Page 248 - SAIT Compendium 2016 Volume2

IN 14 (3) Income Tax acT: InTeRPReTaTIon noTes IN 16
purposes during a period in that year which is less than the full period of that year, the xed cost must be an amount
which bears to the xed cost the same ratio as the period of use for business purposes bears to 365 days;
(b) where the recipient of the allowance has borne the full cost of the fuel used in the vehicle, the fuel cost; and
(c) where that recipient (including the cost maintenance cost. has borne the full cost of maintaining of repairs, servicing,
lubrication and the vehicle tyres), the maintenance cost.
Where the value of the vehicle –
Fixed cost R
Fuel cost c/km
Maintenance cost c/km
does not exceed R60 000
19 492
73.7
25.7
exceeds R60 000, but does not exceed R120 000
38 726
77.6
29.0
exceeds R120 000, but does not exceed R180 000
52 594
81.5
32.3
exceeds R180 000, but does not exceed R240 000
66 440
89.6
36.9
exceeds R240 000, but does not exceed R300 000
79 185
102.7
45.2
exceeds R300 000, but does not exceed R360 000
91 873
117.1
53.7
exceeds R360 000, but does not exceed R420 000
105 809
119.3
65.2
exceeds R420 000, but does not exceed R480 000
119 683
133.6
68.3
exceeds R480 000
119 683
133.6
68.3
4. Simpli ed method for distances less than 8 000 kilometres
Where—
(a) the provisions of section 8 (1) (b) (iii) are applicable in respect of the recipient of an allowance or advance;
(b) the distance travelled in the vehicle for business purposes during the year of assessment does not exceed 8 000
kilometres, or where more than one vehicle has been used during the year of assessment the total distance travelled
in those vehicles for business purposes does not exceed 8 000 kilometres; and
(c) no other compensation in the form of a further allowance or reimbursement is payable by the employer to that recipient, that rate per kilometre is, at the option of the recipient, equal to 316 cents per kilometre.
5. Effective date
The rate per kilometre determined in terms of this Schedule applies in respect of years of assessment commencing on or after 1 March 2012.
Income Tax Interpretation Note 16
Exemption from Income Tax: Foreign Employment Income
DATE: ACT: SECTION: SUBJECT:
1. Background
27 March 2003
INCOME TAX ACT, 1962 (the Act)
Section 10 (1) (o) (ii)
Exemption from Income Tax: Foreign Employment Income
1.1 South Africa’s change from a source basis of taxation to a residence basis of taxation resulted in the worldwide income of South African residents being subject to income tax in South Africa. The residence basis of taxation adopted in South Africa is based on the so-called ‘residence minus’ system, which means that taxpayers will be taxed on their worldwide income but certain categories of income arising from activities undertaken outside the Republic will be exempt from South African tax.
1.2 The residence basis of taxation is applicable to years of assessment commencing on or after 1 January 2001. Since the year of assessment of a natural person commences on 1 March, natural persons will only be affected by the residence basis of taxation with effect from 1 March 2001.
1.3 In line with international best practice, remuneration derived from services rendered outside South Africa under certain circumstances is exempt from South African tax under section 10 (1) (o) (ii) of the Act.
2. The law
Section 10 (1) (o) (ii) exempts from income tax:
‘any remuneration as de ned in paragraph 1 of the Fourth Schedule (i) ...
(ii) received by or accrued to any person during any year of assessment in respect of services rendered outside the Republic by that person for or on behalf of any employer, if that person was outside the Republic — (aa) for a period or periods exceeding 183 full days in aggregate during any 12 months period commencing
or ending during that year of assessment; and
(bb) for a continuous period exceeding 60 full days during that period of 12 months,
and those services were rendered during that period or periods: Provided that —
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saIT comPendIum oF Tax LegIsLaTIon VoLume 2