1. TAX STATUS OF MUNICIPAL ENTITIES
PricewaterhouseCoopers Business School
Tax-4-TBAs
COMPANIES (2)
May 2011
FOR INTERNAL USE ONLY

2. Contents VAT within Municipal Entities PAYE within Municipal Entities
AG and VAT
SARS developments
The holding of shares brings with it a host of tax implications, both in respect of the way shareholders manage their shareholdings, and in respect of the dealings between companies and their shareholders. The purpose of this training session is to offer an overview of the major tax issues related to the holding of shares. Whilst companies and shareholders can not always be expected to know all the detailed rules related to the tax treatment of share-related transactions and events, it is still important to have an awareness of the types of issues that may arise.
With the proliferation of corporate restructurings and other share-related events, companies and shareholders are becoming increasingly confused about the likely current or future impact of these events. An important point is to have an overall awareness of the issues so that professional advice can be sought appropriately.
The following abbreviations are used in these notes :
DT : Dividend Tax
IN : Interpretation Note (issued by SARS)
ITA : The South African Income Tax Act (Act 58 of 1962)
PN : Practice Note (issued by SARS)
s : section (e.g. “s10 ITA” means section 10 of the Income Tax Act)
SARS : The South African Revenue Service
STC : Secondary Tax on Companies
8th Sch. : The Eighth Schedule to the ITA (The ITA currently has 10 schedules)
PLEASE ALSO NOTE that, in order to avoid getting overwhelmed by all the technical complexities, the language used in the rest of these notes is deliberately simple –and will therefore sometimes be technically imprecise (e.g. will not always capture 100% of each and every proviso, requirement, etc.).
Tax Status of Municipal Enteties
11/23/2018

3. VAT within Municipal Entities
Output VAT
Input VAT
ERP system
Grants received/paid
What to do with assessments
SCM and VAT
Tax Status of Municipal Enteties
11/23/2018

4. PAYE within Municipal Entities
Tax tables
Fringe benefits
Reimbursement of expenses
Allowances
Tax Status of Municipal Enteties
11/23/2018

5. AG and VAT Recon of VAT votes Valid Tax Invoices VAT Vendors
Tax Status of Municipal Enteties
11/23/2018

6. SARS developments Record keeping (S29, S30 and S31)
New penalties (S223)
Voluntary disclosure program
Time limitation
Tax Status of Municipal Enteties
11/23/2018

7. Questions Questions ? Disclaimer:
This handout is provided by PricewaterhouseCoopers Tax Services (Pty) Ltd for information only, and does not constitute the provision of professional advice of any kind. The information provided herein should not be used as a substitute for consultation with professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all the pertinent facts relevant to your particular situation. No responsibility for loss occasioned to any person acting or refraining from action as a result from using the information in the handout can be accepted by PricewaterhouseCoopers Tax Services (Pty) Ltd, PricewaterhouseCoopers Inc or any of the directors, partners, employees, sub-contractors or agents of PricewaterhouseCoopers Tax Services (Pty) Ltd, PricewaterhouseCoopers Inc or any other PwC entity. The information contained in the handout is based on our interpretation of the existing legislation as at March Whilst we will have taken every care in preparing the handout, we cannot accept responsibility for any inaccuracies that may arise.
©2012. PricewaterhouseCoopers (“PwC”), the South African firm. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers in South Africa, which is a member firm of PricewaterhouseCoopers International Limited (PwCIL), each member firm of which is a separate legal entity and does not act as an agent of PwCIL.
Questions