IAPA NEWSFLASH

NEW BEE CODES ARE VERY GOOD NEWS FOR SMALLER BUSINESSES

The Department of Trade and Industry (DTI) has published revisions to the codes of good practice on Broad-Based Black Economic Empowerment.

The exempted Micro-Enterprises which previously exempted all business with a turnover of R 5 Million per annum or less has been increased to R 10 Million per annum.

We can assist clients in preparing these exemption certificates that exempt the enterprise from the provisions to BEE.

In terms of the codes, an entity which is recognised as an exempted Micro-Enterprise is deemed to have BEE status of level 4 Contribution with BEE procurement recognition of 100%.

An exempted Micro-Enterprise qualifies for promotion to a BEE status of level 3 contributor, having a BEE procurement recognition of 100% if it is more than 50% owned by black people . An exempted Micro-Enterprise which is more than 50% black owned will qualify for promotion to BEE status of level 2 contributor, having a procurement recognition of 125%.

In addition, an exempted Micro-Enterprise which is more than 100% black owned will qualify for promotion to BEE status of level 1 contributor, having a procurement recognition of 135%. There is therefore a greater emphasis on black ownership than before.


VAT E-FILING CHANGES

At present there is confusion relating to the date of submission of the vat returns. A new notice has been issued by SARS that you can in fact continue to E-file the return until the end of the month as has been the situation until now.


SPECIAL ARRANGEMENT FOR PRIVATE HOMES OWNED BY TRUSTS OR COMPANIES / CLOSE CORPORATIONS

You still have until 31 December 2012 to transfer homes out of a trust, company or close corporation under certain conditions free of transfer duty into you or your spouse’s name. This arrangement can be very beneficial in terms of capital gains tax as primary residences are exempt from the first R2 Million capital gain and owning the house in your own name also results in lower rate of capital gains.



TAKE THE HASSLE OUT OF KEEPING A LOG BOOKs

Every taxpayer who receives either a car allowance or has a company car needs to have a logbook to claim a tax deduction. We have come across a device that will assist in preparing a logbook. The GPS Log Book is a GPS device that plugs directly into the cigarette lighter of your car and records the vehicle’s trip. These can be uploaded at a later date to analyse on Google Maps and produce a SARS compliant tax log book in PDF format.


ADVANTAGES


2012 INDIVIDUAL INCOME TAX RETURN

The deadline for submission of ordinary individual taxpayer’s tax returns is 23 November 2012 and for provisional taxpayers, it is 31 January 2013. If we are dealing with your tax returns please send us your information urgently.

  1. IRP5/IT3 (a) Certificates
  2. Certificates of interest earned, both local and foreign
  3. Certificates for retirement annuity fund contributions
  4. Certificates of medical aid contributions paid and expenses not covered by your medical scheme.
  5. Details of dividends received, both local and foreign.
  6. Rental income and any other income, both local and foreign.
  7. If you received a travel allowance or a company car, details pertaining to your motor vehicle (Log book, date of purchase, purchase price, registration number and odometer reading at the beginning and end of the tax year). We can supply an example of the format of a logbook should you require it.
  8. Details of any investments made or redeemed.
  9. Details of any fixed property purchased or sold.
  10. Any other information pertaining to your tax return.

We would appreciate if you would forward the above, as well as any other relevant documentation required to complete your tax return as soon as possible. Please contact our tax manager: Joyce Blaauw should you have any queries in this regard. Her E-mail address is joyce@iapa.co.za.


NEW SYSTEM FOR PROPERTY TRANSFERS

From October 2012, a new system introduced by the SA Revenue Service (SARS) where the transfer of any property will be subject to delay unless all the parties involved, (including the estate agency), have their tax affairs in order.

A new transfer duty e-filing system is being introduced that requires the transferring attorney to fill in not only the tax numbers of the property buyer and seller, but also that of any estate agency involved. SARS wants to ensure that the tax returns and payments of everyone involved in a property sale are up to date.

SARS has the power to instruct a transferring attorney to first pay any amount of tax outstanding before a property seller can receive the remainder of the proceeds on the sale.


AMENDMENTS OF EXISTING MEMORANDUM AND ARTICLES OF ASSOCIATIONS FOR ALL COMPANIES

In terms of the new companies act it is a requirement to change the current memorandum and articles of association to a “Memorandum of Incorporation” or “MOI”. This amendment needs to be done before 1 May 2013. We can undertake these amendments and would appreciate you contacting us in order to arrange.