What can I claim for on my Tax return?

Tax return season is never the most exciting time. Not only do we have to sort through endless amounts of paperwork (because chances are, some of us forget that deadlines are coming up), but we have to actually do tax returns. However, many people often forget that there are a number of expenses that are incurred throughout the tax year that make you eligible to claim money back from SARS.

 



While these claims don’t necessarily always add up to a significant amount, they can easily help in terms of keeping expenses as low as possible. Some of these refundable expenses are contingent on aspects such as employment, medical aid participation or working hours.

 



For example, you are eligible for a refund on taxes paid on items such as medication and medical supplies purchased through registered pharmacy outlets, taxes paid on medical aid payments (either through your employer or privately), travelling allowances (depending on your agreement with your employer and the stipulations set forth in the tax code) and various other contributions made by you through tax.

 



Casual workers who earn less than a certain amount per year (R57 000) can claim back the amount contributed on their behalf, as any earnings under a certain threshold are non-deductible.

 

Are All Young Drivers Really Bad Motorists?

During the last festive season, as is the case every year around the same time, both provincial and national government begin working toward clamping down on reckless, negligent and drunken driving. A recent interview with an Arrive Alive spokesperson conducted by the New Age newspaper stated that young drivers seem to be at the forefront of the reckless behavior that is exhibited, not only during these times, but year-round.

 

Spokesperson, Tshepo Machaea, cited statistics in an interview with the newspaper, and claimed that   whenever roadblocks are conducted, the majority of offenders would tend to be young drivers either driving under the influence or without a legal drivers’ license. The figures given are, of course troubling, if we factor in the number of annual deaths caused by negligent and reckless driving. The idea of these deaths being caused by inexperienced and reckless youngsters with little to no experience on the road, or even without the right to actually be operating the vehicle should be addressed as quickly as possible.

 

While it is not necessarily a guaranteed fail safe, one way that such negligence could be curbed is by installing some kind of drivers’ education system into the high school phase of education, the time when children are most likely to be preparing to obtain their licenses. This will give schools and governments the ability to monitor driving ability more closely, while educating possible future drivers in safety and responsibility.

 

On the other hand, it does seem a little bit unfair to state outright that by being a young, inexperienced driver that one will be more likely to cause an accident, or to drive under the influence of alcohol or narcotics. While it may seem like the evidence points to this conclusion, the question of whether or not these practices are carried over into later life should be asked. It seems to not be a case of the younger generation being less responsible than the previous, but simply a case of younger drivers being more prominently assumed to be risks in the eyes of authorities.

 

Clamping down on negligent and reckless driving across the board, regardless of the perpetrator’s age and driving experience should provide at least one step closer to the goal of reducing death and accidents on the roads.

Types of Tax in South Africa

 

 

The South African tax system has been subjected to a fair amount of public scrutiny in recent months due to various issues within the political framework of the country. It should also be noted that while the tax laws are applicable to all residents of South Africa, there is still a lot of confusion at a grassroots level about how it works. The following is a brief explanation of the types of tax applicable to South African residents and how they apply to certain persons:

 

Income tax

 

Income tax is imposed on a resident’s worldwide income, at the following rates:

 

Individuals and special trusts are taxed at graduated rates, up to a maximum of 40%, companies and corporations at 29%, and trusts and 40%.

 

Interest received by a non-resident is tax-exempt provided the individual is physically absent from South Africa for at least 183 days and does not carry on business in South Africa during the year of assessment. Interest received by or accrued to any company managed or controlled outside South Africa is tax-exempt unless such company carries on business in South Africa (such as branches of foreign companies). Dividends received by non-residents are tax-exempt. Royalties that are subject to Double Tax Agreements and paid to non-residents are subject to a final withholding tax of 12% (Residents require the approval of the Department of Trade and Industry and Exchange Control for payments of a royalty to a non-resident). Non-residents are taxed on South African source income.

 

Capital gains tax

 

Capital gains tax is imposed on a resident’s worldwide assets at the following maximum effective rates:

 

Individuals and special trusts at a rate of 10%, companies and corporations at 14.5% and trusts at 20%.

 

Generally, a primary residence up to a value of R1 million is excluded. The rate applicable to trusts may be reduced to that applicable to individuals by distributing capital gains to individual beneficiaries. Capital gains tax, triggered on disposal of an asset, applies to a non-resident’s immovable property or assets of a permanent establishment in South Africa.

 

Donations tax

 

Generally, donations tax is levied at a rate of 20% on the value of any property disposed gratuitously by a South African resident or domestic company or domestic corporation. Exemptions include donations by a natural person up to R30,000 per annum, property disposed of under and in pursuance of any trust, donations between spouses not separated, and donation of property or a right in property situated outside South Africa if acquired by the donor before becoming resident in South Africa for the first time, or by inheritance or donation from a non-resident.

 

Other

 

Estate duty is levied on estates at a rate of 20%. Exemptions include the first R1,500,000 of the estate and any bequest to a surviving spouse.

 

Secondary tax on companies and corporations is levied at a rate of 12.5% on dividends declared by a company or corporation.

 

 

By Wesley Geyer

Creative Writer at ATKA SA

Oversteer vs. Understeer

 

A lot of car and racing experts often refer to vehicles as being ‘front or rear-wheel drive’, and while these terms seem quite self-explanatory, there are significant differences between them in terms of steering and control.

 

The basic difference between the two types can be explained as a difference between over and understeering. Understeering is an action seen in front wheel drive vehicles. Because these vehicles rely on the front end to both drive and maneuver the vehicle, it becomes more difficult for the wheels to perform both actions at once. In order to avoid understeering, the driver should take his or her foot off of the accelerator pedal to allow the turning mechanisms to take control around corners and shorten the turning arc.

 

Oversteering, on the other hand, happens in rear wheel drive vehicles. The rear wheels only move the car forward, and the front wheels only have to change the car's direction. Oversteering means that the arc is much tighter as the rear of the car tries to 'come around' to the front. Oversteering can be countered by applying more speed, and by turning the wheel in the opposite direction. Lifting off the accelerator during oversteering will cause a weight transfer to the front of the car, reducing grip at the rear, which is not good in a rear wheel drive car.