Page 344 - SAIT Compendium 2016 Volume2

IN 18 (3) Income Tax acT: InTeRPReTaTIon noTes (d) Calculation of the section 6quin rebate
Qualifying foreign taxes in respect of South African-source consulting fees (R30 000 × 60%)
Limited to normal tax attributable to taxable income derived from a South African source:
Calculation of the limitation:
Taxable income derived from applicable SA sourced services _____________________________________________ × Normal tax payable
Total taxable income derived from all sources
_R__8_1_0__0_0_ × 27 945 R155 250
= R14 580
Note:
The balance of excess foreign taxes of R3 420 (R18 000 less R14 580) is forfeited.
(e) Calculation of section 6A and 6B rebate
Section 6A tax credit
Medical scheme fees tax credit (R514 per section 6A × 12)
Section 6B tax credit
IN 18 (3)
R 18 000,00
14 580
Additional medical expenses tax credit = 25% of the excess of [{(Medical aid contributions as exceeds 4 × medical scheme fees tax credit) + qualifying medical expenses} as exceeds 7,5% taxable income]
= 25% of the excess of [{(R34 496 – (R6 168 × 4) + R31 548} – (R155 250 × 7.5%)]
= 25% of the excess of [(R9 824 + R31 548) – (R155 250 × 7.5%)]
= 25% of the excess of [R41 372 – R11 643,75] = 25% of the excess of (R29 728,25)
= R7 432,06
(f) Calculation of the normal tax payable after taking into account rebates
Normal tax payable before rebates Less: Primary rebate
Less: Section 6A tax credit
Section 6B tax credit
Final tax payable before section 6quat(1) and 6quin rebate Less:
Section 6quat(1) rebate
Section 6quin rebate
Limited to:
Amount payable (refundable)
Note:
R
13 365 14 580 27 945
1 618,94
R
27 945 (12 726) 15 219 (6 168) (7 432,06) 1 618,94
(1 618,94) Nil
R6 168
The balance of excess foreign taxes of R26 326,06 (R27 945 – R1 618.94) is forfeited and may not be carried forward to the 2016 year of assessment to be used in determining the foreign tax rebate for that year of assessment.
336 saIT comPendIum oF Tax LegIsLaTIon VoLume 2