Alimony and maintenance – S10(1)(u)
| Alimony and maintenance – S10(1)(u) | After 21/3/62 exempt |
| Purchased annuity – S10A | Capital portion is exempt
Y=A/B X C A – total cash consideration paid B – total expected return C – annuity received
A man aged 39 purchased an annuity for R50000. Annuity pays R3600 per annum. Life expectancy is 30.41
Y = 50000/(3600X30.41) X 3600 = 1644.19 of the 3600 is exempt |
| Authors – S10(1)(m) | Payment for work i.r.o. copyright is exempt if taxed in foreign country. Only applies to first owner of copyright. Not for companies |
| Bursaries and Scholarships S10(1)(q) | 3 requirements to be met
Award bursary to employees relative: 2 provisions before exemptions can apply:
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| Clubs, societies and associations S10(1)(e) | · Levies exempt if it is a
o Body corporate o Shareblock o Section 21 company |
| Dividends S10(1)(k) | SA dividends exempt excl:
· From a portfolio of collective investment schemes · From a portfolio of collective investment schemes in properties · Share buy back dividends |
| Employment – relocation benefits S10(1)(nB) | Expenses in consequences of
Amount exempt
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| Retirement awards – S 10(1)(x) | · Up to R30000 a lifetime exempt
· Retrenchment, prorate bonus, gratuity · Requirements: o Over 55 years or o Infirmity or superannuation o Retrenched or to be retrenched o Company closing down within 5 years |
| Seafarers S10(1)(o)(1) | · Officer or crew member on ship engaged in international transportation of goods and passengers or
· Involved in prospecting or mining of minerals from the seabed Outside SA for more than 183days in a tax year |
| Offshore workers S10(1)(o)(11) | Renders services outside SA
183 days including 60 days continuous in any 12 month period not applicable to government employees |
| Non resident employment S10(1)(p) | Exempt if:
· Received by a non resident · Services rendered outside SA · On behalf of government or local authority · the amount must be taxed in another country |
| Export – state incentive schemes – s 10(1)(zA) | Rebate in respect of export received by approved person is exempt |
| Fimowners- state subsidy S(10)(1)(zG) | After 15/5/89 received /accrued by or to film owners by way of a subsidy from the state under a scheme designed to promote the production of films is exempt |
| Foreign banks S10(1)(j) | Receipts/accruals by banks exempts if:
· bank is non resident · entrusted by the government of a territory outside SA · minister of finance agrees to exempt bank for a particular year |
| Foreign gold dealing companies S10(1)(s) | · Income from realisation of assets consisting of gold bullions in companies are exempt if:
o Assets acquired but company with funds transferred to the Republic from outside republic or funds raised by realisation of similar assets o Treasury given approval that income is exempt Only up to 1/1/2004 |
| Interest S10(1)(i) | Maximum first R1000 exempt for foreign dividends and foreign interest
Balance to interest from SA (under 65 – R10000 in total) (over 65 – R15000 in total) |
| Interest non residents S10(1)(h) – FROM GOVERNMENT | Interest from stock or securities issued by government i.e. SATS, ESKOM, SABS etc is exempt if:
· Natural person – non resident and does no carry on trade in SA, and is outside SA exceeding 183 days per tax year or · Company – non resident – not trading in SA
Exemption not available on interest on or after 1/1/87 if the following: · Natural person, ordinarily resident in neighbouring country · Company managed or controlled in a neighbouring country |
| Interest to non residents S 10(1)(hA) – NORMAL INTEREST | Not exempt if:
· Natural person, is a resident, carries on trade in sa · Non resident in SA more than 183 days · Non resident – interest connected to business carried on by company in RSA |
| Salaries and emolument – S10(1)(c) | · Hold office in RSA as official of a foreign government i.e. ambassadors
· Domestic servants to the above that is non resident
Pensions payable to president or vise president and their surviving spouse are exempt prior to 10/5/94 |
| UIF S10(1)(mB) | · Exempt |
| Uniforms S10(1)(nA) | · Clearly distinguishable – exempt |
| War Pensions and awards for diseases s10(1)(g) | · War pensions, disability pensions, workman’s compensation and occupational injuries and diseases pensions are exempt |
| Foreign pensions | · Social securities overseas |
| Royalties Sec 10(1)(l) | · Non residents that was subjected to with holding tax |
| Pensions, provident, RAF find income | · Certain funds exempt if approved by minister. Other funds 25% tax. |
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