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Income Tax Act, 1962 (Act 58 of 1962)

Rates or Normal Tax and Rebates - 2010

 

 

Government Gazette No. 33726

dated 2 November 2010

 

Appendix I to the Taxation Laws Amendment Act, No. 7 of 2010

 

(Section 5)

 

RATES OF NORMAL TAX AND REBATES

 

1) The rate of tax referred to in section 5(1) of this Act to be levied in respect of the taxable income (excluding any retirement fund lump sum benefit or retirement fund lump sum withdrawal benefit) of any natural person, deceased estate, insolvent estate or special trust (other than a public benefit organisation or recreational club referred to in paragraph 5) in respect of any year of assessment commencing on 1 March 2010 is set out in the table below:

 

Taxable income

Rate of tax

Not exceeding R140 000

18 per cent of taxable income

Exceeding R140 000 but not exceeding R221 000

R25 200 plus 25 per cent of amount by which taxable income exceeds R140 000

Exceeding R221 000 but not exceeding R305 000

R45 450 plus 30 per cent of amount by which taxable income exceeds R221 000

Exceeding R305 000 but not exceeding R431 000

R70 650 plus 35 per cent of amount by which taxable income exceeds R305 000

Exceeding R431 000 but not exceeding R552 000

R114 750 plus 38 per cent of amount by which taxable income exceeds R431 000

Exceeds R552 000

R160 730 plus 40 per cent of amount by which taxable income exceeds R552 000

 

2)

 

Description

Reference to Income Tax Act, 1962

Amount

Primary rebate

Section 6(2)(a)

R10 260

Secondary rebate

Section 6(2)(b)

R5 675

 

 

3) The rate of tax referred to in section 5(1) of this Act to be levied in respect of the taxable income of a trust (other than a special trust or a public benefit organization referred to in paragraph 5) in respect of any year of assessment ending on 28 February 2011 is 40 per cent.

 

4) The rate of tax referred to in section 5(1) of this Act to be levied in respect of the taxable income of a company (other than a public benefit organisation or recreational club referred to in paragraph 5 or a small business corporation referred to in paragraph 6) in respect of any year of assessment ending during the period of 12 months ending on 31 March 2011 is, subject to the provisions of paragraph 11, as follows:
a) 28 per cent of the taxable income of any company (excluding taxable income referred to in subparagraphs (b), (c), (d), (e), (f) and (g)) or, in the case of such a company which mines for gold on any gold mine and which is in terms of an option exercised by it exempt from the payment of secondary tax on companies, 35 per cent;
b) in respect of the taxable income derived by any company from mining for gold on any gold mine with the exclusion of so much of the taxable income as the Commissioner of the South African Revenue Service determines to be attributable to the inclusion in the gross income of any amount referred to in paragraph (j) of the definition of ‘‘gross income’’ in section 1 of the Income Tax Act, 1962, but after the set-off of any assessed loss in terms of section 20(1) of that Act, a percentage determined in accordance with the formula:

 

 

or, in the case of a company which is in terms of an option exercised by it exempt from the payment of secondary tax on companies, in accordance with the formula:

 

 

in which formulae y represents such percentage and x the ratio expressed as a percentage which the taxable income so derived (with the said exclusion, but before the set-off of any assessed loss or deduction which is not attributable to the mining for gold from the said mine) bears to the income so derived (with the said exclusion);

c) in respect of the taxable income of any company, the sole or principal business of which in the Republic is, or has been, mining for gold and the determination of the taxable income of which for the period assessed does not result in an assessed loss, which the Commissioner of the South African Revenue Service determines to be attributable to the inclusion in its gross income of any amount referred to in paragraph (j) of the definition of ‘‘gross income’’ in section 1 of the Income Tax Act, 1962, a rate equal to the average rate of normal tax or 28 per cent, whichever is higher: Provided that for the purposes of this subparagraph, the average rate of normal tax shall be determined by dividing the total normal tax (excluding the tax determined in accordance with this subparagraph for the period assessed) paid by the company in respect of its aggregate taxable income from mining for gold on any gold mine for the period from which that company commenced its gold mining operations on that gold mine to the end of the period assessed, by the number of rands contained in the said aggregate taxable income;
d) in respect of the taxable income derived by any company from carrying on long-term insurance business in respect of its—
i) individual policyholder fund, 30 per cent; and
ii) company policyholder fund and corporate fund, 28 per cent;
e) in respect of the taxable income of any personal service provider, as defined in paragraph 1 of the Fourth Schedule to the Income Tax Act, 1962, 33 per cent;
f) in respect of the taxable income (excluding taxable income referred to in subparagraphs (b), (c), (d), (e) and (g)) derived by a company which is not a resident, 33 per cent; and
g) in respect of the taxable income derived by a qualifying company contemplated in section 37H of the Income Tax Act, 1962, subject to the provisions of the said section, zero per cent.

 

5) The rate of tax referred to in section 5(1) of this Act to be levied in respect of the taxable income of any public benefit organisation that has been approved by the Commissioner for the South African Revenue Service in terms of section 30(3) of the Income Tax Act, 1962, or any recreational club that has been approved by the Commissioner of the South African Revenue Service in terms of section 30A(2) of that Act is 28 per cent—
a) in the case of an organisation or club that is a company, in respect of any year of assessment ending during the period of 12 months ending on 31 March 2011; or
b) in the case of an organisation that is a trust, in respect of any year of assessment ending on 28 February 2011.

 

6) The rate of tax referred to in section 5(1) of this Act to be levied in respect of the taxable income of any company which qualifies as a small business corporation as defined in section 12E of the Income Tax Act, 1962, in respect of any year of assessment ending during the period of 12 months ending on 31 March 2011 is, subject to the provisions of paragraph 11, set out in the table below:

 

Taxable income

Rate of tax

Not exceeding R57 000

0 per cent of taxable income

Exceeding R57 000 but not exceeding R300 000

10 per cent of amount by which taxable income exceeds R57 000

Exceeding R300 000

R24 300 plus 28 per cent of amount by which taxable income exceeds R300 000

 

 

7) The rate of tax referred to in section 5(2) of this Act to be levied in respect of the taxable turnover of a person that is a registered micro business as defined in paragraph 1 of the Sixth Schedule to the Income Tax Act, 1962, in respect of any year of assessment ending during the period of 12 months ending on 31 March 2011 is set out in the table below:

 

Taxable turnover

Rate of tax

Not exceeding R100 000

0 per cent of taxable turnover

Exceeding R100 000 but not exceeding R300 000

1 per cent of amount by which taxable turnover exceeds R100 000

Exceeding R300 000 but not exceeding R500 000

R2 000 plus 3 per cent of amount by which taxable turnover exceeds R300 000

Exceeding R500 000 but not exceeding R750 000

R8 000 plus 5 per cent of amount by which taxable turnover exceeds R500 000

Exceeding R750 000

R20 500 plus 7 per cent of amount by which taxable turnover exceeds R750 000

 

8)
a)
i) If a retirement fund lump sum withdrawal benefit accrues to a person in any year of assessment commencing on or after 1 March 2010, the rate of tax referred to in section 5(1) of this Act to be levied on that person in respect of taxable income comprising the aggregate of—
aa) that retirement fund lump sum withdrawal benefit;
bb) retirement fund lump sum withdrawal benefits received by or accrued to that person on or after 1 March 2009 and prior to the accrual of the retirement fund lump sum withdrawal benefit contemplated in subitem (aa); and
cc) retirement fund lump sum benefits received by or accrued to that person on or after 1 October 2007 and prior to the accrual of the retirement fund lump sum withdrawal benefit contemplated in subitem (aa),

is set out in the table below:

 

Taxable income from lump sum benefits

Rate of tax

Not exceeding R22 500

0 per cent of taxable income

Exceeding R22 500 but not exceeding R600 000

18 per cent of taxable income exceeding R22 500

Exceeding R600 000 but not exceeding R900 000

R103 950 plus 27 per cent of taxable income exceeding R600 000

Exceeding R900 000

R184 950 plus 36 per cent of taxable income exceeding R900 000

 

ii) The amount of tax levied in terms of item (i) must be reduced by an amount equal to the tax that would be leviable on the person in terms of that item in respect of taxable income comprising the aggregate of—
aa) retirement fund lump sum withdrawal benefits received by or accrued to that person on or after 1 March 2009 and prior to the accrual of the retirement fund lump sum withdrawal benefit contemplated in item (i)(aa); and
bb) retirement fund lump sum benefits received by or accrued to that person on or after 1 October 2007 and prior to the accrual of the retirement fund lump sum withdrawal benefit contemplated in item (i)(aa).
b)
i) If a retirement fund lump sum benefit accrues to a person in any year of assessment commencing on or after 1 March 2010, the rate of tax referred to in section 5(1) of this Act to be levied on that person in respect of taxable income comprising the aggregate of—
aa) that retirement fund lump sum benefit;
bb) retirement fund lump sum withdrawal benefits received by or accrued to that person on or after 1 March 2009 and prior to the accrual of the retirement fund lump sum benefit contemplated in subitem (aa); and
cc) retirement fund lump sum benefits received by or accrued to that person on or after 1 October 2007 and prior to the accrual of the retirement fund lump sum benefit contemplated in subitem (aa),

is set out in the table below:

 

Taxable income from lump sum benefits

Rate of tax

Not exceeding R300 000

0 per cent of taxable income

Exceeding R300 000 but not exceeding R600 000

R0 plus 18 per cent of taxable income exceeding R300 000

Exceeding R600 000 but not exceeding R900 000

R54 000 plus 27 per cent of taxable income exceeding R600 000

Exceeding R900 000

R135 000 plus 36 per cent of taxable income exceeding R900 000

 

 

ii) The amount of tax levied in terms of item (i) must be reduced by an amount equal to the tax that would be leviable on the person in terms of that item in respect of taxable income comprising the aggregate of—
aa) Retirement fund lump sum withdrawal benefits received by or accrued to that person on or after 1 March 2009 and prior to the accrual of the retirement fund lump sum benefit contemplated in item (i)(aa); and
bb) Retirement fund lump sum benefits received by or accrued to that person on or after 1 October 2007 and prior to the accrual of the retirement fund lump sum benefit contemplated in item (i)(aa).

 

9) The rates of tax set out in paragraphs 1, 3, 4, 5, 6 and 8 are the rates required to be fixed by Parliament in accordance with the provisions of section 5(2) of the Income Tax Act, 1962.

 

10) The rate of tax set out in paragraph 7 is the rate required to be fixed by Parliament in accordance with the provisions of section 48B(1) of the Income Tax Act, 1962.

 

11) For the purposes of this Appendix, income derived from mining for gold includes any income derived from silver, osmiridium, uranium, pyrites or other minerals which may be won in the course of mining for gold and any other income which results directly from mining for gold.

 

 

Appendix II of this document (Amendment of Schedule No. 1 to Customs and Excise Act, 1964) can be found in Government Gazette No. 33726==!Inet("http://www.info.gov.za/view/DownloadFileAction?id=134653")} dated 2 November 2010.