Study notes: Honours:

Income Tax

All honours study notes

Source for non-residents

Physical presence test

Can only be calculated if the person was not a ordinary resident in any part of the year of assessment, ie: • The person did not emigrate or immigrate during the year of assessment.

Nie-inwoners en Bron

Fisiese teenwoordigheidstoets

Kan slegs bereken word indien die persoon nie ter enige tyd gedurende die jaar aanslag gewoonlik woonagtig is nie. D.w.s

  • Die persoon het nie gedurende die jaar van aanslag geemigreer of geimmigreer nie.

Exam technique

When calculating the normal tax payable by an individual who earns an annual salary, always remember to include the gross amount salary in the gross income of the individual and NOT the net amount (after PAYE was withheld) of the salary.

From Portable Study Buddy – Wessel UP

Fringe benefits, VAT and capital allowances – honours

If a company gives the right of use of a motor to an employee the following will ALWAYS be applicable:

1. For the employee: The employee receives a fringe benefit in terms of the 7th schedule. The amount has to be determined in accordance with the 7th schedule and included in the taxable income of the employee.

Non-profit Organisations: Income Tax -Public Benefit Organisation

A Public Benefit Organisation does not automatically qualify for preferential income tax treatment. They must apply using the relevant forms (EI1) to get preferential income tax treatment.