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...
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
Rather apply for an ATR before you start so you can find out which of these laws will affect you…
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There are hundreds of companies out there that don't know which fringe benefits are taxable or they land up taxing the wrong percentage on them...
This kind of error could cost you thousands in penalties to SARS if it catches you out – and it will!
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.