Belastingaftrekkings vir werknemers wat van die huis af werk

Al hoe meer werkgewers laat gesalarieerde werknemers toe om van die huis af te werk ten einde vermorsing van produktiewe ure terwyl hulle pendel, te vermy. Sodanige werknemers kan ’n tuiskantoor-aftrekking eis (wat toegelaat word ​​onder die afdeling “Ander Aftrekkings” van die persoonlike inkomstebelastingopgawe of ITR12-vorm) indien daar aan sekere streng vereistes voldoen word.

Die aftrekbaarheid van hierdie uitgawes word bepaal deur artikel 11 (veral paragrawe (a), (d) en (e), saamgelees met artikels 23 (b) en 23(m) van die Wet op Inkomstebelasting[1]). Die vereistes van al hierdie bepalings moet nagekom word voordat die betrokke werknemer vir die tuiskantoor-aftrekking kwalifiseer.

In die algemeen moet die werkgewer die werknemer toelaat om van die huis af te werk en moet die werknemer meer as 50% van sy/haar totale werksure van die huis af werk om vir hierdie aftrekking te kwalifiseer. Dit is belangrik om daarop te let dat die werknemer ’n spesifieke area in die huis moet hê wat uitsluitlik vir hierdie doel gebruik word (soos ’n aparte kantoor of studeerkamer) en dat hierdie area spesifiek toegerus moet wees vir die werknemer se ambag (byvoorbeeld ’n werktuigkundige se gereedskap, ’n tekenbord van ’n argitek of toerusting vir ’n dokter se ondersoekkamer). Hierdie vereistes is van toepassing op beide kommissieverdieners (waar meer as 50% van die totale vergoeding kom uit óf die kommissie óf ’n ander veranderlike vorm gebaseer op werkprestasie) en normale gesalarieerde werknemers (met veranderlike betalings wat minder as 50% van sy/haar totale vergoeding uitmaak).

Om die tuiskantoor-aftrekking te bereken moet die werknemer eers die totale vierkante meter oppervlakte van die tuiskantoor in verhouding tot die totale vierkante meter van die huis as ‘n persentasie bereken en hierdie persentasie op die tuiskantoor-uitgawes toepas. Hierdie berekeninge, asook afskrifte van alle relevante fakture, moet deur die werknemer wat hierdie aftrekkings eis bewaar word sou die Suid-Afrikaanse Inkomstediens stawende dokumentasie versoek.

Die tipe uitgawes wat geëis kan word, is onder meer die na verhouding aangepaste aftrekkings gebaseer op huur, die rente van verbandlenings, herstelwerk aan die huis en alle ander uitgawes wat verband hou met die werknemer se huis. Benewens hierdie uitgawes, sluit ander tipiese tuiskantoor-uitgawes telefone, skryfbehoeftes, eiendomsbelasting, en diensgelde, skoonmaak, kantoortoerusting en slytasie, in.

Werknemers wat nie ’n kommissie verdien nie, maar die grootste deel van hul tyd op die pad deurbring om kliënte te besoek en hul pligte hoofsaaklik op hul kliënte se perseel verrig, kwalifiseer gevolglik nie vir die aftrekking van uitgawes vir tuiskantore nie. Alleeneienaars of vryskutwerkers wat van die huis af werk, kan outomaties al die uitgawes vir tuiskantore aftrek en hoef nie aan al die vereistes soos hierbo uiteengesit, te voldoen nie.

Dit is duidelik uit die bogenoemde dat werknemers wat van die huis af werk, deeglik moet oorweeg of hulle aan al die vereistes voldoen ten einde die uitgawes vir tuiskantore te eis.

[1] No.58 van 1962

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 enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

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The different VAT supplies

There are a few instances where VAT is not charged at the standard rate of 15%. In the following newsletter, we distinguished between the different supplies that attract VAT but does not necessarily have the impact of a standard rate supply.

  1. Denied Supplies
  2. The VAT Act provides for certain expenses where input VAT is denied, even if the expense is incurred in the course of conducting an enterprise and if there are no input VAT consequences there will ultimately be no output VAT consequences. The following circumstances are common instances where input VAT will be denied:

    • Acquisitions of a motor vehicle:
    • When a motor vehicle is purchased by a vendor, who is not a motor car dealer or car rental enterprise, the input VAT on the purchase will be considered a denied supply.

      The definition of “motor vehicle” includes all vehicles designed primarily for the purposes of carrying passengers. This definition covers ordinary sedans, hatchbacks, multi-purpose vehicles and double cab bakkies. A single cab bakkie or a bus designed to carry more than 16 persons will qualify for input VAT purposes.  Any repairs and maintenance to vehicles, irrespective of the type of vehicle, will also qualify for the claiming of input VAT, as long as the cost is separately identified and invoiced.

    • Fees and Club Subscriptions:
    • Input tax in terms of subscriptions/membership fees to sport, social, recreational and private clubs are denied supplies. Input VAT may, however, be deducted on subscriptions to magazines and trade journals which are related in a direct manner to the nature of the enterprise carried on by the vendor.

      However, fees for membership of professional bodies and trade organisations paid on behalf of employees are not denied supplies and SARS allows an input VAT to be claimed. Trade unions are exempt in this regard.

    In the case of denied supplies, no VAT may be claimed, and no output VAT needs to be declared, thus these supplies don’t need to be declared on your VAT return.

  3. Zero-Rated Supplies
  4. A zero-rated supply is a taxable supply, but VAT is levied at 0%. Vendors who make zero-rated supplies are still able to deduct input tax on goods or services acquired in making of the zero-rated supplies.

    Zero-rated supplies include certain basic foodstuffs such as brown bread and maize meal, certain services supplied to non-residents, international transport services, municipal property rates and more.

    Although a zero-rate supply is levied at 0%, it is still a taxable supply and should be declared separately on the VAT return.

  5. Deemed Supplies
  6. A vendor may be required to declare an amount of output tax even though they have not actually supplied any goods or services. Deemed supplies will generally attract VAT at either standard rate or zero rate.

    Two common examples of deemed supplies at standard rate are trading stock taken out of the business for private use and certain fringe benefits received provided to employees.

    The deemed supply will be declared on the VAT return under either your standard rate or zero-rate codes.

  7. Notional input VAT 
  8. A VAT vendor may in certain circumstances deduct a notional input VAT credit in respect of secondhand goods acquired from non-vendors where no VAT is actually payable to the supplier.  Second-hand goods exclude animals, certain mineral rights and goods containing gold or consisting solely of gold.

    The following requirements must all be met for a notional input credit to be deductible in respect of secondhand goods:

    • Goods must be previously owned and used (as per the second-hand good definition in section 1 of the Act) and
    • Goods must be used to generate taxable supplies and
    • The seller must be a resident non-vendor and
    • Goods must be located in South Africa and
    • There must be no actual VAT levied on the transaction.

     
    It is important to keep all the documentation for all types of supplies for VAT purposes and to have it available as SARS may require it to confirm VAT transactions.

    This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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Skenkingsbelasting

Is jou kennis genoegsaam oor skenkingsbelasting? Dink jy dalk daaraan om ń familielid finansieel by te staan, of om ń kind te help met ń deposito vir die aankoop van ‘n huis of motorvoertuig? Voor jy die transaksie aangaan is daar ń paar dinge wat jy in gedagte moet hou wanneer dit by ń skenking en skenkingsbelasting kom.

Wat is skenkingsbelasting?

Skenkingsbelasting is belasting betaalbaar teen ń vaste koers van eiendom wegmaking deur skenkings (artikel 54 van 64 van die Wet op Inkomstebelasting, 1962).  Skenkingsbelasting word teen ń vaste koers van 20 % gehef op die waarde van eiendom geskenk.

Deur wie is skenkingsbelasting betaalbaar en wie word vrygestel?

Skenkingsbelasting is van toepassing op enige individu, maatskappy of trust wat as ń inwoner geklassifiseer word, soos omskryf in artikel 1 van die Inkomstebelasting, 1962.

Artikel 56(1) van die inkomstebelastingwet bevat ń lys van vrygestelde skenkings wat die volgende insluit:

  • Skenkings tussen gades;
  • Skenkings kleiner of gelyk aan R100 000 vir ń jaar van aanslag, per individu;
  • Skenkings aan goedgekeurde openbare liefdadigheidsorganisasies;
  • Skenkings deur nie-inwoners;

Wanneer moet skenkingsbelasting betaal word en hoe moet dit betaal word?

  • Skenkingsbelasting moet aan die einde van die maand wat volg op die maand waarin die skenking in werking tree betaal word of sodanige langer tydperk as wat SARS toestaan;
  • Nadat jy ń skenking gemaak het, moet jy ń IT144 vorm (verklaring deur skenker/ontvanger) invul en aan SARS stuur, tesame met die bewys van die skenking;
  • Skenkingsbelasting kan deur eFiling betaal word.

Daar is dus verskeie faktore wat in ag geneem moet word wanneer ń skenking gemaak word. Dit is dus raadsaam om ń belastingkonsultant te raadpleeg, ten einde die belastingimplikasies te bespreek, voordat ń besluit geneem word.

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 enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

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Cryptocurrencies: Everything you need to know

1.1 Background to Bitcoin

Bitcoin, Ether and Litecoin. These are some of the most prominent cryptocurrencies on the market today. Bitcoin is by far the best-known cryptocurrency due to the substantial increase in the price that was experienced in the past couple of years.

Bitcoin is a cryptocurrency – a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities. Bitcoin was developed by an anonymous creator – Satoshi Nakamoto – to enable society to operate with a digital cash system, without the need for third-party intermediaries which are traditionally required for digital monetary transfers.

Should you wish to read the original paper used to introduce bitcoin to the word, please follow this link:  https://bitcoin.org/bitcoin.pdf.

1.2 Tax consequences of cryptocurrencies

For the most part, South Africans have only been able to enter the crypto market locally for a short while, which has drawn the attention of the South African Revenue Service (SARS) to cryptocurrencies.

SARS released a statement on the 6th of April 2018, declaring its stance regarding the taxation of cryptocurrencies. The following is an extract from the statement:

The South African Revenue Service (SARS) will continue to apply normal income tax rules to cryptocurrencies and will expect affected taxpayers to declare cryptocurrency gains or losses as part of their taxable income.”

The statement further indicates that for purposes of the Income Tax Act, SARS does not deem cryptocurrencies to be a currency (due to the fact that wide adoption has not been reached in South Africa and crypto can’t be used on a daily basis to transact), but rather defines cryptocurrencies as assets of an intangible nature.

The definition has the effect that cryptocurrencies will be treated as any other investment for tax purposes. The onus lies on the taxpayer to declare all cryptocurrency-related taxable income in the tax year which the taxpayer received or accrued.

Should a taxpayer thus trade in bitcoin, the trades will be deemed to be income in nature and the profit and loss on the trades should be included in the taxpayer’s taxable income. However, if the taxpayer holds the bitcoin as a long-term investment (the same way some investors hold a share portfolio for long-term investing), the income derived from the disposal of the bitcoin will be deemed to be capital in nature, resulting in capital gains tax needing to be declared on the disposal.

1.3 Conclusion

Whether you are for or against cryptocurrencies, it is evident that cryptocurrencies have formed a part of the modern era and will likely remain relevant. This new form of currency/investment has caused quite a stir at SARS and taxpayers are advised to familiarise themselves with the tax treatment of these currencies to prevent any unexpected tax consequences.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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Section 18A Audit Certificates – Part II

The South African Revenue Service (“SARS”) issued Interpretation Note 112 (“IN112”) on 21 June 2019 to provide guidance on the interpretation and application of the audit certificate requirement as set out in section 18A of the Income Tax Act.[1] This was due to the fact detailed information on this requirement was not included in section 18A, resulting in uncertainties regarding compliance with these provisions.

Section 18A allows for an income tax deduction for donations made to certain approved organisations. These organisations include approved public benefit organisations (“PBOs”), certain specified agencies, programmes, funds, the High Commissioner, offices, entities or organisations[2]  (“approved organisations”) as well as certain government departments.[3]

However, the term “audit certificate” is not defined in section 18A. In terms of the guidance, this constitutes a physical document that provides an opinion on the use of donations for which the relevant entity issued section 18A receipts.

It is recommended that the person from whom an audit certificate is obtained should be independent of the relevant entity and suitably qualified. The IN112 lists examples of such persons for the different types of approved entities. For example, for PBOs, it may be an independent auditor or reviewer[4], while for trusts, it may be a bookkeeper not employed by the trust.

In general, the audit certificate should express an opinion confirming that all the donations for which section 18A certificates were issued were used solely for public benefit activities (“PBAs”) in Part II of the Ninth Schedule to the Income Tax Act.[5] In terms of IN112, additional information that should be included are details of the approved entity, details of the person issuing the audit certificate and details of the work performed. The latter includes, amongst others, a description of the work that formed the basis for the opinion reached and the tests performed. SARS recognises that detailed testing poses practical difficulties but requires an express statement that sufficient and appropriate audit evidence was obtained.

Please note that PBOs are not required to submit the audit certificate with its annual income tax return, though SARS may request it at any point. A government department must, however, submit the audit certificate annually. IN112 furthermore provides guidelines on the retention of audit certificates (generally for a period of 5 years).

The take away is that entities with section 18A status should carefully consider IN112 to ensure that they comply with all the requirements with regards to audit certificates.

[1] No. 58 of 1962

[2] Section 18A(1)(bA)

[3] Section 18A(1)(c)

[4] Appointed under the Companies Act No. 71 of 2008

[5] Section 18A(2B) with reference to section 18A(2A). Please see distribution requirement for PBOs providing funds or assets to other PBOs (referred to as “conduit PBOs”)

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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Spaarfondse voordele

Die drie spaarfondse wat voordeel inhou vir ‘n individu met aftrede, is ‘n pensioenfonds, uittree-annuïteitsfonds, en ‘n voorsorgfonds.

Vanaf 1 Maart 2016 geld die volgende:

  • Bydraes wat deur werkgewers aan bogenoemde aftree-fondse gelewer is word belas in die hande van die werknemer as ‘n byvoordeel;
  • Die volle bydrae van die werkgewer kan deur die werkgewer afgetrek word; en
  • Belastingaftrekkings vir “bydraes gemaak” is beperk tot R350 000; of die grootste van 27.5% van vergoeding of belasbare inkomste (insluitend belasbare kapitaalwins). Dus die maksimum bedrag wat jaarliks afgetrek kan word vir belastingdoeleindes is R350 000.

Bydraes wat die maksimum aftrekking van R 350 000 (beperk tot werklike bydraes gemaak) oorskry, word oorgedra na die volgende jaar en is dan onderhewig aan daardie jaar se perke.

Surplus bydraes aan pensioenfondse en uittree-annuïteitsfondse wat voor 1 Maart 2016 gelewer is het oorgedra, maar nie op bydraes tot voorsorgfondse wat voor 1 Maart 2016 gelewer is nie. Slegs bydraes wat aan voorsorgfondse gelewer is na 1 Maart 2016 en die perk oorskry, is oorgedra.

Bydraes wat nie as aftrekkings gebruik is wanneer ‘n individu ‘n fonds verlaat nie, kan verreken word teen die belastingpligtige se aftreevoordele by aftrede. Dit sal wel eers teen die enkelbedrag en daarna teen die annuïteitsinkomste verreken word.

Werkgewers kan die belastingaftrekking in berekening bring wanneer werknemers se maandelikse inkomstebelasting bereken word. Die maksimum bedrag wat afgetrek word per maand kan nie R29 167 oorskry nie aangesien dit gelykstaande is aan die maksimum bedrag van R350 000 wanneer dit oor 12 maande versprei is.

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 enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

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SARS dispute: What are the reasons?

Generally, disputes with the South African Revenue Service (SARS) are the result of an assessment which has been issued by SARS to a taxpayer. An assessment is the determination of an amount of a tax liability or refund, by way of self-assessment by the taxpayer (such as in the case of VAT) or assessment by SARS (such as in the case of income tax). If taxpayers are not satisfied with an assessment, the Tax Administration Act provides for dispute resolution mechanisms, in terms of which taxpayers can object to the assessment, and subsequently appeal, if objections are not maintained.

Although objection to an assessment is the correct procedure to dispute a tax amount, taxpayers often lodge objections against assessments, without knowing exactly what they are objecting to. This could seriously jeopardise a taxpayer’s case, since taxpayers may not appeal on a ground that constitutes a new objection against a disputed assessment. If a valid ground of objection is therefore not addressed in the objection itself, taxpayers may lose the opportunity to object to a specific ground.

For example: when an assessment is raised by SARS because “expenses are not allowed as a deduction” it could be as a result of, among others, the following:

  • SARS considers the taxpayer not to carry on a trade;
  • SARS considers the expense not to have been incurred in the production of income;
  • SARS considers the expense not to have been actually incurred; or
  • SARS considers the expense to be of a capital nature.

Without having reasons for the assessment, the taxpayer cannot properly formulate its grounds of objection and may, therefore, find itself in a position where the real grounds for the assessment, may not be challenged on appeal.

In terms of Rule 6 of the dispute resolution rules, a taxpayer who is aggrieved by an assessment may request that SARS provide reasons for an assessment. The reasons provided by SARS must enable the taxpayer to formulate its grounds of objection. The reasons for any administrative action must include the reasons for the conclusion reached, and it is not enough to merely state the statutory grounds on which the decision is based or repeat the wording of the legislation. The decision-maker should furthermore set out his understanding of the relevant law.

A request for reasons for an assessment must be made within 30 business days from the date of assessment. Taxpayers (and their practitioners) are therefore encouraged to consider assessments as soon as they are issued by SARS. If there is any doubt as to why the assessment has been issued, a formal request for reasons should be issued without delay.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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What’s new in the world of tax?

On 21 July, National Treasury and the South African Revenue Service (SARS) released the second batch of draft tax amendments for the 2019 legislative cycle, which includes both proposed substantive tax amendments, and administrative changes. This follows the release of the first batch on 10 June 2019, dealing predominantly with addressing abusive arrangements aimed at avoiding the anti-dividend stripping provisions as well as aligning the effective date of tax-neutral transfers between retirement funds with the effective date of annuitisation for provident funds, which is 1 March 2021.

Some of the main items addressed in the second round of draft bills are:

  • Clarifying the interaction between corporate reorganisation rules and other provisions of the Income Tax Act;
  • Refining the tax treatment of long-term insurers; and
  • Refining investment criteria and anti-avoidance measures for the Special Economic Zone regime.

Practitioners are currently scrutinising the bills and getting to grips with the proposed changes. There are, however, two proposed changes of which the public should take immediate notice.

Review of section 72 of the Value-Added Tax Act

The VAT Act contains provisions in section 72 that provide SARS with the discretionary powers to make arrangements in which the provisions of the VAT Act can be applied. This power can be exercised where any vendor or class of vendors conduct their business in such a way that difficulties, anomalies or incongruities arise regarding the application of the VAT Act. The arrangement or decision by the Commissioner as provided under section 72 must have the effect of assisting the vendor to overcome the difficulty, anomaly or incongruity without having the effect of substantially reducing or increasing the taxpayer’s ultimate liability for VAT.

Challenges have arisen regarding the application of the mandatory wording of the other provisions of the VAT Act versus the discretionary wording of the provisions of section 72 of the VAT Act. Because the provisions of the VAT Act are in itself mandatory, to address this anomaly, it is proposed that changes be made in section 72 of the VAT Act to align the provisions of this section with the spirit of the other provisions of the VAT Act.

Reviewing the allowable deduction for venture capital companies (“VCC”)

Government has endeavoured to end the perceived abuse within the VCC tax incentive regime by making changes in the provisions of the incentive aimed at re-emphasising an incentive for true venture capitalists that saw the same value-add in the VCC tax incentive regime as Government and not just as another method of finance, especially of “own projects”. National Treasury indicates that, despite Government’s efforts to introduce anti-avoidance measures, it has come to their attention that some taxpayers are still attempting to undermine the objectives and principles of the VCC tax incentive regime to benefit from excessive tax deductions. Based on administrative data on tax expenditure, the average expenditure per annum incurred by a new VCC shareholder to obtain VCC shares ranged between R1,3 million at its lowest to R2,1 million at its highest over the past four years.

In an effort to balance the benefit and perceived effectiveness of the VCC tax incentive regime whilst still protecting the bottom-line impact of high tax expenditure on the fiscus, it is proposed that changes be made in the VCC tax incentive regime to reintroduce a limitation of the amount to be deducted in respect of taxpayers’ investments in VCC shares. To consider the effect of inflation and to further balance the intended impact of the VCC tax incentive on both small business and the fiscus, it is proposed that the tax deduction in respect of investment in VCC shares should be limited to R2,5 million per annum per VCC shareholder.

National Treasury will accept written comments on the draft bills until the close of business on 23 August 2019. The public is encouraged to engage with their tax practitioners if there are any matters that they wish to bring to the National Treasury’s attention.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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Audit certificates: What you need to know?

The South African Revenue Service (“SARS”) issued Interpretation Note 112 on 21 June 2019 to provide guidance on the interpretation and application of the audit certificate requirement as set out in section 18A of the Income Tax Act.[1]

For background purposes – section 18A provides a taxpayer with an income tax deduction for bona fide donations paid to certain approved organisations such as qualifying public benefit organisations (“PBOs”) and other approved agencies, programmes, funds, the High Commissioner, offices, entities or departments.

The requirements needed to qualify as a PBO are set out in section 30 of the Income Tax Act. Part I of the Ninth Schedule to the Income Tax Act lists a variety of activities that are considered to be public benefit activities (“PBAs”) for purposes of section 30. Only certain of these PBAs will result in the approved organisation qualifying for section 18A status. These activities are listed in Part II of the Ninth Schedule.

In terms of section 18A(2A), these approved organisations may only issue section 18A receipts to the extent that the donation received or accrued during the year of assessment will be used to carry on PBAs as set out in Part II of the Ninth Schedule.[2] For conduit PBOs (i.e. PBOs set up to provide funding or assets to other PBOs), 50% of the donations must be distributed within 12 months and the funds must be used by the second PBO to carry on Part II PBAs.[3]

Approved organisations are allowed to conduct a combination of Part I and Part II activities. In order to ensure that section 18A receipts are issued only in respect of donations that would be, and ultimately are, used for purposes of Part II PBAs, approved organisations are required to obtain and retain an audit certificate.[4] This is seen as a reasonable requirement given the fact that the person making the donation could claim a tax deduction if issued with a section 18A receipt and the approved organisation receiving the donation is exempt from income tax.

To date, section 18A did not include detailed requirements with regards to the audit certificate. Examples include the information that must be contained in the audit certificate and from whom the audit certificate should be obtained in certain instances. As a result, uncertainty exists on how to comply with the audit certificate requirements. Interpretation Note 112 was therefore issued to provide guidance in this regard.

Approved organisations should therefore carefully consider Interpretation Note 112 to ensure that the audit certificate meets all the relevant content requirements, is obtained from the correct body or authority and is timeously submitted to SARS.

[1] No. 58 of 1962

[2] Section 18A(2A)(a)

[3] Section 18A(2A)(b)

[4] Section 18A(2B)

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.  Errors and omissions excepted (E&OE)

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