South Africa

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

29%

   
Tax rate on long-term capital gains 14.5%
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies 12.5%
   
Tax rate on branches 34%




Income tax

Fiscal year The tax year begins on January the 1st and ends on December the 31sh.
   
Income tax rate The South African tax system is based on residency. Income tax is charged at progressive rates according to declared total amounts and the tax rate is from 18% to 40% depending of the income amount.
   



VAT rates

Standard rates 14%
   
Reduced rates Exemptions include exports, international transport, some basic foodstuffs, some farming goods, certain fuels, some financial services, residential rents, domestic passenger transport and educational services.



Other important taxes


Name of tax
Rate
Capital gains tax, donations tax, estate duty, excise duty, import duties, marketable securities tax, stamp duty, tax on retirement funds, transfer duty.  
 


 

Accounting

Introduction
Accounting regulations are very strict in South Africa.


General accounting principles
The general principles of the structure of accounts published in South Africa are in agreement with the international accounting agreements.

Obligations and publications
All the companies must hold their accounts in English, these recordings must include: capital and obligations of the company, the fixed assets register, the incomes, the annual stock report, a summary of the goods sold and bought.
Moreover, they have to produce their annual financial statement. It must contain the balance sheet and the annexes, a report on the incomes with annexes, a report made authentified by the director, a report authentified by the executives and a profit and loss account.

Certification and auditing
An independent auditor must control the annual financial statements of companies with private or public capital.

Professionals and representative organizations
Most of the big audit and accounting multinationals are present in South Africa. The accountants chartered by the Public Accountants and Auditors Board.



Useful links
The Department of Finance
The South African Revenue Service

Last modified in 2007 - ongoing update
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