BGR 30 (Issue 2)
Issue 2 of BGR 30, dealing with the allocation of direct and indirect expenses within and between an insurer’s funds has been issued by SARS, whilst Issue 1, dealing with the same topic, has been archived.
Alert 45
In this week's alert:
IN102 (Issue 2)
IN102 (Issue 2) provides guidance on the interpretation and application of the definition of “risk policy” in section 29A(1) of the Income Tax Act. Issue 1 of IN102 has been archived by SARS.
IN119: Deduction of improvements to property(S12N)
IN119 has been issued by SARS on 12 May 2022 and deals with deductions in respect of improvements to land or buildings not owned by a taxpayer.
BPR 372: Lease payments for use of equipment
SARS has published Binding Private Ruling (“BPR”) 372 which considers whether lease payments for the use of equipment will constitute royalties in terms of a tax treaty between South Africa and another country, and whether the withholding taxes to be levied meet the requirements of section 6quat(1A).
IN 58: Principles enunciated by Brummeria
SARS has published Interpretation Note (“IN”) 58 (Issue 3) and Binding General Ruling (“BGR”) 8 (Issue 3) which describe the application of the principles enunciated by the Brummeria case and prescribe in which year of assessment the right to use an interest-free loan should be included in the taxpayer’s gross income as well as the method to calculate the value of such right