We are pleased to present the December 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 Penalty for Non-submission of Income Tax Returns in South Africa, Canada Pension Plan Contribution Limits Increase, Payroll Tax Amendments in Australia and Belgium announces changes to Income Tax Advance Payments for 2018.
2019 Budget Tax Effects
Following are the proposed tax measures in the budget:
- The highest individual personal income tax rate band would be reduced from 35% to 30%. Nevertheless, the threshold subject to the highest rate would increase from GH¢10,000 to GH¢20,000.
- The band for tax-free individual personal income tax would target income earned by certain minimum wage earners.
- The tax authority could implement higher revenue mobilization.
- Actions would be brought against habitually defaulting taxpayers.
- To shorten the collection of withholding tax for both small-scale mining operators and the tax authorities, the point of collection of the tax would change to the point of export.
- Use of automated tax collection systems would effectively increase the collection of certain indirect taxes.
Penalty for Non- submission of Income Tax Returns
The South African Revenue Service (SARS) has recently stated that penalties would be applicable on a company's failure to submit an income tax return under the provisions of the Tax Administration Act.
The penalties would apply irrespective of whether any tax is due to SARS or not. The amount of penalty applicable would range from ZAR 250 to ZAR 1,600 depending on the amount of the company's taxable income in the previous year. The minimum penalty would apply in the event of a loss.
The penalties will apply from December 2018 if the status of the income tax returns remains un-submitted.
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