Posted on 17 of June, 2016 by BadenhorstOud	in Property
A purchaser is responsible for payment of transfer cost when acquiring an immovable property, but it should further be established if the transaction is subject to the payment of VAT or transfer duty to SARS.
If the seller is registered for VAT (Vendor) and he sells the property in the course of his business, VAT will be payable to SARS. A vendor is a person who runs a business and whose total taxable earnings per year exceed R1 000 000. He will then have to be registered for VAT. A further stipulation is that the property that is being sold must be related to his business from which he derives an income.
The Offer to Purchase should stipulate whether the purchase price includes or excludes VAT. If the Offer to Purchase makes no mention of the payment of VAT and the seller is a VAT vendor, it is then deemed that VAT is included and the seller will have to pay 14% of the purchase price to SARS. It is the seller&#39;s responsibility to pay the VAT to SARS, except if the contract stipulates otherwise.
The first R750 000 of the value of the property is exempted from transfer duty.
Thereafter transfer duty is levied at 3% of the value of the property between R750 000 and R1 250 000.
Where the value of the property is from R1 250 001 up to R1 750 000, transfer duty will be R15 000 plus 6% on the value of the property above R1 250 000.
If the value of the property falls between R1 750 001 and R2 250 000, transfer duty will be R45 000 plus 8% of the value of the property above R1750 000.
On a property with a value of R2 250 001 and above transfer duty is R85 000 plus 11% on the value of the property above R2 250 000.
Where shares in a company or a member&#39;s interest in a close corporation or rights in a trust are transferred, the transaction will be subject to payment of transfer duty if the legal entity is the owner of a residential property.
Posted on 17 of June, 2016 by BadenhorstOud	in Business
Assessed, Losses, Tax
Posted on 17 of June, 2016 by BadenhorstOud	in Will
Act, Draft, Will
Posted on 17 of June, 2016 by BadenhorstOud	in Tax
Income, South African, Tax Resident
Posted on 11 of May, 2016 by BadenhorstOud	in UIF
1. WHO CAN CLAIM FROM THE UIF?
2. WHO CANNOT CLAIM?
3. WHEN CAN I CLAIM FROM THE UIF?
4. HOW DO I REGISTER FOR UIF BENEFITS?
5. HOW WILL I BE PAID?
6. HOW MUCH WILL I BE PAID?
Workers will receive approximately 36-56% of their average monthly salary for the previous four years (which is capped at a maximum amount though) and on the basis of the higher the salary, the lower the percentage.
Claims, Guide, UIF
Posted on 11 of May, 2016 by BadenhorstOud	in Insurance
Insurance, Short term, Tips
Posted on 11 of May, 2016 by BadenhorstOud	in Boedel
Boedelbelasting word, kragtens die Wet op Boedelbelasting, gehef op die belasbare waarde van die boedel. Die algemene reël is dat indien die belastingbetaler gewoonlik in Suid-Afrika woonagtig is ten tye van sy/haar dood, al die bates (insluitend eiendom geag eiendom te wees), waar ook al geleë, ingesluit sal word in die brutowaarde van die boedel vir die bepaling van die boedelbelasting daarop betaalbaar.
Tans bedra boedelbelasting 20% van die belasbare waarde van die boedel. Buitelanders/nie-inwoners betaal ook boedelbelasting op hulle eiendom in Suid-Afrika.
Om die gevolge van boedelbelasting te minimaliseer, moet ‘n mens die berekening daarvan verstaan. Die volgende is van toepassing in die bepaling van jou aanspreeklikheid:
Watter eiendom ingesluit moet word.
Watter eiendom “geagte eiendom” is.
Toelaatbare aftrekkings: die moontlike aftrekkings wat toegelaat word by die bereddering van die boedel.
Eiendom sluit in alle eiendom of enige reg op eiendom, inbegrepe roerende of onroerende, liggaamlike of onliggaamlike eiendom wat geregistreer is in die oorledene se naam tydens sy/haar dood. Dit sluit ook sekere tipes annuïteite, opsies om grond of aandele te koop, welwillendheid en intellektuele eiendom in.
1. i) Sluit opbrengste in van binnelandse versekeringspolisse (betaalbaar in Suid-Afrika in die Suid-Afrikaanse geldeenheid [ZAR]), uitgeneem op die lewe van die oorledene, ongeag wie die eienaar (begunstigde) is.
ii) Die opbrengs van % , die begunstigde) wat die belastingdoeleindes nie.
iv) Waar ‘n polis deur besigheidsvennote uitgeneem word op mekaar se lewens en daar aan sekere kriteria voldoen word, word die opbrengs van boedelbelasting vrygestel.
2. Voordele betaalbaar deur pensioen- en ander fondse deur of as gevolg van die dood van die oorledene
Betalings deur sodanige fondse (pensioen-, aftree-annuïteit-, voorsorgfondse) bestaan gewoonlik uit twee komponente – ‘n enkelbedrag by die dood en ‘n annuïteit daarna. Die enkelbedragkomponent was vroeër onderhewig aan boedelbelasting, maar vanaf 1 Januarie 2009 word geen bedrag wat ontvang is van so ‘n fonds ingesluit by die boedel van die oorledene vir boedelbelastingdoeleindes nie.
3. Skenkings ten tye van dood
Skenkings waar die begunstigde nie sal baat tot en met die afsterwe van die skenker nie, en waar die skenking slegs realiseer as die skenker te sterwe kom, is nie onderworpe aan skenkingsbelasting nie. Dit moet ingesluit word as ‘n bate in die oorledene se boedel en is onderhewig aan boedelbelasting.
4. Eise kragtens die Wet op Huweliksgoedere (aanwas-eise)
‘n Aanwas-eis wat die boedel van ‘n oorledene teen die langslewende gade het, is eiendom geag eiendom te wees in die oorledene se boedel.
5. Eiendom wat die oorledene by magte was om te vervreem onmiddellik voor sy dood (Artikel 3(3)(d) van die Wet op Boedelbelasting), soos byvoorbeeld om ‘n bate aan ‘n trust te skenk, kan beskou word geagte eiendom te wees.
Sommige van die belangrikste toelaatbare aftrekkings is die volgende:
Die koste van die begrafnis, grafsteen en sterfbeduitgawes.
Skulde wat op datum van afsterwe verskuldig is aan persone wat primêr woonagtig is in Suid-Afrika.
Die mate waarin hierdie skulde vereffen moet word uit eiendom ingesluit in die boedel. Dit sluit in die oorledene se inkomstebelasting betaalbaar (ook kapitaalwinsbelasting) tot en met datum van afsterwe.
Buitelandse bates en regte:
Die algemene reël is dat buitelandse bates en regte van ‘n Suid-Afrikaanse burger, waar ook al geleë, as ‘n bate by sy boedel ingesluit is.
Die waarde daarvan kan egter afgetrek word vir boedelbelastingdoeleindes waar sodanige buitelandse eiendom verkry is voor die oorledene vir die eerste keer gewoonlik woonagtig in Suid-Afrika geword het, of die eiendom bekom is by wyse van skenking of erflating van ‘n nie-burger nadat die begunstigde vir die eerste keer gewoonlik woonagtig in Suid-Afrika geword het (met dien verstande dat die skenker of erflater nie gewoonlik woonagtig in Suid-Afrika was ten tye van die skenking of dood nie). Die bedrag van enige winste of opbrengs van enige sodanige eiendom is ook aftrekbaar.
1. Skulde en laste verskuldig aan nie-inwoners:
Skulde en laste verskuldig aan nie-inwoners is aftrekbaar, maar slegs in die mate wat sodanige skuld die waarde van die oorledene se bates geleë buite Suid-Afrika wat nie in die belasbare boedel ingesluit is nie, oorskry.
2. Bemakings aan sekere openbare weldaadorganisasies:
Waar eiendom bemaak is aan openbare weldaad- of welsynsorganisasies wat vrygestel is van inkomstebelasting, of aan die Staat of enige plaaslike owerheid in Suid-Afrika, sal die waarde van sulke eiendom van boedelbelasting afgetrek kan word.
3. Eiendom bemaak aan langslewende gade [Artikel 4(q)]:
Dit sluit in daardie deel van die waarde van die eiendom wat aan die langslewende gade bemaak is en wat nog nie as ‘n aftrekking toegelaat is nie.
Let daarop dat die opbrengs van ‘n polis betaalbaar aan die langslewende gade, as geagte eiendom in die boedel ingesluit word vir boedelbelastingdoeleindes, maar dat dit aftrekbaar is kragtens Artikel 4(q).
Artikel 4(q)-aftrekkings sal nie toegestaan ​​word waar die eiendom wat geërf is onderhewig is aan ‘n erflatingsprys nie.
Artikel 4(q)-aftrekkings sal nie toegestaan word waar die bemaking is aan ‘n trust wat tot die voordeel van die langslewende gade geskep is, indien die trustee(s) ‘n diskresie het om sodanige eiendom of enige inkomste daaruit aan enige ander persoon buiten die langslewende gade te allokeer nie (‘n diskresionêre trust). Waar die trustee(s) geen diskresie met betrekking tot beide die inkomste en kapitaal van die trust het nie, kan die Artikel 4(q)-aftrekking toegestaan word (‘n gevestigde trust).
Toelaatbare R 3.5 miljoen-afrekking tussen gades
Die Wet maak voorsiening dat die R3.5 miljoen-aftrekking van boedelbelasting van die oorledene verplaas kan word na die langslewende gade sodat die langslewende gade ‘n R7 miljoen-aftrekking kan gebruik by sy/haar dood. Die verplaasbaarheid van die aftrekking is slegs van toepassing as die hele waarde van die boedel van die eerssterwende gade nagelaat is aan die langslewende gade.
Lewensversekering vir boedelbelasting
Boedelbelasting sal normaalweg ook gehef word op hierdie versekeringsopbrengste.
Bron: Moore Stephens se “Estate Planning Guide”.
Hierdie artikel is ŉ algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg van die gebruik van die artikel nie. Kontak altyd ŉ finansiële raadgewer vir spesifieke en gedetailleerde raad. (E&OE)
Begrotings: Is dit die moeite werd?
Posted on 11 of May, 2016 by BadenhorstOud	in Begrotings
Baie klein besighede word deur die eienaar self bestuur, veral aanvanklik wanneer die besigheid op sy voete kom. Aangesien die eienaar intiem betrokke is by die dag tot dag verloop van sake is dit maklik om beheer oor die uitgawes uit te oefen. Soos die besigheid egter groei, mag dit nodig word om werknemers aan te stel om hom te ondersteun in die bestuur van die besigheid.
Dit is onvermydelik dat die dag sal aanbreek wat die eienaar sekere finansiële pligte aan werknemers moet delegeer en hulle moet vertrou met die taak om die besigheid se fondse met verantwoordelikheid te bestuur. Dit is waar ‘n begroting en die begrotingsproses van onskatbare waarde kan wees.
Eenvoudig gestel is ‘n begroting ‘n finansiële plan vir ‘n sekere periode in die toekoms, gebaseer op ‘n kombinasie van die huidige finansiële posisie en ‘n projeksie van verwagte inkomste en uitgawes vir gemelde tydperk. Deur ‘n besigheid se inkomste, uitgawes en finansiële doelwitte in een plan te kombineer, kan ‘n duidelike prentjie gevorm word van waar die besigheid is in finansiële terme en hoe om te werk te gaan om die gestelde doelwitte te bereik.
Wanneer ‘n begroting opgetrek word, is dit nodig dat die eienaar en/of bestuur doelwitte vir die besigheid stel en beplan hoe om dit te finansier. Indien daar meer as een doelwit is, moet die doelwitte geprioritiseer word om vas te stel watter doelwit(te) die fokuspunt sal wees tydens die tydperk van die begroting.
‘n Deeglike begroting behoort te verseker dat die besigheid genoeg kapitaal beskikbaar het wanneer dit benodig word vir groot uitgawes soos om duur toerusting te vervang of nuwe besigheidsinisiatiewe na te volg. Deur die finansiële implikasies van toekomstige groei en uitbreiding in die begroting in te sluit, kan verseker word dat die besigheid kapitaal beskikbaar het wanneer vinnige besluite geneem moet word rakende geleenthede om die besigheid uit te brei.
‘n Begroting kan u help om vooruit te beplan wanneer u geld sal nodig hê en watter bedrag, sodat krisisse weens ‘n tekort aan fondse voorkom kan word. Dit is veral belangrik vir besighede met seisoenale besigheidsiklusse om ‘n veiligheidsnet te hê vir die maande wanneer daar min besigheid is.
‘n Begroting dien as ‘n gids om begrip by werknemers te kweek vir die prioriteite wat die eienaar vir die besigheid stel. ‘n Begroting sal tipies doelwitte vir inkomste en uitgawes vir elke departement of kostesentrum stel. Dit is egter belangrik dat die doelwitte realisties en haalbaar is, en dat elke bestuurder bewus is van wat die eienaar se verwagtings vir die tydperk van die begroting is.
Tydens die opstel van die begroting word elke uitgawe onder die vergrootglas geplaas. Dit is die ideale geleentheid om vas te stel watter uitgawes noodsaaklik is en watter uitgeskakel kan word.
‘n Begroting kan die bestuur van hulp wees in die beheer van uitgawes deur grense vas te stel, sodat spandering wat nie in ooreenkoms is met die toekomstige sakeplanne nie, ingekort kan word. Deur spandering aan onbeplande uitgawes in te kort, kan verseker word dat geld aan die belangrike areas gespandeer word.
Wanneer ‘n begroting opgetrek is, kan die eienaar en bestuur hul vordering en prestasie aan die begroting meet. Indien bevind word dat hulle van die syfers wat begroot is, afgewyk het, kan hulle die gepaste stappe neem of, indien die begroting onrealisties was, sal die begroting moontlik aangepas moet word. ‘n Begroting is ‘n buigsame instrument wat aangepas kan word indien dit nie werk nie of indien die omstandighede waarop die begroting gebaseer is, verander.
Omdat marktoestande, tegnologie en indiensnemingsvereistes voortdurend verander, sal ‘n begroting gereeld hersien moet word ten einde van waarde te wees.
Kennis is mag en om ‘n begroting op te stel, sal aan die eienaar gedetailleerde inligting rakende sy besigheid se huidige posisie, potensiële bestemmings en moontlike finansiering vir die roete vanaf die huidige posisie tot by die eindpunt verskaf. Die vraag wat in die opskrif gestel word, naamlik of begrotings die moeite werd is, kan dus met ‘n luide “Ja!” beantwoord word.
Begrotings, Besighede, Uitgawes
Tax rates announced in the budget
Posted on 25 of April, 2016 by BadenhorstOud	in Tax
On 24 February 2016, Min. Pravin Gordhan tabled National Treasury’s annual budget. While it contained a few surprises (both for what it said and that which it did not), the focus in studying the budget has always been the new tax rates proposed.
Below we set out the new rates that will apply going forward. The two most significant changes are the increase in the capital gains tax inclusion rate, as well as the introduction of yet another transfer duty scale for properties purchased with a value in excess of R10 million.
It is important to note that although not approved by Parliament as yet, the below rates are unlikely to be changed.
Income tax rates for individuals for the 2016/2017 tax year:
Taxable income (R) Rates of tax (R)
0 – 188 000 18% of each R1
188 001 – 293 600 33 840 26% of the amount above 188 000
293 601 – 406 400 61 296 31% of the amount above 293 600
406 401 – 550 100 96 264 36% of the amount above 406 400
550 101 – 701 300 147 996 39% of the amount above 550 100
701 301 and above 206 964 41% of the amount above 701 300
Interest Exemptions from Income Tax (unchanged):
Person younger than 65 R23 800
Person 65 and older R34 500
Medical credits available to be deducted against an income tax liability:
Per month 2017For the taxpayer who paid the medical scheme contributions R286For the first dependant R286For each additional dependant(s) R192
The following rebates will apply for individuals against their tax liability calculated in accordance with the above:
Cumulative Rebates from Income Tax for Individuals:
Primary R13 500
Secondary (65 and older) (unchanged) R7 407
Tertiary (75 and older) (unchanged) R2 466
Income Tax for companies is still levied at 28%, whilst the rate is retained at 41% for trusts.
Small Business Corporations are not taxed at a flat rate of 28%, but according to the below table for tax years ending between 1 April 2016 and 31 March 2017:
0 – 75 000 0%
75 001 – 365 000 7% of the amount above 73 650
365 001 – 550 000 20 395 21% of the amount above 365 000
550 001 and above 59 150 28% of the amount above 550 000
Capital gains tax is calculated by including 40% (previously 33.3%) of an individual’s net capital gains (less R40,000) in their taxable income to be used for calculating their income tax liability (see table above). The inclusion rate for ordinary trusts and companies are increased to 80% (previously set at 66.6%).
The VAT rate has been retained at 14%. The same applies to donations tax and estate duty, both still levied at 20%.
Transfer duty applicable to individuals:
0 – 750 000 0%
750 001 – 1 250 000 3% of the value above 750 000
1 250 001 – 1 750 000 15 000 6% of the value above 1 250 000
1 750 001 – 2 250 000 45 000 8% of the value above 1 750 000
2 250 001 – 10 000 000 85 000 11% of the value above 2 250 000
10 000 001 and above R937,500 13% of the value exceeding R10 000 000
Turnover tax rates:
Taxable turnover (R) Rate of tax (R)
0 – 335 000 0%
335 001 – 500 000 1% of the amount above 335 000
500 001 – 750 000 1650 2% of the amount above 500 000
750 001 and above 6 650 3% of the amount above 750 000
Budget, Capital gains tax, Transfer duty
So what is gap cover all about
Posted on 25 of April, 2016 by BadenhorstOud	in Financial
Something that is a frequent question by consumers is “Why did my medical aid not cover the full cost of my hospitalization?” Thinking they were covered for 100% of all the hospitalization costs. Medical aid can be a minefield for the regular Jane out there, who is just looking for the peace of mind that her medical aid will cover her adequately in all circumstances. All Jane wants to know is, as long as she pays her medical aid contributions, she will be covered in the event of a catastrophe, such as a car accident, as well as all her normal day-to-day expenses at a healthcare provider. She definitely does not want to become bankrupt over additional costs she becomes aware of only once she has been discharged from hospital, costs which she can ill afford, and which are likely to put her back in hospital due to the financial stress she is now placed under.
In South Africa, medical schemes have different options from which you can choose, and these options vary in the benefits offered, and of course also the cost of the contributions. When choosing a medical aid option, you will see that professional services (such as the surgeons or anesthetists) in hospital will be reimbursed at either 100%, 200% or 300% of the scheme rate. Anyone will be forgiven for assuming that being covered at 100% means exactly that – you are fully covered! However, specialists in South Africa are not currently regulated as to what they can charge patients for their services, and could charge in excess of the 100% rate which medical schemes are willing to pay, sometimes as much as 500% of the scheme rate. The end result is that the patient ends up with a shortfall on the specialist’s account, which has to be paid out of his pocket.
To give an example of how significant these costs could be, have a look at this example of the cost of different procedures:
From the above, you see that one can easily have a gap in cover between what is actually charged and what the medical aid is willing to pay for the specialist for the procedure. This is an expense you did not perhaps consider when joining the medical aid, as you mistakenly believed you were fully covered for hospital expenses.
So how does gap cover work?
Gap cover does not form part of your medical scheme membership. In fact, it is not even regulated by the same laws. Medical schemes are regulated by the Council for Medical Schemes, and the Medical Schemes Act, while gap cover falls under the Short-term Insurance Act.
Although there is an on-going debate between government and the different stakeholders as to whether gap cover products are in fact doing the business of a medical scheme, this matter has not yet been resolved, and for now, gap cover products are still available to the public. The value of having gap cover cannot be stressed enough, even for members of medical scheme options that pay at 300% of the scheme rate. Claims experience by the gap cover providers show that specialists often charge above 300% of scheme rates. Although government has published draft regulations to prohibit the marketing of these products, because of the on-going debate, these products are still being marketed and their value is clearly self-evident
While your medical aid will reimburse the hospital or specialist directly when you are hospitalized, because of the regulatory issues, gap cover providers will refund you, the member, directly. It is then your responsibility to reimburse the service provider. The process of claiming is also separate from your medical scheme. Usually, a gap cover claim must be submitted after your medical scheme has paid the service provider. Having a gap policy is also not dependant on a specific medical scheme. You can change medical schemes, but still keep the same Gap cover.
Often downgrading your medical aid option from one that pays a higher scheme rate to one that pays a lower rate and getting gap cover to ensure full payment of specialists is a consideration for consumers, but that may not always be wise as there may be other benefits that you are forgoing on. You should only downgrade your medical scheme option after obtaining advice from your financial advisor, who is accredited to give advice on your specific circumstances.
Financial advisor, Gap cover, Medical aid