Week 1 - Basics

Question 1

how to get to taxable income?

Answer 1

gross inc > less exemptions > inc > less deductions > add taxable capital gains > taxable income

Question 2

what is gross income?

Answer 2

the total amount in cash or otherwise received by / accrued to in favour of a person during the YOA. excludes rec / acc of a capital nature

Question 3

what is exempt income?

Answer 3

amounts included into gross income but must be exempted

Question 4

what is a deduction?

Answer 4

expenses / losses incurred by the taxpayer for which a deduction is granted

Question 5

natural persons tax rate?

Answer 5

18% to 45%

Question 6

trusts tax rate?

Answer 6

45%

Question 7

SA companies tax rate?

Answer 7

28%

Question 8

what is a rebate?

Answer 8

a reduction in tax payable. updated annually. subtracted from NORMAL TAX not taxable income. only for individuals.

Question 9

how to go from taxable inc to normal tax liability

Answer 9

taxable inc x tax per tables > less rebates > normal tax > less prov pmts or employees tax > normal tax L

Question 10

rebate amounts?

Answer 10

all = R14 958
over 65 = R8 199
over 75 = R2 736

Question 11

what is the YOA for natural persons?

Answer 11

1 March to 28 Feb

Question 12

what is the YOA for juristic persons?

Answer 12

their financial year