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Net Normal Tax due by or to Taxpayer - Coggle Diagram
Net Normal Tax due by or to Taxpayer
Normal Tax Rebate
Personal Rebates
Secondary Rebate >=65
R9 000
Tertiary Rebate >=75
R2 997
Primary Rebate <65
R16 425
Died during the course of year of assessment, rebate based on age WOULD HAVE been if alive on the last day of Feb
Apportioned using days
[NOT MONTHS]
Medical Expenses Tax Credit
6A. Contributions to Medical Schemes
A rebate may be claimed, known as
medical schemes fees tax credit
, by natural persons who make contributions (
of any amount
) to a
medical scheme in South Africa or foreign Registered ones
R
347
per month for
1st dependant
; AND
R
234
per month for
each additional dependant
R
347
per month for
principal member
6B. Out-of-Pocket Medical Expenses
Additonal
medical expense tax credit
available to any TP who
pays qualifying medical expenses
in South Africa or Foreign Registered ones.
Nursing Homes, Hospitals
Pharmacists for prescription medicine
Doctors, Dentists
Necessary expenditure iro
physical impairment
or
disability
of a TP or dependants.
About
Dependant of a TP:
His or Her Spouse
His or Her Child and Child of his/her Spouse
Any Other member of immediate family liable for family care & support
Any other person recognised as dependant rules of scheme
Child:
Between 18 & 21 and unmarried wholly or partially dependant for maintenance not liable for payment of normal tax
Between 21 & 26
(full-time student)
Not older than 18 years and unmarried
Any age but incapacitated for part of year Age child would have been at end of year
Calculation
Younger than 65 No Disability
Excess above 4 x 6A
25% Factor
7.5% Limitation
65 Or Older and Person with Disability
33.3% Factor
NO 7.5% Limitation
Excess above 3 x 6A
Overview of Gross Income and Source Determination for Non-Resident
Section 1: Gross Income for Non-Residents
Gross income for a given year or assessment period is defined as follows: For individuals who are not residents,
It encompasses the entire amount, regardless of form, that has been received by, accrued to, or in favor of such individuals.
The source of this income should be within the borders of the Republic.
This includes all receipts and accruals within the year or assessment period, with the exclusion of those of a capital nature.
Section 2: Receipts by Non-Residents
2.4 Royalties for Use of Intellectual Property (s9(2)(d))
A royalty is considered to have a South African source when it is received or accrued for the use or the right to use intellectual property within the Republic.
2.3 Royalties (s9(2)(c))
A royalty is classified as originating from a South African source when it is incurred by a resident.
Royalties encompass amounts received or accrued related to the use, the right to use, or permission to use intellectual property.
2.2 Interest Income (s9(2)(b))
Interest income originates from a South African source under two conditions:
a) If it is paid by a resident of South Africa.
b) If it is earned on funds that have been invested or utilized within South Africa.
2.1 Dividends Received or Accrued (s9(2)(a))
Dividends pertain to amounts transferred or applied by a resident company on behalf of or for the benefit of an individual in connection with a share in that company.
Notably, the definition of dividends excludes "foreign dividends."
This definition applies specifically to individuals.
2.5 Income from Imparting Knowledge or Information (s9(2)(e))
This applies irrespective of where the knowledge or information is ultimately utilized.
Income resulting from the sharing of scientific, commercial, technical, or industrial knowledge or information falls under a South African source when it is incurred by a resident in South Africa.
2.6 Application of Knowledge or Information (s9(2)(f))
Income derived from imparting knowledge or information is classified as originating from a South African source if the knowledge or information is applied within South Africa.
2.7 Lump Sums, Pensions, or Annuities (s9(2)(i)
In cases where services were rendered both within and outside the Republic, a proportional apportionment is applied by multiplying the amount by the ratio of services rendered in South Africa to the total service period.
Lump sums, pensions, or annuities are attributed to a South African source if the services associated with the received amount were provided within the Republic.
Annuities
characteristics
These payments are repetitive in nature.
The responsibility for these payments lies with a specific individual, often referred to as the investor.
Annuities involve fixed annual payments.
Types of Annuities:
Purchased Annuity:
Purchased annuities are obtained from insurance companies and have dual components - income and capital elements.
Purchased annuities are obtained from insurance companies and have dual components - income and capital elements.
Living Annuity:
Living annuities are linked to pension, provident, preservation, or retirement funds. These funds are responsible for their acquisition.
In case of the member's demise, the annuity can result in a lump sum payment to dependents. Alternatively, if there are no dependents, the lump sum is directed to the deceased's estate.
These annuities are procured by a fund on behalf of a member.