Page 3 - Profmark Tax Guide 2025 Digital
P. 3
INDEX
Budget Highlights � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 2 — Low-cost housing � � � � � � � � � � � � � � � � � � � � � � � � � � � 9
Capital Gains Tax (CGT) � � � � � � � � � � � � � � � � � � � � � � � � � 28 — Interest-free or low-interest loans � � � � � � � � � � � � � � � � 9
— Persons subject to CGT � � � � � � � � � � � � � � � � � � � � � � 28 — Bursaries � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 9
�
— Exclusions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 28 — Medical fund contributions � � � � � � � � � � � � � � � � � � � � � 9
— Calculation and inclusion rates � � � � � � � � � � � � � � � � � 28 Home Office Cost� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11
— Withholding tax – prepayment CGT � � � � � � � � � � � � � � 29 — Employees: � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11
Capital Incentive Allowances � � � � � � � � � � � � � � � � � � � � � 33 — Independent contractors: � � � � � � � � � � � � � � � � � � � � � 11
Carbon Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 44 Interest Rates � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 63
Companies Normal Taxation � � � � � � � � � � � � � � � � � � � � � � 20 IRP 5 Codes � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 53
Comparative Tax Rates� � � � � � � � � � � � � � � � � � � � � � � � � � � 3 Learnership Allowances � � � � � � � � � � � � � � � � � � � � � � � � � 50
Connected person definition for income tax � � � � � � � � � � 31 Natural Person Tax Rates � � � � � � � � � � � � � � � � � � � � � � � � � 4
— Diagram illustrating the rule for determining Notes � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 64
persons who are related within the third degree Pay As You Earn (PAYE) � � � � � � � � � � � � � � � � � � � � � � � � � 15
of consanguinity � � � � � � � � � � � � � � � � � � � � � � � � � � � 32 — General provisions � � � � � � � � � � � � � � � � � � � � � � � � � � 15
�
Crypto Assets � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 44 — The employee is defined as a person who: � � � � � � � � 16
Deductions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 10 — Common law dominant impression test grid � � � � � � � 17
— Contributions to pension, provident and — Personal service providers process flow� � � � � � � � � � � 19
retirement annuity funds� � � � � � � � � � � � � � � � � � � � � � 10 Penalties: Administrative Non-compliance � � � � � � � � � � � 55
— Medical and disability expenses � � � � � � � � � � � � � � � 10 — Fixed amount penalties � � � � � � � � � � � � � � � � � � � � � � 55
Deductions: Sundry � � � � � � � � � � � � � � � � � � � � � � � � � � � � 47 — Percentage based penalties � � � � � � � � � � � � � � � � � � � 56
— Restraint of trade � � � � � � � � � � � � � � � � � � � � � � � � � � � 47 — Understatement penalties � � � � � � � � � � � � � � � � � � � � 56
— Interest � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 47 Provisional Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 14
— Pre-trade expenditure � � � � � � � � � � � � � � � � � � � � � � � � 47 Public Benefit Organisations (PBO)� � � � � � � � � � � � � � � � � 25
— Research and Development � � � � � � � � � � � � � � � � � � � 47 Residence Based Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � 35
Dispute Resolution Process � � � � � � � � � � � � � � � � � � � � � � 58 — Definition of resident � � � � � � � � � � � � � � � � � � � � � � � � 35
Dividends Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 26 — Controlled Foreign Companies (CFC) � � � � � � � � � � � � � 35
Donations Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 43 — Foreign dividends (including deemed dividends) � � � � 36
— Principal exemptions � � � � � � � � � � � � � � � � � � � � � � � � 43 — Foreign tax credits � � � � � � � � � � � � � � � � � � � � � � � � � � 36
�
— Rates � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 43 Retention of Records � � � � � � � � � � � � � � � � � � � � � � � � � � � 59
Employment Tax Incentive � � � � � � � � � � � � � � � � � � � � � � � 48 Ring-fencing of Assessed Losses � � � � � � � � � � � � � � � � � � 45
Estate Duty � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 42 — Checklist (flowchart) for the application of the
— Executor’s remuneration � � � � � � � � � � � � � � � � � � � � � � 42 ring-fencing provisions � � � � � � � � � � � � � � � � � � � � � � � 46
Exchange Control: Non-residents � � � � � � � � � � � � � � � � � � 37 Small Business Corporations � � � � � � � � � � � � � � � � � � � � � 23
— Financial assistance in South Africa � � � � � � � � � � � � � 37 Sundry Taxes � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 48
— Loans from non-resident shareholders to residents � � 37 — Securities Transfer Tax � � � � � � � � � � � � � � � � � � � � � � � 48
— Capital transactions � � � � � � � � � � � � � � � � � � � � � � � � � 38 — Skills Development Levy � � � � � � � � � � � � � � � � � � � � � 48
— Dividend payments to non-residents � � � � � � � � � � � � � 38 — Unemployment Insurance Fund Contributions � � � � � � 48
— Director fee payments to non-residents � � � � � � � � � � � 38 Tax Season Deadlines 2025/2026 � � � � � � � � � � � � � � � � 51
— Ceasing to be a resident� � � � � � � � � � � � � � � � � � � � � � 38 — Income tax returns � � � � � � � � � � � � � � � � � � � � � � � � � � 51
— Physical presence test for a person not ordinarily — Provisional tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 51
resident: � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 39 — Value-added tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � 52
— Average exchange rates for a year of assessment � � � 40 — Payroll tax returns � � � � � � � � � � � � � � � � � � � � � � � � � � 52
Exchange Control: Residents � � � � � � � � � � � � � � � � � � � � � 41 Transfer Duty on Immovable Property � � � � � � � � � � � � � � � 50
— Foreign capital investments � � � � � � � � � � � � � � � � � � � 41 Trusts � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 21
— Single discretionary allowance � � � � � � � � � � � � � � � � � 41 — Tax rates � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 21
— (in addition to foreign capital allowance) � � � � � � � � � 41 — Interest-free and low-interest loans to a trust � � � � � � 21
— Study allowances � � � � � � � � � � � � � � � � � � � � � � � � � � � 41 — Other anti-avoidance provisions � � � � � � � � � � � � � � � � 22
— Emigration limits � � � � � � � � � � � � � � � � � � � � � � � � � � � 41 Turnover Tax for Micro Businesses � � � � � � � � � � � � � � � � � 24
Farming Tax � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 27 Two-Component Retirement Fund System � � � � � � � � � � � � 12
— Valuation of livestock and produce � � � � � � � � � � � � � � 27 — Vesting component � � � � � � � � � � � � � � � � � � � � � � � � � 12
— Capital development expenditure � � � � � � � � � � � � � � � 27 — Savings component � � � � � � � � � � � � � � � � � � � � � � � � � 12
— Special depreciation allowance � � � � � � � � � � � � � � � � 27 — Retirement component � � � � � � � � � � � � � � � � � � � � � � � 12
— Rating formula � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 27 — Retirement Fund Lump Sum Benefits � � � � � � � � � � � � 13
Fringe Benefits � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 6 Value-Added Tax (VAT) � � � � � � � � � � � � � � � � � � � � � � � � � � 30
�
— Travelling allowance for the tax year ending 2025 � � � � 6 — Key features � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 30
— Right of use of motor vehicle � � � � � � � � � � � � � � � � � � � 7 Wear and Tear Allowances � � � � � � � � � � � � � � � � � � � � � � � 61
— Subsistence allowances and advances � � � � � � � � � � � 8 Withholding Tax (other) – Final � � � � � � � � � � � � � � � � � � � � 29
— Residential accommodation � � � � � � � � � � � � � � � � � � � � 8
1