BINDING PRIVATE RULING: BPR 115 (SARS has drawn attention to the fact that policy guidance on the subject of this Ruling is now provided in Interpretation Note 76)
Effective date: 19 March 2012 Affected legislation: Income Tax Act 58 of 1962, Fourth Schedule, para 1, definition of ‘remuneration’, ‘employer’ and ‘employee’ read with para 2(1)(a) of the Fourth Schedule . Subject: The tax treatment of tips and incentive rewards paid to independent sales persons.
Executive summary: This ruling deals with incentive cash rewards to be paid by a company to independent sales persons not in the employ of the company.
BINDING PRIVATE RULING: BPR 294
Effective date: 5 March 2018 Affected legislation: Income Tax Act 58 of 1962, s 44 Subject: An amalgamation transaction between non-resident companies
Executive summary: This ruling determines whether the proposed merger under foreign law constitutes an amalgamation transaction.
BINDING PRIVATE RULING: BPR 295
Effective date: 5 March 2018 Affected legislation: Income Tax Act 58 of 1962, ss 64F(1)(b) and 64FA(1)(a) of the Act and para 75 of the Eighth Schedule. Subject: The distribution in specie of a share to the government.
Executive summary: This ruling determines the dividends tax and capital gains tax consequences of a proposed in specie distribution of a share to the government.
BINDING PRIVATE RULING: BPR 296
Effective date: 8 March 2018 Affected legislation: Income Tax Act 58 of 1962, ss 1(1) – definition of ‘company’, ‘foreign partnership’ and ‘person’ and 24H and para 11(1) of The Eighth Schedule. Subject: Disposal by a German limited partnership of its assets to its sole member.
Executive summary: This ruling determines whether the disposal by a German Kommanditgesellschaft limited partnership of its assets to its sole member and the immediate disposal of the assets by that member to another German Kommanditgesellschaft limited partnership of which that person is also a sole member results in a disposal for that member, a resident, for capital gains tax purposes.
BINDING PRIVATE RULING: BPR 297
Effective date: 8 March 2018 Affected legislation: Income Tax Act 58 of 1962, s 1(1) – definition of ‘dividend’ and ‘REIT’ and ss 25BB and 44 and para 11 of the Eighth Schedule. Subject: Amalgamation transactions involving the conversion of share block companies to private companies.
Executive summary: This ruling determines the tax consequences of an amalgamation transaction involving the conversion of share block companies to private companies in a group of companies controlled by a REIT.
BINDING PRIVATE RULING: BPR 298
Effective date: 23 March 2018 Affected legislation: Income Tax Act 58 of 1962, ss 55 and 58 Subject: Consecutive asset-for-share transactions within 18 months.
Executive summary: This ruling determines the donations tax consequences of the waiver of a debt.
BINDING PRIVATE RULING: BPR 299
Effective date: 23 March 2018 Affected legislation: Income Tax Act 58 of 1962, s 1(1) – definition of ‘dividend’. Subject: Dividend distributions.
Executive summary: This ruling determines the income tax consequences for a company that makes dividend distributions to its holding company.
BINDING PRIVATE RULING: BPR 300
Effective date: 23 March 2018 Affected legislation: Income Tax Act 58 of 1962, s 1(1) – definition of ‘group of companies’, ‘foreign company’, ‘foreign dividend’ and ‘contributed tax capital’, ss 10B(2)(a), 44(5), and 45 and paragraph 1 – definition of “base cost”, 12A, 20(1)(a) and 75 of the Eighth Schedule. Subject: Intra-group transactions and the conversion of debt to equity
Executive summary: This ruling determines the tax consequences of an “intra-group transaction” contemplated in paragraph (b) of the definition in s 45(1) and a conversion of debt to equity.
BINDING PRIVATE RULING: BPR 301
Effective date: 20 April 2018 Affected legislation: Income Tax Act 58 of 1962, ss 1(1) – definitions of ‘gross income’, ‘income’ and ‘securities lending arrangement’, 9(2)(a), para (ff) of the proviso to section 10(1)(k)(i), 11(a) read with s 23(g) and 64F. Subject: The taxation of dividends received by a borrower under a securities lending arrangement.
Executive summary: This ruling determines whether a South African sourced dividend received by a borrower in terms of a securities lending arrangement must be included in the ‘income’ of the applicant and whether any related securities lending expenditure will be deductible.
BINDING PRIVATE RULING: BPR 302
Effective date: 26 April 2018 Affected legislation: Income Tax Act 58 of 1962 (‘the Act’); the Securities Transfer Tax Act 25 of 2007 (the ‘STT Act’); sections 24BA, 40CA, 41(4), 42(1), 42(2)(b), 42(3A), 42(8A), 45(1), 45(2), 45(6), 46(1), 46(7), 47(1)(b), 47(2)(a)(i) of the Act and paras 12(2)(a), 12(2)(b) and 75(1)(a) of the Eighth Schedule to the Act; s 8(1)(a)(i), (iii) and (v) of the STT Act. Subject: Corporate restructuring and unbundling of listed shares.
Executive summary: This ruling determines the tax consequences for the Applicant and the co-applicants of the proposed corporate restructuring and unbundling of listed shares to shareholders.
BINDING PRIVATE RULING: BPR 303
Effective date: 11 June 2018 Affected legislation: Income Tax Act 58 of 1962 (‘the Act’); Securities Transfer Act 25 of 2007 (‘the STT Act’) ss 19 and 24J(2) and paras 12A and 20(1) of the Eighth Schedule to the Act; ss 2 and 6 of the STT Act. Subject: Tax implications of a group restructuring transaction
Executive summary: This ruling determines the tax consequences of a group restructuring transaction which included the discharge of debt by way of set-off, the disposal of shares in a subsidiary to unconnected persons, and the tax implications of a replacement loan.
BINDING PRIVATE RULING: BPR 304
Effective date: 20 June 2018 Affected legislation: Income Tax Act 58 of 1962, ss 1(1) – definitions of ‘contributed tax capital’ and ‘dividend’, ss 8(4)(a), 19, 24J(4A), 36(11) – definition of ‘expenditure’ and paras 12A and 20(1)(a) of the Eighth Schedule to the Act. Subject: Debt reduction and subsequent liquidation of the debtor
Executive summary: This ruling determines the income tax consequences of the settlement of a loan by way of set-off from the outstanding subscription price of a new issue of additional shares and the subsequent liquidation of the issuer
BINDING PRIVATE RULING: BPR 305
Effective date: 20 June 2018 Affected legislation: Income Tax Act 58 of 1962, s 54 and para 2 of the Eighth Schedule. Subject: Registration of units in the name of the beneficial owners.
Executive summary: This ruling determines the consequences of the transfer of units in an equity fund registered in the name of a nominee for the beneficial owner.
BINDING PRIVATE RULING: BPR 306
Effective date: 28 June 2018 Affected legislation: Income Tax Act 58 of 1962, ss 54 and 55 Subject: Donations to a special trust
Executive summary: This ruling determines the donations tax consequence of a cash transfer made to a special trust.
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