Small Business Corporation

The best tax deal at present is the small business corporation. We can assist clients in all aspects utilizing these lower tax rates.


Years ending between 1 April 2012 and 31 March 2013
NET PROFIT TAX PAYABLE
R0-R63 556 NIL
R63557-R350 000 7% of the amount above R63 556
R350 001 and above R20 051 + 28% of amount above R350 00

Years ending between 1 April 2013 and 31 March 2014
NET PROFIT TAX PAYABLE
R0- R67 111 NIL
R67 112- R365 000 7% of the amount above R 67 111
R365 001- R 550 000 R20 852 + 21% of taxable income above R365 00
R550 001 and above R59 702 + 28% of the amount above R550 000

A small business corporation is a close corporation or private company(other than a personal service provider) of which:

THE FOLLOWING ARE THE SAVINGS OF USING A SMALL BUSINESS CORPORATION AS COMPARED WITH A NORMAL COMPANY /CLOSE CORPORATION FOR TAX PURPOSES:


  SMALL BUSINESS
CORPORATION
ORDINARY COMPANY/
CLOSE CORPORATION
Profit of R365.000 per annum
Tax on R67.111 NIL 18791
Tax on R67112-365.000(7)% 20852 83408
R20852 R102 199
SAVINGS R81347
Profit on R550 000 per annum
Tax on R67 111 NIL 18791
Tax on 67 112 -R365 00(7%) 20852 83409
Tax on R365 000 -R550 000 (21%) 38850 51800
59702 154000
SAVINGS R94298

2013 INCOME TAX RETURNS


Should we be doing your tax return for the year ended 28 February 2013 please send us the following, where applicable, as soon as possible:
1. IRP5/IT3 (a) Certificates.
2. Certificates of interest earned, both local and foreign.
3. Certificate for retirement annuity fund contributions.
4. Certificate of medical aid contributions paid and expenses not covered by medical aid 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 of 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 send you 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 it if you would forward the above, as well as any other relevant documentation required to complete the tax return as soon a 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


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IT’S TIME TO REVIEW YOUR ESTATE PLAN


The main aim of conducting an estate planning exercise is to preserve your accumulated wealth during your lifetime and to ensure it`s most effective and beneficial distribution to your beneficiaries on your death. Its ultimate objective is to ensure that on your estate is as low as possible.


ANNUAL DUTIES


CIPC IMPLEMENTS MASSIVE DE-REGISTRATION PROCESS

On the 1st November 2012, CIPC registered all companies and close corporations that were not compliant with their annual returns at that date. In an effort to clear out the system of companies that were not operational or not compliant, it implemented the huge “spring –clean”. Companies that were behind in their in their annual return submissions or whose submissions were not up to date were automatically de-registered. If this has happened to you or one of your companies. We can assist with re-instating your company or close corporation. In order to re-instate your company, the application must comply with certain requirements regardless of what caused the company to be rendered a de-registered status.

All applicants wishing to re-instate their companies or close corporations are required to go through the full restoration process irrespective of the reason for being de-registered.

The requirements include:

1. The advertising reinstatement in the Government Gazette.
2. Obtaining confirmation from the Department of Treasury.
3. Application to CIPC to reinstate.
4. Payment of all outstanding annual duties.


MEMORANDUM OF INCORPORATION


All companies that were formed under the company’s act of 1973 have to lodge a Memorandum of Incorporation (MOI) in terms of the provisions of the 2008 Companies Act, although it is not compulsory to prepare and register a new MOI with the CIPC.

The practical implications of not preparing and registering a new MOI are a follows:
Subsequent to the 30th of April, any provisions of existing shareholder’s agreements or previous Memorandums of Incorporation and Articles of Association which are in conflict with the 2008 Companies Act, will be void.

We can assist in preparing this new Memorandum of Incorporation.


IMPORTANT NOTE


The information contained in this Newsletter is of a general nature, and may in certain circumstances be subjective to misinterpretation. Consequently, we recomment that our advice be sought when acting upon the information contained herin. While every care has been taken in compilation of the Newsletter, no responsibility of any nature whatsoever shall be accepted for any inaccuracies, errors or omissions