140

D Nil – as it is residential accommodation.

E R31 684

[1]

30. A company that is a VAT vendor that makes 96% taxable supplies gave trading stock

with a cost price of R25 992 (including VAT) to one of its employees. On the date the

trading stock was given to the employee it had an open market value of R34 200.

The output VAT that the vendor will have to pay over to the SARS is:

A R2 800

B R4 200

C R3 129

D R4 788

E R3 639

[1]

TOTAL: 30

20

QUESTION 2: INDIVIDUALS (PERSONAL TAX)

30 Marks

Sipho Dlamini (aged 60) is a South African resident who retired from his employment with

ABC Consulting (Pty) Ltd (ABC) on 31 August 2016. Sipho is married out of community of

property to Kefilwe (aged 58). Sipho and Kefilwe have a son who is 22 years old and married.

ABC is a registered category B VAT vendor and the SARS is satisfied that ABC makes 100%

taxable supplies. The financial year of ABC ends on the last day of February. Where relevant

all amounts given exclude VAT, unless otherwise stated.

Employment with ABC

Sipho’s employment package with ABC included the following for the year of assessment

ended 28 February 2017:

A monthly salary of R35 000 which he received up to the date of his retirement.

A bonus of R50 000 for meeting his performance targets for the 2016 financial year.

The bonus was paid to Sipho on 15 March 2016.

ABC contributed 8% of Sipho’s monthly salary to the company’s pension fund. Sipho

did not make any contributions to the fund in his own capacity. On 1 March 2016 the

disallowed contributions to the fund amounted to R75 000. Sipho’s remuneration

amounted to 314 379 (correctly calculated) for the 2017 year of assessment.

ABC contributed an amount of R4 000 a month to a medical scheme on behalf of

Sipho. Kefilwe is a dependant on the medical scheme, but Sipho’s son is not. After his

retirement, Sipho contributed R4 000 a month to the medical scheme.

Up to the date of his retirement, Sipho received a travel allowance of R2 500 a month

from ABC. Sipho drives a vehicle which had originally cost him R250 000 (including

VAT) on 1 March 2014. Sipho kept a logbook which indicated that he travelled a total

of 22 000 kilometres during the 2017 year of assessment, until his retirement, of which

15 000 kilometres were for business purposes. Sipho did not keep records of actual

costs incurred. Sipho paid all fuel and maintenance costs incurred on the vehicle.

ABC purchased a watch to give to Sipho as an award for service of an unbroken period

of 15 years on 31 August 2016. The watch had cost ABC R7 500 (including VAT) and

had a market value of R8 000 (including VAT) on 31 August 2016.

21

Additional information:

Sipho received a gross lump sum from the ABC pension fund on 31 August 2016 to

the amount of R1 250 000.

Sipho paid for prescription medicine for his wife to the value of R10 000 (including

VAT) during the 2017 year of assessment. These costs were fully recovered from the

medical scheme. Sipho also paid doctor’s fees for his son during the 2017 year of

assessment which amounted to R1 050 (including VAT) in total for the year. These

costs were not recovered from the medical scheme.

Donation of boat

Sipho owns a boat which measures twelve meters in length. He had originally purchased the

boat on 1 March 2015 for an amount of R143 500 (including VAT) and has used it exclusively

for private purposes. Sipho considered donating the boat to his son on

28 February 2017. At this date the market value of the boat amounted to R105 750. Sipho

had not made the donation by 28 February 2017 as he was unsure about the tax

consequences of the donation. He had not made any other donations during the 2017 year

of assessment.

Additional information:

Sipho has not received any other lump sums during his lifetime.

Where relevant you may assume that Sipho would pay any donations tax due to the

SARS.

22

REQUIRED: QUESTION 2 MARKS

(a) Calculate the taxable income of Sipho Dlamini for the year of

assessment ended 28 February 2017.

16

(b) Calculate the medical scheme fees tax credit in terms of section 6A as

well as the additional medical expenses tax credit in terms of section

6B that Sipho Dlamini will be entitled to for the year of assessment

ended 28 February 2017. Provide reasons for amounts that have no

impact on your calculation.

5

(c) Discuss the donations tax implications for Sipho Dlamini if he should

decide to donate his boat to his son on 28 February 2017. In your

answer, you must not discuss by when the donations tax, if any, will be

payable to SARS.

3

(d) Discuss the capital gains tax implications for Sipho Dlamini if he should

decide to donate his boat to his son on 28 February 2017.

6

TOTAL MARKS 30

***END OF PAPER***

23

ANNEXURE A

2017 tax year (1 March 2016 - 28 February 2017)

Taxable income (R) Rates of tax (R)

0 – 188 000 18% of taxable income

188 001 – 293 600 33 840 + 26% of taxable income above 188 000

293 601 – 406 400 61 296* + 31% of taxable income above 293 600



701 301 and above 206 964 + 41% of taxable income above 701 300

Small Business Corporations:

Tax Rates for Small Business Corporations

(Applicable in respect of years of assessment ending on or after 1 April 2016)

Taxable income (R) Rate of tax (R)

0 – 75 000 0%

75 001 – 365 000 7% of taxable income above R75 000

365 001 – 550 000 R20 300 + 21% of taxable income above R365 000

550 001 and above R59 150 + 28% of taxable income above R550 000

Transfer Duty Rates:

In respect of acquisition of property on or after 1 March 2016

VALUE OF PROPERTY

(Rand)

RATE

0 - 750 000 0%

750 001 - 1 250 000 3% on the value above R750 000

1 250 001 - 1 750 000 R15 000 + 6% of the value above R1 250 000

1 750 001 - 2 250 000 R45 000 + 8% of the amount above R1 750 000

2 250 001 - 10 000 000 R85 000 + 11% of the amount above R2 250 000

10 000 001 and above R937 500 + 13% of the value exceeding R10 000 000

24

Travel allowance cost scale: 2017 year of assessment:

Where the value of the vehicle Fixed

Cost

R

Fuel

Cost

c/km

Maintenance

Cost

c/km

Does not exceed R80 000 26 675 82,4 30,8

exceeds R80 000 but does not exceed R160 000 47 644 92,0 38,6






exceeds R560 000 144 784 136,5 79,5

Documents

OCCUPATIONAL CERTIFICATE...employee’s remuneration for employees’ tax purposes with regards to the travel allowance received. (2) For the month of February 2017, an amount of R20