We are pleased to present the April issue of SKP Global Updates – our newsletter that covers employment, payroll, Goods and Services Tax (GST)/Value Added Tax (VAT) and corporate tax related developments globally.
The key highlights of this issue include SARS announce changes to Form ITR14 in South Africa, Updated Employees' social security contributions in Argentina, General Interest Charge (GIC) rates in Australia and Amendments to The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations (S.I. 2018/337) in UK.
Africa
South Africa
SARS Announces Changes to Form ITR14
Recently, the South African Revenue Service (SARS) has announced enhancements to the Income Tax Return (ITR) for companies (Form ITR14).
A new IT10 schedule will be made available for completion by companies with Controlled Foreign Companies (CFCs) requiring companies to disclose all their CFCs, regardless of the number of CFCs. The group of companies that prepare consolidated financial statements with subsidiaries must file the complete group structure with their ITR14. New questions pertaining to Country-by-Country regulations have been added.
Documents are required to be submitted, including financial statements, and/or other substantiating material such as the certificates and documents relating to income and deductions, proof of tax credits claimed, and particulars of assets and liabilities at the time of e-filing of Form ITR14.
Amendments to Unemployment Insurance Fund Contribution
Changes to the Unemployment Insurance Fund (UIF) rules have been introduced in South Africa, effective from 1 March 2018.
As per the changes, 'learners' as well as the employees who intend to repatriate at the end of their working period in South Africa should contribute to the UIF. These individuals and their employers will need to contribute 1% of the remuneration paid by the employer to the employee. The employer, therefore, must remit a total contribution of 2% (1% contributed by the employee and 1% contributed by the employer). The contribution is capped at a maximum of ZAR 148.72 per month for employees earning ZAR 148.72 per month or more.
For more details, click here.
Tax Treatment of Voluntary Retrenchment
The South African Institute of Tax Professionals (SAIT) has received clarification that voluntary severance packages qualify as severance benefits.
The tax directive issued by the South African Revenue Service (SARS) implicitly mentioned that the 'severance benefits - voluntary retrenchment' package as elected by the employee in the IRP3(a) form is currently treated under the normal tax tables, and not the favorable tax table for severance benefits. Now, it will be treated as severance benefits.
For more details, click here.
VAT Rate Increase
The SARS is ready to implement the increase in Value Added Tax (VAT) announced by the Minister of Finance in February. The Minister announced that the VAT rate would increase from 14% to 15% as from 1 April 2018. For more details, click here.
To view the full article please click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.