The Minister of Trade and Industry in South Africa published the final notice on Financial Reporting Pronouncement 1 (FRP 1) which has been issued by the Financial Reporting Standards Council. The notice provides the substantively enacted tax rates and tax laws under IFRS and IFRS for small and medium enterprises. Provisions concerned in the notice come into force on the date of publication.
This notice incorporates the relevant references from IFRS for SMEs and revises the illustrative examples to reflect both a change in corporate tax rate and a change to the inclusion rate for capital gains. Capital gains are included in taxable income on a proportionate basis.
On February 2015, the Minister of Finance announces in the Budget Statement the following changes:
On the basis of this FRP, the date of substantive enactment of both the corporate tax rate and capital gains tax rate change is February 23, 2015. However, for entities with a year-end prior to April 1, 2015, the rate of tax to be used for current tax is 30%; for capital gains arising in years of assessment beginning before April 1, 2015, 66.66% of such gains should be included in the calculation of current tax; whereas an inclusion rate of 80% should be used for capital gains arising in years of assessment beginning on or after April 1, 2015.
As a result, corporate tax rate changes from 30% to 29% and in capital gains tax rate changes from 19.98% (equals to 66.66%*30%) to 23.2%(equals to 80%*29%).
Source: South Africa Gov
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):