Tax Rates and Dates 2010/2011 - …

1 DIRECTOREmil BrinckerNational Practice HeadT +27 (0)11 290 7135E StraussRegional Practice HeadT +27 (0)21 405 6063E NapierT+27 (0)11 290 7137E van RooyenT +27 (0)11 286 1175E MATTERSC liffe Dekker Hofmeyr is a member of DLA Piper Group,an alliance of legal practicesFor advice, please contact a member of our tax teamCAPE TOWN11 Buitengracht StreetCape Town 8001PO Box 695 Cape Town 8000 South AfricaDx 5 Cape TownT +27 (0)21 481 6300F +27 (0)21 481 6388E Sandown Valley CrescentSandownSandton 2196 Private Bag X40 Benmore 2010 South AfricaDx 154 RandburgT +27 (0)11 286 1100F +27 (0)11 286 1264E Protea PlaceSandownSandton 2196 Private Bag X7 Benmore 2010 South AfricaDx 42 JohannesburgT +27 (0)11 290 7000F +27 (0)11 290 7300E floor Protea PlaceProtea RoadClaremontPO Box 23110 Claremont 7735 South AfricaDx 5 Cape TownT +27 (0)21 683 2621F +27 (0)21 671 9740E Dekker Hofmeyr is a member of DLA Piper Group,an alliance of legal practicesEVERYTHING MATTERSRATES AND DATESTAX2010/11 JOHANNESBURGT +27 (0)11 286 1100 T +27 (0)11 290 7000 CAPE TOWNT +27 (0)21 481 6300 T +27 (0)21 683 ASSOCIATER uaan van EedenT +27 (0)11 290 7139E AppollisT +27 (0)21 481 6383E LewisT +27 (0)11 290 7207E offer a full complement of business legal services ineleven core practice areas:CompetitionCorporate and CommercialDispute Resolution:Litigation, Arbitration and MediationEmploymentEnvironmentalFinance, Projects and BankingIntellectual PropertyReal EstateTaxTechnology, Media and TelecommunicationsTrusts and EstatesWe advise in niche sectors and across a rangeof industries including.

2 AviationBlack Economic EmpowermentEnergyInfrastructureInsolvenc yInsuranceMediaMergers and AcquisitionsMining and MineralsOccupational Health & SafetyPensionsPrivate EquityProjects and PPPsPublic SectorRestructuringFor more about us, a complex commercial environment ourtax practice team aims to provide clear andpractical tax solutions. Our team integratestax and legal expertise and market knowledgewith an understanding of our clients businessneeds to deliver a holistic people are committed to building a firmthat values diversity and actively contributeto achieving the objectives of black economicempowerment through transformation withinthe firm and investment in our the quality of our legal advice andbusiness insight, to the efficiency ofour legal teams, we believe that in theway we serve and interact with clients,EVERYTHING Dekker Hofmeyr has more than120 directors and 270 lawyers locatedin Johannesburg and Cape have an exclusive alliance withDLA Piper, a global legal servicesprovider with more than 3,500 lawyersoperating from offices in Asia, Europe,the Middle East and the United States.

3 And an unrivalled network of law firmsacross tax and financial information is essential to managingtax risk in South Africas complex tax and businessenvironment. Tax Rates and Dates provides quick accessto this information, gleaned from various cumbersomestatutes, interpretation notes, treaties, regulations andother publications. The information is provided in aclear and concise format without lengthy information contained in this booklet was accurateat the time of publication, September 2010, but shouldnot be acted upon without professional advice. Copyright 2010 Cliffe Dekker Hofmeyr RatesandDates2010/20112 l Tax Rates and Dates 2010/2011 OUTLINETA XINFORMATIONpg 3 OTHERFINANCIALINFORMATIONpg 34 INCOME TAX &CAPITAL GAINSTA Xpg 4 WITHHOLDINGTAXESpg 30 VATpg 33 OTHERTAXESpg 34 SECURITIESTRANSFERTA Xpg 34 TRANSFERDUTYpg 34E S TAT EDUTYpg 34 DONATIONSTA Xpg 34 INTERESTRATESpg 35 RECORDRETENTIONpg 37 EXCHANGECONTROLpg 40 FINANCIAL DATA3 l Tax Rates and Dates 2010/2011 OUTLINEINCOME TAX &CAPITAL GAINSTA Xpg 4 WITHHOLDINGTAXESpg 30 VATpg 33 OTHERTAXESpg 34 SECURITIESTRANSFER TAXpg 34 TRANSFER DUTYpg 33 ESTATE DUTYpg 34 DONATIONS TAXpg 34 REGISTRATIONpg 33 RATESpg 33 VENDORCATEGORIESpg 33 PAYMENT &VAT RETURNSUBMISSION DATESpg 33 PENALTIES &ADDITIONAL TAXpg 32/33 DOMESTICWITHHOLDINGTAXESpg 30 TAX TREATYWITHHOLDINGRATESpg 30 RATESpg 4 DEDUCTIONS&ALLOWANCESpg 8 PAYMENT &DISPUTERESOLUTIONpg 25 INDIVIDUALS &SPECIAL TRUSTSpg 4 TRUSTSpg 6 PUBLIC BENEFITORGANISATIONS&

4 RECREATIONALCLUBSpg 6 COMPANIESpg 6 HISTORICAL COMPANYTAX RATESpg 7 TAX RETURNSUBMISSION DATESpg 25 PROVISIONAL TAXPAYMENT DATESpg 26 ALTERNATIVE DISPUTERESOLUTIONpg 26 ADMINISTRATIVEPENALTIESpg 28 INDIVIDUALpg 8 BUSINESSESpg 16 MEDICALEXPENSESpg 8 TRAVELALLOWANCESpg 9 KEYALLOWANCESpg 16 TAX INFORMATION4 l Tax Rates and Dates 2010/2011 INCOME TAX AND CAPITAL GAINS TAX RATESINDIVIDUALS AND SPECIAL TRUSTSNORMAL TAXYear of assessmentending 28/02/2011R0 - R140 00018%of taxable incomeR140 001 - R221 000 R25 200 + 25%of taxable income above R140 000R221 001 - R305 000 R45 450 + 30%of taxable income above R221 000R305 001 - R430 000 R70 650 + 35%of taxable income above R305 000R431 001 - R552 000 R114 750 + 38%of taxable income above R431 000 Above R552 001 R160 730 + 40%of taxable income above R552 000 Rebates Tax thresholdPrimaryR10 260R57 000 Age 65 and overR5 675R88 528 TAX - FREE PORTION OF INTEREST INCOME ANDFOREIGN DIVIDENDS2011 All natural persons underR22 300R21 00065 years of age2010 All natural persons R32 000R30 00065 years and olderForeign interest and dividendsR 3 700R 3 500exemption5 l Tax Rates and Dates 2010/2011 INCOME TAX AND CAPITAL GAINS TAX RATESINDIVIDUALS AND SPECIAL TRUSTSTAXATION OF LUMP SUM BENEFITSDoes not exceedR300 000 Exceeds R300 000but not R600 000 Exceeds R600 000but not R900 000 Exceeds R900 000 CAPITAL GAINS TAXI nclusion rate into taxable income25%Effective tax rate on highest marginal rate of 40%10%Annual capital gain or loss exclusionR17 500 Exclusion on deathR120 000 Primary residence exclusionR1 500 000* no liability for primary residence with gross value of less than R 2 000 000 Lump sumTaxable amountRate of taxRetirementor deathDoes not exceedR22 500 Exceeds R22 500but not R600 000 Exceeds R600 000but not R900 000 Exceeds R900 0000%18%R54 000 + 27% ofamount over R600 000R135 000 + 36% ofamount over R600

5 0000%18%R103 950 + 27% ofamount over R600 000R184 950 + 36% ofamount over R900 000 Withdrawalor Resignation6 l Tax Rates and Dates 2010/2011 INCOME TAX AND CAPITAL GAINS TAX RATESTRUSTSNORMAL TAXFlat rate of tax40%CAPITAL GAINS TAXI nclusion rate into taxable income50%Effective rate20%NORMAL TAXI ncome from trading activities28%PUBLIC BENEFIT ORGANISATIONS ANDRECREATIONAL CLUBSCOMPANIESNORMAL TAX20112010 Ordinary companies28%28%South African branch of foreign company33%33%Small business corporations (2011) Taxable income from R0 to R57 000 0% Taxable income from R57 001 to R300 00010% Taxable income exceeding R300 00028%Small business corporations (2010) Taxable income from R0 to R54 200 0% Taxable income from R54 201 to R300 000 10% Taxable income exceeding R300 00028%Long term insurers Individual policyholder fund30%30% Company policyholder fund and corporate fund28%28% Untaxed policyholder fund 0% 0%Personal service providers33%33%Micro business (turn-over under R1m)0%-7% 0%-7%Passive investment holding companies40%*N/ASECONDARY TAX ON COMPANIESOn net amount of dividends declared 10%* Effective date to be determined7 l Tax Rates and Dates 2010/2011 INCOME TAX AND CAPITAL GAINS TAX RATESCAPITAL GAINS TAXI nclusionrateEffectiverateOrdinary companies50%14%South African branch of foreign company50% business corporations50%0%-14%Long term insurers Individual policyholder fund25% Company policyholder fund and corporate fund50%14% Untaxed policyholder fund0%0%Personal service providers50% business (turn-over under R1m)

6 50%0% investment holding companies50%*20%HISTORICAL COMPANY TAX RATESYear**Normal taxSTCB ranchesPersonalServiceProviders2001 30% 35%200230% **34%34%200828%10%33%33%200928%10%33%33% 201028%10%33%33%* Effective date to be determined** Year of assessment ending during period beginning 1 April and ending 31 March the following year** until 30/09/2007 COMPANIESYear of assessment ending 31 March 20118 l Tax Rates and Dates 2010/2011 DEDUCTIONS AND ALLOWANCESINDIVIDUALSD eduction is claimed by the person who paid the expenseTaxpayers 65-years and older: All qualifying medical expensesTaxpayers under 65 years old:Medical aid contributions foreach of first two beneficiariesR670 per monthFor each additional beneficiary R410 per monthThe deduction is reduced by any amount contributed to the medicalaid by the employer on behalf of the taxpayer, which has not beentaxed as a fringe medical expenditureExpenses to the extent that they exceed of the taxpayer s taxable income, calculated before considering retirement lump sum benefits and any medical taxpayers ormembers of his or herhouseholdMEDICAL EXPENSESAll qualifying medical expenses,including those expenses paid inconsequence of the fund contributionsRetirement annuityfund contributionsPENSION AND ANNUITY FUNDSL imited tothe greater ofLimited tothe greater of retirementfunding income; orR1 75015% of non-retirementfunding income; orR3 500*.

7 Or R1 750* less deductible pension fund contributionsPortion of allowance subject to Pay As You Earn80%From 1 March 2010 a taxpayer is required to maintain an accuratelogbook of business distance travelled in order to claim a deemed kilometer method thus no longer applies from1 March l Tax Rates and Dates 2010/2011 DEDUCTIONS AND ALLOWANCESINDIVIDUALSTRAVEL ALLOWANCEV alue of the Vehicle -Fixed Fuel MaintenanceCost (R)Cost (c) Cost (c)Does not exceed R40 00014 R40 000 but not R80 00029 R80 001 but not R120 00039 R120 001 but not R160 00050 R160 001 but not R200 00063 R200 001 but not R240 00076 R240 001 but not R280 00086 R280 001 but not R320 00096 R320 001 but not R360 000106 R360 001 but not R400 000116 R400 000116 travel expense can be determined in one of two ways -(1) The taxpayer can produce accurate data of business and private travel and may deduct the actual cost of business travel, or(2) The taxpayer can produce accurate data of the actual business kilometres travelled.

8 And apply the deemed costs to such actual of deemed costsAlbaniaEuro97 AlgeriaEuro161 AngolaUS $312 Antigua and BarbudaUS $220 ArgentinaUS $98 ArmeniaUS $279 AustriaEuro108 AustraliaAustralian $175 AzerbaijaniUS $145 BahamasUS $191 BahrainB Dinars36 BangladeshUS $79 BarbadosUS $202 BelarusEuro62 BelgiumEuro124 BelizeUS $152 BeninEuro89 BoliviaUS $61 Bosnia-HerzegovinaEuro112 BotswanaPula799 BrazilUS $133 Brunei DarussalamUS $88 BulgariaEuro89 Burkino FasoEuro100 BurundiUS $138 CambodiaUS $90 CameroonEuro100 CanadaCanadian $156 Cape Verde IslandsEuro100 Central African RepublicEuro96 ChadEuro121 ChileUS $105 ChinaUS $15710 l Tax Rates and Dates 2010/2011 DEDUCTIONS AND ALLOWANCESINDIVIDUALSSUBSISTENCE ALLOWANCED aily amount for travel outside the RepublicCountryCurrencyAmount11 l Tax Rates and Dates 2010/2011 DEDUCTIONS AND ALLOWANCESINDIVIDUALSSUBSISTENCE ALLOWANCED aily amount for travel outside the RepublicColombiaUS $94 ComorosEuro85 Cook IslandsNew Zealand $391 Cote DIvoireEuro124 Costa RicaUS $62 CroatiaEuro111 CubaEuro123 CyprusEuro116 Czech RepublicEuro95 Democratic Republic of Congo US $221 DenmarkEuro185 DjiboutiUS $99 Dominican RepublicUS $99 EcuadorUS $100 EgyptUS $90El SalvadorUS $80 Equatorial GuineaEuro130 EritreaUS $106 EstoniaEuro96 EthiopiaUS $65 FijiUS $100 FinlandEuro145 FranceEuro217 GabonEuro228 GambiaEuro105 GeorgiaUS $261 GermanyEuro107 GhanaEuro110 GreeceEuro114 GrenadaUS $151 GuatemalaUS $85 GuineaEuro78 Guinea BissauEuro59 CountryCurrencyAmount12 l Tax Rates and Dates 2010/2011 DEDUCTIONS AND ALLOWANCESINDIVIDUALSSUBSISTENCE ALLOWANCED aily amount for travel outside the RepublicGuyanaUS $118 HaitiUS $109 HondurasUS $67 Hong KongHong Kong $1 000 HungaryEuro94 IcelandISK42 428 IndiaUS $133 IndonesiaUS $86 IranUS $67 IraqUS $125 IrelandEuro240 IsraelUS $122 ItalyEuro120 JamaicaUS $151 JapanYen18 363 JordanUS $128 KazakhstanUS

9 $103 KenyaUS $102 KiribatiAustralian $233 KoreaUS $144 Kuwait (State of)US $152 KyrgyzstanUS $172 LaosUS $100 LatviaUS $140 LebanonUS $120 LesothoRand750 LiberiaUS $97 LibyaUS $111 LithuaniaEuro154 MacauHong Kong $1 196 Macedonia (former Yugoslavia) Euro100 MadagascarEuro107 MadeiraEuro290 CountryCurrencyAmount13 l Tax Rates and Dates 2010/2011 DEDUCTIONS AND ALLOWANCESINDIVIDUALSSUBSISTENCE ALLOWANCED aily amount for travel outside the RepublicMalawiMalawi Kwacha21 699 MalaysiaRinggit308 MaldivesUS $202 MaliEuro180 MaltaEuro132 Marshall IslandsUS $255 MauritaniaEuro178 MauritiusUS $187 MexicoUS $86 MoldovaUS $165 MongoliaUS $69 MontenegroEuro109 MoroccoUS $106 MozambiqueUS $109 Myanmar (Burma)US $74 NamibiaRand660 NauruAustralian $278 NepalUS $64 NetherlandsEuro127 New Zealand New Zealand $160 NicaraguaUS $65 NigerEuro99 NigeriaUS $121 NiueNew Zealand $252 NorwayNOK1700 OmanRials Omani59 PakistanUS $53 PalauUS $252 PanamaUS $108 Papua New GuineaKina285 ParaguayUS $70 PeruUS $111 PhilippinesUS $105 CountryCurrencyAmount14 l Tax Rates and Dates 2010/2011 DEDUCTIONS AND ALLOWANCESINDIVIDUALSSUBSISTENCE ALLOWANCED aily amount for travel outside the RepublicPolandEuro97 PortugalEuro113 QatarQatar Riyals569 Republic of CongoEuro149 ReunionEuro164 RomaniaEuro89 RussiaEuro166 RwandaUS $119 SamoaTala243 Soa TomeEuro86 Saudi ArabiaSaudi Riyals431 SenegalEuro219 SerbiaEuro95 SeychellesEuro275 Sierra LeoneUS $90 SingaporeSingapore $195 SlovakiaEuro81 SloveniaEuro80 Solomon IslandsSol Islands $811 SpainEuro114 Sri LankaUS $74St.

10 Kitts and NevisUS $227St. LuciaUS $215St. Vincent & The GrenadinesUS $187 SudanUS $121 SurinameUS $107 SwazilandRand411 SwedenSwedish Krona1255 SwitzerlandS Franc191 SyriaUS $83 TaiwanNew Taiwan $3 769 TajikstanUS $97 TanzaniaUS $85 CountryCurrencyAmount15 l Tax Rates and Dates 2010/2011 DEDUCTIONS AND ALLOWANCESINDIVIDUALSSUBSISTENCE ALLOWANCED aily amount for travel outside the RepublicThailandThai Baht3 485 TogoEuro78 TongaPaanga174 Trinidad & TobagoUS $213 TunisiaTunisian Dinar118 TurkeyUS $121 TurkmenistanUS $125 TuvaluAustralian $339 UgandaUS $96 UkraineE