Income tax is levied on all non-capital amounts received by or accrued to the company.
The following types of income will be included:
- Income from the sale of products or rendering of services;
- amounts received from insurance companies;
- profit and losses from business or trade;
- investment income such as interest;
- rental income; and
- capital gains (at the inclusion rate of 66,66%).
The following types of deductions will be allowed :
- expenses incurred in the production of taxable income ;
- pension, provident or retirement annuity fund contributions on behalf of your employees; and
- medical aid contributions as part of compensation paid to employees.
The current tax rate for a normal Company is 28%.
During the year of assessment, companies are required to estimate their taxable income at year end.
Based on this estimated taxable income, two provisional tax payments are made to SARS in advance.
It is essential that you calculate your estimated taxable income accurately since you may be fined with a 10% penalty on an understated amount.
We can assist you in filing accurate and timeous returns in order to avoid possible penalties and interest.
SOURCES :
Cronje & Cronje
Business Partners
