Tag Archives: Tax

EXEMPTION FOR FOREIGN SALARY EARNERS

South African tax resident individuals are liable to income tax on their worldwide income. In other words, where a South African tax resident individual were to earn a salary for employment which may from time-to-time be exercised outside of the … Continue reading

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BEWARE OF CAPITAL GAINS TAX WHEN YOU EMIGRATE

While many people immigrate to South Africa, we also see many of our clients emigrating from South Africa. And while formal migration-status is not necessarily linked to tax residency, the time of tax migration often coincides with formal emigration linked … Continue reading

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FIVE INPUT TAX CLAIMS YOU’RE NOT ALLOWED TO MAKE

Input tax is the VAT you pay your suppliers in the course of your business as well as VAT paid on goods you import. SARS allows you to claim the input tax for your relevant tax period when you complete … Continue reading

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INTEREST FREE LOANS WITH COMPANIES

The latest annual nation budget presented in Parliament proposed the dividends tax rate to be increased with almost immediate effect from 15% to 20%. The increased rate brings into renewed focus what anti-avoidance measures exist in the Income Tax Act[1] … Continue reading

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BUDGET 2017

Following the annual national budget speech delivered by Finance Minister Pravin Gordhan on 22 February, we highlight some of the most significant matters arising below: A new tax bracket will be introduced targeting the wealthy as well as trusts. It … Continue reading

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UPDATE: TAX CLEARANCE CERTIFICATES

On 18 April 2016 the Tax Clearance Certificate application process as we know it was amended by the South African Revenue Service (SARS). This is good news as your Tax Clearance Certificate may now be obtained online via e-filing immediately. … Continue reading

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EXPLAINING ZERO RATED VAT

Value-Added Tax, or VAT, is currently typically charged at 14% on all taxable supplies of goods or services rendered by registered VAT vendors. Taxable supplies exclude exempt supplies, such as providing financial services, residential accommodation or educational services (see section … Continue reading

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EMPLOYER INTERIM RECONCILIATION

In the past SARS required the Employer Reconciliation to be done every twelve months. A few years ago SARS introduced the Employer Interim Reconciliation in addition to the annual Employer Reconciliation. The Employer Interim Reconciliation have the same requirements as … Continue reading

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HOW SOUTH AFRICAN DIVIDENDS ARE TAXED

Dividends received by a South African taxpayer are generally exempt from income tax. The major exemption though being dividends received from so-called REITs (these being some of the major property owing companies listed on the JSE (such as for example … Continue reading

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TAX IMPLICATIONS LINKED TO PBO’s

Many taxpayers are well aware of the beneficial income tax regime linked to public benefit organisations (“PBO’s”). Qualifying entities may be registered as a PBO in terms of section 30 of the Income Tax Act, 58 of 1962, and become … Continue reading

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