Taxation Tutoring for PGDA & CTA

The general deduction formula is the backbone of South African income tax. Section 11(a) of the Income Tax Act No. 58 of 1962 permits a deduction for expenditure and losses actually incurred in the production of income, provided the expenditure is not of a capital nature. The formula analysis asks four questions in sequence: was there expenditure or a loss? was it actually incurred? was it in the production of income (the trade nexus)? and is it capital or revenue in nature? Students typically lose marks by skipping the framework or misclassifying capital versus revenue items. In ITC questions, a well-structured formula analysis showing each limb earns marks even if you reach the wrong final answer, whereas a one-line conclusion earns nothing. I make sure students can apply the formula to unfamiliar fact patterns, not just recall the definition.

Provisional tax is a mechanism under the Fourth Schedule to the Income Tax Act that requires taxpayers who earn income other than remuneration (salary) to pay tax in advance during the tax year. A provisional taxpayer makes two compulsory payments: the first payment is due six months into the tax year (31 August for February year-end individuals) and must be at least 50% of the estimated tax liability; the second payment is due at the end of the tax year (28/29 February) and must bring the total provisional payments to at least 90% of the actual liability to avoid a penalty. A voluntary third payment can be made six months after the tax year-end to top up and reduce interest. The key exam trap is confusing provisional tax with final tax: provisional payments are credits against the normal tax assessed when SARS issues the assessment. For CA(SA) students, the ITC tests provisional tax calculations as a stand-alone question and as part of integrated income tax scenarios.

Both zero-rated and exempt supplies fall outside the standard 15% VAT rate in South Africa, but they have completely different consequences. A zero-rated supply is still a taxable supply under the VAT Act, Act 89 of 1991, but the tax charged is 0%. Because it is a taxable supply, the vendor can claim input tax credits on costs related to making zero-rated supplies. Basic food items (brown bread, maize meal, fresh vegetables, fresh fruit, dried beans, lentils, eggs, milk, unprocessed cereals and legumes), petrol, diesel, paraffin, and exports are the main zero-rated categories. An exempt supply is not a taxable supply at all: no VAT is charged on the output, and no input tax may be claimed on related costs. Financial services, residential accommodation in a dwelling, and educational services are the common exempt categories. The exam trap is claiming input tax on costs related to exempt supplies: that is not permitted. I work through the distinction using real examples from ITC past papers.

Capital Gains Tax in South Africa is governed by the Eighth Schedule to the Income Tax Act and applies to capital gains realised on the disposal of assets. The key steps are: identify the disposal event (sale, donation, death, deemed disposal); determine the proceeds received or accrued; subtract the base cost (what was paid for the asset plus allowable costs of improvement and disposal); arrive at the capital gain or capital loss; apply the annual exclusion for individuals (R40 000 for most disposals, R300 000 in the year of death); multiply the net capital gain by the inclusion rate (40% for individuals, 80% for companies) to get the taxable capital gain; then that taxable capital gain is included in taxable income and taxed at the taxpayer's marginal rate. The common exam challenges are correctly identifying the base cost (especially for assets held before the CGT commencement date of 1 October 2001, which requires the valuation date method or the 20% rule or the time-apportionment method) and applying the primary residence exclusion correctly. For companies, the 80% inclusion rate combined with the 28% (now 27%) corporate tax rate effectively taxes capital gains at around 22.4%.

Yes, taxation appears in both. In the ITC, taxation is tested as a discrete subject paper alongside Financial Accounting, Management Accounting and Finance, and Auditing. An ITC tax paper typically includes a normal tax computation for an individual (income from employment, fringe benefits, allowances, rental income, business income, provisional tax credits, medical tax credits, retirement fund deductions), a company tax scenario, a VAT question, and sometimes CGT or estate duty. The questions are structured and test technical accuracy: applying the correct section, getting the formula sequence right, and knowing which items are included or excluded. In the APC, taxation is not a standalone paper. Instead, tax considerations appear throughout the integrated case study: a business decision might have normal tax, dividends tax, and CGT implications that you need to identify and advise on, often alongside an audit or financial reporting angle. APC candidates need to think about tax as a dimension of business decisions, not just as a calculation subject. The preparation approach differs significantly between the two exams, and I prepare students for both explicitly.

Send a WhatsApp message to +27 71 325 5295. Let me know where you are in your studies (undergrad tax module, PGDA taxation year, or CTA/APC level), which topic is causing you difficulty, and whether you prefer a 1:1 session or a small group. I will confirm availability and we will set up a session.