税制改革概论及概要.docxVIP

1 Introduction And Overview Of Tax Reform In South Africa taxation is of great importance as it does promote the economic growth of the country. Taxation affects all individuals, all private and public institutions that earn or spend money in any way. For South Africa to sustain economy, the taxation of distributed profits is achieved through the Secondary Tax on Companies (STC) and South Africa differ from other countries cause the formal liability for the dividend tax is at the company level as opposed to the shareholder. The reforms take effect in two main phases with advantages as outlined below: The first phase is were rate of STC was reduced from 12,5% to 10% with effect from 1.October.2001, coupled with a broadening of the tax base. Phase two, entails the actual conversion of the STC into a dividend tax on shareholders and its implementation is contingent on the revision of international tax treaties that limit withholding tax on dividends to 0%. The anticipation was the phase will be completed by 2009. 2 Benefits to Corporate Taxpayers企业纳税人的好处 Corporate taxpayer have received fair share of tax relief aimed at encouraging further economic growth and fuelling employment. And a host of other measures have also been introduced - especially for small businesses to reduce the cost of compliance and create the space for further growth in this important sector of the economy, for example: The concept of a small business corporation (SBCs) was introduced in 2000 allowing smaller businesses to enjoy additional tax relief. I mean in 2005/6 SBCs with turnover under R35 000 pay no tax and only pay 10% tax if they have turnover up to R 250 000. Accelerated depreciation which was introduced for small business corporations with a 100% write-off for manufacturing assets and a 50:30:20 for other assets to encourage investment in these assets. Businesses with a turnover of R1M annually may now file VAT returns every four months instead of every two months like before