Tag archives: Tax

Search and seizure operations by SARS not only for taxpayer

In March 2024, the Supreme Court of Appeal held that SARS lawfully seized a director’s property during a search and seizure operation conducted at the premises of the company. SARS had obtained a warrant from the high court in terms of the Tax Administration Act authorising it to enter and search the company’s premises and … Continue reading

Doing good doesn’t always entitle an NPO to tax benefits

Tax exempt status may be awarded to a non-profit organisation (NPO) that solely or primarily undertakes public benefit activities with a philanthropic or altruistic intent. An NPO that has been granted tax exempt status (commonly referred to as a public benefit organisation or PBO) is generally exempt from income tax. Certain approved PBOs may also … Continue reading

National Treasury again commits to the ‘modernised system’ of exchange control regulation in 2022 Budget Speech

This blog was co-authored by: Kristin January, Candidate Attorney On Wednesday 23 February 2022, the Minister of Finance presented his inaugural Budget Speech.  The National Treasury confirmed its commitment to transformation of exchange control regulations with several new proposals: Individuals are permitted to export dual listed domestic securities to a foreign recognised exchange, subject to … Continue reading

Supplementary budget 2020

South Africa’s Finance Minister Tito Mboweni delivered a supplementary budget on Wednesday 24 June 2020, highlighting that business confidence will remain near historic lows, with investment and employment remaining constrained. This emergency budget comes only four months after the National Budget which has been left defunct in the wake of COVID-19 and a three-month lockdown … Continue reading

You may not claim both a section 18A certificate and BEE points for donations to a non-profit entity

Donations to non-profit entities may carry a tax benefit for the donor – the hallowed section 18A certificate. This allows the donor to claim a tax refund and encourages donations. Non-profit entities that are Public Benefit Organisations (PBO) can issue these certificates. PBO status is granted by the South African Revenue Service (SARS) under the … Continue reading

Tax relief measures for challenging times

The Minister of Finance announced tax relief measures in an attempt to assist small to medium businesses in the face of COVID-19. But what tax relief is available to taxpayers who fall outside the ambit of these new measures? Instalment payments Taxpayers unable to pay tax debts due to economic instability caused by the pandemic … Continue reading

How to establish a business enterprise in South Africa: Ten things to know

01 I Methods of incorporation A business presence can be established in South Africa, one can either incorporate a South African entity or incorporate a foreign offshore entity, as a so called ‘branch’ or ‘external company’. 02 I Applicable legislation Both forms of business enterprise are regulated by the Companies Act 2008. However, in the … Continue reading

South Africa 2019 Medium-Term Budget Policy Statement

The 2019 Medium-Term Budget Policy Statement (MTBPS) was recently delivered by Finance Minister Tito Mboweni and recognises that South Africa’s economic growth has been slowing alongside productivity and competitiveness. South Africa’s debt-to-GDP ratio is among the highest of its peer countries, with only Argentina, Croatia, Ukraine and Zambia worse off. It is projected that the … Continue reading

‘Controversial provisions’ in Draft Taxation Laws to have far-reaching implications

In July 2017, the first draft of the Taxation Laws Amendment Bill (TLAB) was released by National Treasury for public comment. It will give effect to the majority of the proposed tax legislation changes which were announced by the Minister of Finance in his annual budget speech in February. The TLAB contains a number of … Continue reading

Taxation of cryptocurrencies: Buying and selling Bitcoin

With Bitcoin’s popularity and value growing significantly, many wonder how cryptocurrencies will be treated by the South African Revenue Service (SARS) and other regulators. Bitcoin is one of hundreds of different cryptocurrencies in existence. Cryptocurrencies are unregulated, decentralised digital currencies which can be bought, sold and traded for fiat money or goods and services. According … Continue reading

A penny for your sweet tooth

Before purchasing a sugar sweetened beverage (SSB), spare one thought for the health consequences and another for your wallet. Late 2017 is likely to see the introduction of a new tax in South Africa in the form of a health promotion levy (or sugar tax). Empirical evidence suggests that the quality of human health has … Continue reading

Last chance to come clean

The Special Voluntary Disclosure Programme (SVDP) running until 31 August offers South African residents the opportunity to regularise their tax defaults and exchange control defaults. There have been a number of similar opportunities to regularise tax and exchange control affairs in the past. We have seen two previous special amnesty opportunities in 2003 and 2010 … Continue reading

Preparing for carbon tax without a carbon tax law

The question arises how businesses should prepare for the introduction of carbon tax on 1 January 2016, when the legislation has not been released. There are clues in the carbon tax policy paper released in 2013 by National Treasury about what we can expect to see in terms of the pricing of carbon and how it is … Continue reading

USA/SA FATCA agreement now prevents secret investments

In February 2014 SARS announced that the implementation date of the FATCA Agreement with the USA was 28 October 2014. What does this mean? FATCA is the international agreement imposed by the USA on all signatories (which in effect means any country wishing to remain on cordial financial terms with the USA) under which financial institutions … Continue reading

Government provides tax incentive to avoid those rainy days

National Treasury has published draft Regulations which allow tax free savings products and investments from 1 March 2015. Licensed banks, long-term insurers, managers of registered collective investment schemes, authorised users (stock-brokers), linked investment service providers (LISPs) and the National Government will be able to offer tax free savings and investments to the public and will … Continue reading

Withholding tax on interest pushed back again

Anticipating the widespread effect of the new withholding tax on interest, extensions to its application have been promulgated. The latest Taxation Laws Amendment Bill proposes a further extension of the implementation date to 1 March 2015. Payments of interest to or for the benefit of a foreign person by a South African borrower will be subject … Continue reading

FATCA reporting from 1 July 2014

Enacted in 2010, the US Foreign Account Tax Compliance Act (FATCA) seeks to prevent tax abuses by US persons living or operating outside of the US. FATCA imposes a 30% withholding tax on payments of US source income made to non-US financial institutions, unless they enter into an agreement with the US Internal Revenue Service … Continue reading

Tax planning is not dead

Ruan Jooste’s interesting Business Day article raises the question whether tax structuring is under threat. Although it correctly reminds us that companies engaging in tax structuring need to proceed with caution, tax structuring is alive, well and lawful. Getting advice on a balanced approach to tax structuring and implementing robust structures which achieve the best … Continue reading