HomeHome SearchSearch MenuMenu Our productsOur products

Applying for an advanced tax ruling? Make sure it's for 1 of these 4 reasons

by , 21 April 2016
So you're currently dealing with a particular transaction or project, but there doesn't seem to be any tax law that deals with it! What now?

No problem! You see, if you happen to find yourself in a situation where you don't really know what the tax implications will be, you can apply to SARS for what we call an advanced tax ruling.

This will help remove all doubt, in that it'll show you how tax will apply to that particular transaction, before it takes place.

But don't get ahead of yourself, because it's not that simple!

There are only certain reasons with which you can apply for an advanced tax ruling.

In this article, we'll show you 4 of them. Let's take a look...

*****MUST HAVE*****

Every South African tax law explained by our experts

The Practical Tax Loose Leaf Service offers you:
·         All the definitions and legal regulations, useful advice, exceptions to the rules that help you slip through the legislative jungle of taxes.
·         Case studies and practical examples that show you what elements you should consider for your taxes to be perfect.
·         Red flags you need to watch out for and the penalties you'll face if you don't respect them.
·         Sample templates at your disposal, ready to be filled in, customised and printed.
 
Click here for more details
 
**********************
 
 
Reason#1:
 
If you create an employee benefit scheme and it forms part of the employees' gross income, your company will be able to apply for an advanced tax ruling.

Reason#2:

If you're a landlord, you may wish to know if the value of any upgrades on a leasehold property, if made by the tenant, will form part of the gross income in your hands.

Reason#3:

If there's a newly introduced section to the Income Tax Act, coming into effect soon, you may request an advanced tax ruling because you're not sure how this new section will affect your future transactions.

Reason#4:

You can request an advanced tax ruling if you need to know whether an amount you receive will be revenue or capital when SARS taxes the transaction.
 
IMPORTANT NOTE: You can only apply for an advanced tax ruling for transactions that'll happen in the future. You can't apply for one on a transaction that's already taken place.

There are absolutely no exceptions to this rule!
 
 
*So then, those were 4 reasons with which you can apply to SARS for an advanced tax ruling.

But there are other reasons too! To learn what they are, as well as how exactly to go about applying for advanced tax ruling, simply page over to Chapter A 04 in your Practical Tax Loose Leaf Service handbook, or click here to order your copy today. 


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>