Tag archives: Tax

‘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