Page 41 - Profmark BSA Guide 2025

in which it was purchased. This amount is greater than the depreciation charge on
the asset during that period. Examples of capital incentive allowances include urban
development zone allowances, learnership allowances and wear and tear allowances.
Employee Tax
Where a subsidiary or branch of foreign-owned company hires employees in SA, it
must register as an employer with SARS.
Green Taxes
Examples of Green Taxes in SA include: the carbon dioxide vehicle emissions tax,
plastic bag levy, tyre levy and incandescent light bulb levy. Environmental deductions/
allowances as well as tax allowances for energy efficiency savings also apply. Carbon
Tax was implemented wef 1 June 2019.
Customs Duties
An importer/exporter has to register with SARS to obtain a customs code number.
Goods imported into, or exported from, SA are liable for VAT and customs duty,
subject to the availability of rebates and refunds. Direct exports (where the South
African seller supplies the goods) are subject to VAT at 0% and indirect exports (where
for example the client of a South African seller arranges for the delivery of goods to
the client’s customer in the country to which the goods are exported) are subject to
VAT at 15%.
If goods are imported from one of the countries falling within the Common
Customs Area (Namibia, Botswana, Lesotho and Swaziland) they are exempt
from custom duty but not VAT.

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