No matter what your project is, use an Advanced Tax Ruling to cover these four tax laws
When you want to start a certain transaction or project you need to know how it'll fall under the Tax Act. The problem comes in when there's no tax laws that cover the project or transaction you want to start.
In this situation, you'll turn to SARS for an Advanced Tax Ruling or ATR.
The ATR will help you find out exactly how SARS will tax your transaction or project before you've started. It's your tool into the future so you can get an idea of what decisions SARS will make about how to tax you.
But before you apply for an ATR, you need to know what laws it covers.
Keep reading to find out which laws come into play under an ATR...
Avoid costly tax issues
An ATR and tax law, here's what you need to know
Now, just because there aren't specific income tax laws that relate to the project you want to start, doesn't mean there aren't any law that govern it at all.
You'll normally apply for an ATR because you don't know which of the laws apply and you need clarity. So never assume your project or transaction isn't governed by any tax laws.
Rather apply for an ATR before you start so you can find out which of these laws will affect you…
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The four tax laws an ATR covers
These are the four most common laws that an ATR will cover
1. The Income Tax Act, 1962;
2. The Value Added Tax Act, 1991;
3. The Transaction Duty Act, 1949; and
4. The Uncertificated Securities Tax Act, 1998.
The project or transaction you want to start will definitely fall under one of these tax laws. So apply for an ATR first to find out which ones apply to you so you can avoid complications with SARS later on.