Below, please find issue 37 of ENSafrica's tax in brief, a snapshot of the latest tax developments in South Africa.

case law

  • no new case law noted

legislation and draft legislation

  • no new legislation/draft legislation noted

advance tax rulings

  • binding private ruling 330 | distributions of dividends and other amounts from a trust to beneficiaries on termination of their employment.
    • section 1(1) – definition of "gross income"; 8C; and 10(1)(k)(i) of the Income Tax Act, 1962 (the "Act").
    • paragraph 1 of the Fourth Schedule to the Act– definition of "remuneration".
    • this ruling determines the tax consequences of the distributions of dividends and other amounts on the termination of employment of trust beneficiaries.
    • find a copy of the ruling here.

SARS publications

  • Guide on the Determination of Medical Tax Credits (issue 10)
    • this guide provides general guidelines regarding the medical scheme fees tax credit and additional medical expenses tax credit for income tax purposes.
    • find a copy of the guide here.
  • draft interpretation note 16 (issue 3) | exemption from income tax: foreign employment income
    • section 10(1)(o)(ii) of the Income Tax Act, 1962 (the "Act")
    • this note discusses the interpretation and application of the foreign employment remuneration exemption in section 10(1)(o)(ii).
    • due dates for comments: 1 November 2019
    • find a copy of the draft interpretation note here
  • Frequently Asked Questions: Foreign Employment Income Exemption
    • an amendment to section 10(1)(o)(ii) of the Act has been promulgated and will come into effect on 1 March 2020. The Frequently Asked Questions in this document have been compiled on the basis of questions that employees, employers and the public at large have about the implications of the amendment.
    • find a copy of the FAQs here.
  • interpretation note 99 (issue 2) | unclaimed benefits
    • paragraph 4(1) of the Second Schedule to the Act.
    • this note explains the treatment of lump sum benefits classified as unclaimed benefits that accrued to members (both before and from 1 March 2009) for income tax purposes.
    • find a copy of this interpretation note here.

exchange control

  • no new exchange control circulars noted

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