Where the recipient is by reason of the duties of his or her office or employment obliged to spend a part of a day away from his or her usual place of work or employment, a reimbursement or advance for expenditure actually incurred by the recipient is exempt if the recipient is allowed by his or her principal to incur expenditure on meals and other incidental costs for that part of a day and the amount of the expenditure does not exceed an amount published on the SARS website under Legal Counsel / Secondary Legislation / Income Tax Notices / 2021. Details of these amounts are published on the SARS website under Legal Counsel / Secondary Legislation / Income Tax Notices / 2019. Where the accommodation to which that allowance or advance relates is outside the Republic of South Africa, a specific amount per country is deemed to have been expended. Where the recipient is obliged to spend at least one night away from his or her usual place of residence on business, and the accommodation to which that allowance or advance relates is in the Republic of South Africa, and the allowance or advance is granted to pay for meals and incidental costs or incidental costs only, an amount, published on the SARS website under Legal Counsel / Secondary Legislation / Income Tax Notices / 2021, is deemed to have been expended per day. The negative impact here, however, is a likely increase in the purchase of illicit tobacco and alcohol products, meaning additional revenue losses. Other noteworthy changes include a proposed increase in the UIF contribution ceiling to R17,711.58 (which is open for public comment until 31 March) and excise or “sin” taxes to be increased by 8%, in another blow to the alcohol and tobacco industries following the prohibitions of related products as a result of the Covid-19 lockdown restrictions. At the same time, Government will begin consolidating wealth data for taxpayers sourced through third-party information to further assess the feasibility of a wealth tax. SARS will establish a dedicated unit to investigate the compliance of wealthy individuals, with a focus on those individuals with complex financial arrangements. The Minister also made some interesting announcements regarding the taxation of wealthy persons and the introduction of future wealth taxes. This decision was taken with a hope of further broadening the tax base and increasing South Africa’s attractiveness as an investment destination, as well as to reduce base erosion and profit shifting. Most interesting, and in fulfilment of a promise made in the 2020 Budget Speech, National Treasury has proposed to reduce the corporate tax rate by 1% (one percent), with the new rate of 27% applicable from 1 April 2022. Whilst the aim was not to drum up additional revenue with new tax policies, the Budget nonetheless delivered some interesting insights from a tax perspective. In adopting a focus on economic recovery, following an unprecedented year of job losses, the Minister has for a second consecutive year afforded some relief to taxpayers with an above-inflation increase in the personal income tax brackets and rebates.ĭespite the standing budget deficit, the Minister decided not to increase tax rates and has also withdrawn the decision communicated in the Medium-Term Budget Policy Statement to levy tax increases totalling R40 billion over the next four years. Taxpayers received a welcome message of support from Finance Minister, Tito Mboweni, in delivering his 2021 Budget Speech. APPROVAL FOR INTERNATIONAL TRANSFER (AIT) APPLICATION.Remuneration Structuring / Salary Structuring / Compensation and Benefit Best Practices.Cost To Company Conversion Flexible Benefits.Package Structuring Tool with Flexible Benefits.Hassle-Free And Convenient Customs And Excise Duties.When SARS Unlawfully Help Themselves To Your Bank Balance.General Questions on Double Tax Agreements.General Questions on Financial Emigration.Tax Return – Frequently Asked Questions.Lexis Nexis Expatriate Tax Textbook 2nd Edition.
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