Newsletters and Case Studies

WYSIGINGS VAN BELASTING OP TRUSTS

Artikel 7 (C) VAN DIE INKOMSTEBELASTINGWET, 58 van 1962 – inwerking treding  vanaf  1 Maart 2017 Op 11 Januarie 2017 het die President die wysigings wetsontwerp onderteken, wat beteken dat hierdie artikel in werking sal tree op enige lenings vanaf 1 Maart 2017. In terme van hierdie nuwe bepaling word lae-rente (of rente vrye) lenings aan trusts geteiken. Hierdie artikel is van toepassing waar ‘n natuurlike persoon (of ‘n maatskappy wat ‘n ‘verbonde persoon’ met betrekking tot daardie natuurlike persoon is) (hierna trust uitlener) kragtens paragraaf (d) (iv) van die definisie van verbonde persone, maak ‘n lae-rente of rente vrye lening aan ‘n trust waarvan daardie natuurlike persoon ‘n ‘verbonde persoon” is. Hierdie artikel bepaal dat die verskil tussen die “amptelike rente koers, tans teen 8%, en die bedrag van die rente wat werklik gehef is op die lening aan die trust geag word ‘n voortdurende skenking deur die trust te wees. Die...
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AMENDMENTS TO TAXATION OF TRUSTS

Article 7 (C) OF THE INCOME TAX ACT, 58 of 1962 - effective from 1 March 2017 As from 1 March 2017, in terms of this new provision, low-interest (or interest-free) loans are targeted to trusts. This article applies where a natural person (or a company that is a "connected person" with respect to that natural person) (hereinafter trust creditor) under paragraph (d) (iv) of the definition of connected persons, make a low-interest or interest-free loan to a trust whose natural person is a "connected person". This article states that the difference between the "official interest rate, currently at 8%, and the amount of interest actually charged on the loan to the trust is deemed to be a continuous donation to the trust. As a result, the lender is taxed on a deemed donation that he makes to the trust which will be calculated as follows. Should the natural person's loan amount to...
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Exchange control circular issued in respect of special voluntary disclosure programme

On 13 July 2016 the Financial Surveillance Department (FinSurv) of the South African Reserve Bank (SARB) issued exchange control circular no. 6/2016 (Circular) regarding details and information required in an application for exchange control relief submitted as part of the joint tax and exchange control Special Voluntary Disclosure Programme (SVDP) which was announced by the Minister of Finance in the 2016 Budget Speech. The SVDP will run for a period of six months from 1 October 2016 to 31 March 2017 (SVDP Period). The SVDP will afford South African residents (individuals, sole proprietorships, partnerships, deceased estates, insolvent estates, South African trusts, close corporations and companies) and former residents the opportunity to disclose their foreign assets held in contravention of the Exchange Control Regulations, 1961 (Regulations) so as to regularise their affairs from an exchange control perspective. According to the Circular, applications for exchange control relief under the SVDP must be made pursuant...
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