Unit 2

Question 1

Name 3 points of interest from the 2019 Budget Speech?

Answer 1

1. New scrap metal tax introduced
2. Excise items (wine, whiskey, cigarettes, etc.) increased
3. Fuel levy increased

Question 2

What is the definition of ‘Gross Income’ for a resident? (5 parts)

Answer 2

During the YOA 
the total amount, 
in cash or otherwise, 
received or accrued to a resident, 
excluding receipts/accrual of a capital nature.

Question 3

What is the definition of ‘Gross Income’ for a non-resident? (6 parts)

Answer 3

During the YOA
the total amount,
in cash or otherwise,
received or accrued to the resident, OR
to his favour from a deemed source in SA,
excluding receipts/accrual of a capital nature.

Question 4

On what income are residents taxed?

Answer 4

Worldwide income

Question 5

On what income are non-residents taxed?

Answer 5

Income from a source in SA

Question 6

What is withholding tax?

Answer 6

Where an SA resident pays a non-resident, the TP pays tax to SARS on behalf of the non-resident

Question 7

What is the withholding tax on royalties?

Answer 7

15%

Question 8

What is the withholding tax on immovable property?

Answer 8

5% to 10%

Question 9

What is the withholding tax on foreign entertainers/sportspersons?

Answer 9

15%

Question 10

What is the withholding tax on dividends

Answer 10

15%

Question 11

Name 6 points regarding Turnover Tax

Answer 11

1. Relates to micro businesses
2. Turnover < R1 000 000
3. An elective system
4. Found in 6th Schedule of ITA
5. Total turnover is used to calculate tax, not the profit or net income
6. Eliminates detailed record keeping

Question 12

What was the take-away point in the Natal Joint Municipality Pension Fund v Endumeni Municipality case?

Answer 12

Context & language are afforded the same weight