UAE Corporate Tax - Public Consultation Document
24 May 2022
The UAE Ministry of Finance (MoF) on 31st January 2022, announced the introduction of the Federal Corporate Tax (CT) on business profits effective for financial...
|GREAT BUSINESS QUOTES|
• “Don’t blow off another`s candle for it wont make yours shine brighter” Jaachynma N.E.Agu, The Prince and the Pauper
• “You have to work on the business first before it works for you” Idowu Koyenikan, Wealth for All :Living a Life of Success at the Edge of your Ability.
• “Money is always eager and ready to work for anyone who is ready to employ it” Idowu Koyenikan, Wealth for All :Living a Life of Success at the Edge of your Ability.
• “ If there is one trait that your brand must speak of, it is trust: Idowu Koyenikan, Wealth for All :Living a Life of Success at the Edge of your Ability
• “Don’t set your goals by what other people deem important.” Jaachynma N.E.Agu, The Prince and the Pauper
• “This defines entrepreneur and entrepreneurship - the entrepreneur always searches for change, responds to it and exploits it as an opportunity”. Peter F. Drucker, Innovation and Entrepreneurship; Practice and Principles.
• “Opportunities will come and go, but if you do nothing about them, so will you” Richie Norton, The Power of Starting Something Stupid: How to Crush Fear, make Dreams Happen, and Live without Regret
• “Success in life is not for those who run fast, but for those who keep running and always on the move” Bangambiki Habyarimana, Pearls Of Eternity
• “The true entrepreneur is a doer, not a dreamer.” Nolan Bushnell
• “Do not be embarrassed by your failures, learn from them and start again”. Richard Branson SARS SENDING CORRESPONDENCE TO TAXPAYERS:
We have noticed a very concerning tendency of SARS sending correspondence directly to taxpayers, instead of to the tax practitioners. This is of concern because sometimes such correspondence may require urgent attention (as in the case of audits or where SARS are requesting certain documentation) and if left unattended, may have serious consequences for taxpayers. As a result, we are appealing to you, if you receive any correspondence from SARS – normally by email – to immediately forward it on to our office for perusal. ADDITIONAL PAYE DEDUCTION ON PENSION/ANNUITY INCOME: With effect from 1 March 2022, additional PAYE may be deducted from pension/annuity income for the following reason: Where a taxpayer is in receipt of more than one source of income, the different sources of income are combined at the end of the tax year to determine the correct tax liability. By adding all the sources of income, they are often placed in a higher tax bracket, which creates a tax shortfall on assessment for that particular tax year. Although taxpayers may instruct the administrators of their pension/annuity funds to deduct additional PAYE to avoid the above situation, very few do so. SARS have thus introduced amended legislation whereby they may, based on the last previous assessment, determine the correct tax liability and will accordingly instruct the pension/annuity administrator to deduct an amended amount of PAYE. 2022 PERSONAL INCOME TAX RETURN
To enable us to complete your above income tax return for the year ended 28 February 2022, could you please send us the following, where applicable, as soon as possible:1. IRP5/IT3(a) Certificates.
2. Certificates of interest earned, both local and foreign. Please ensure that all details of interest on investments are obtained and provided to us. Failure to do this could potentially result in penalties being imposed for non-declaration of income.
3. Certificates for retirement annuity fund contributions paid.
4. Certificate of medical aid contributions paid and a schedule of expenses not covered by medical aid scheme, as well as copies of these invoices and proof of payment thereof.
5. Details of dividends received, both local and foreign.
6. Rental income and any other income, both local and foreign. Please also include details of expenditure incurred in the production of rental income. Please include a certificate of bond interest paid, levy statements and rates and taxes if claiming this expenditure. SARS will not allow this expenditure without these documents.
7. If you received a travel allowance or a company car or claim travel expenses against business income, details pertaining to your motor vehicle ( a comprehensive log book of all business and private mileage, vehicle purchase date, purchase price, registration number, odometer reading at the beginning and end of the tax year, and purpose of all business trips).
8. Details of any investments made or redeemed.
9. Details of any fixed property purchased or sold.
10. Any other information pertaining to your tax return.
11. Should you receive business income, SARS will require a statement of assets and liabilities. We will request this from you if needed. We would also like to point out that the Tax Administration Act that came into effect on 1 October 2012 has fixed penalties for non disclosure of taxable income. It is therefore essential that we are given all information pertaining to your tax return please. The Tax Administration Act also provides for penalties for late submission of tax returns, hence our appeal to you to please supply your tax documentation timeously. We would appreciate it if you can forward the above, as well as any other relevant documentation required to complete your tax return as soon as possible to email address email@example.com. It would be appreciated if you could gather all the above documentation and send it in one batch, if possible.
Automatic exchange of information between various revenue authorities worldwide is now a reality. As a result, the South African Revenue Service is able to obtain financial information on any South African tax resident from various countries. This allows SARS to verify whether taxpayers have accurately reported their taxable income. Based on these information-gathering abilities, SARS has recently started to notify taxpayers that it intends to review their tax affairs specifically in relation to taxpayers ` offshore holdings.
The VOLUNTARY DISCLOSURE PROGRAM
Certain taxpayers who have not complied with their legal obligations may make a voluntary disclosure to SARS to regularize these foreign assets and income in terms of the Voluntary Disclosure Program (“VDP”) as provides for in the Tax Administration Act 2011
Under a successful VDP application, all administrative non-compliance and understatement penalties that would otherwise have been imposed will be waived. Criminal prosecution for a tax offence also be avoided. However, the taxpayer would still be liable to pay the original tax and the interest thereon. In order to qualify for such relief, the VDP application must: Be voluntaryInvolve a default that has not occurred within five years of the disclosure of a similar default by the applicantBe full and complete in all material respectsInvolve the potential imposition of an understatement penalty in respect of the defaultNot result in a refund due by SARS, and
We have had a lot of experience with the voluntary disclosure program and can assist were necessary.
RECENT CHANGES TO FOREIGN EXCHANGE REGULATIONS: Individuals may export dual/multi listed shares using their foreign investment allowances to a foreign share register from the South Africa share Registers.Online forex trading includes crypto trading is permitted using your foreign investment allowances or single discretionary allowance. These investments must be via bank accounts, not through credit or debit cards.The single discretionary allowance regulations are as follows:
Residents over the age of 18 years may be permitted a single allowance within an overall limit of R1 000 000 per individual per calendar year, without the requirements to obtain a Tax Clearance Certificate to cover the following discretionary allowances and
1.1 can be used for any legal purpose:
1.2 monetary gifts and loans
1.4 maintenance transfers
1.5 travel allowance (minors entitled to an annual allowance of R200 000)
1.6 study allowanceAuthorised offshore assets can be made available to other residents. This was not possible before. This is not retrospective.
|SERVICES WE PROVIDEStatutory AuditsReviews of financial statementsCompilation of financial statementsFinancial statements of Close CorporationsOutsourced Financial ManagementCompleting personal and corporate income tax returns and advising on the implications of income Tax legislationAccounting servicesProviding company secretarial services including Company formationsOutsourced Payrolls|