Tag Archives: Income Tax Act

Viewpoint: Deemed disposal at death

Section 9HA of the Income Tax Act is a deemed disposal rule for deceased persons is effective from 1 March 2016 and is applicable in respect of a person who dies on or after that date  Section 9HA of the … Continue reading

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Expat tax exemptions: No double taxation

On 1 March 2020, an amendment to the foreign employment income exemption comes into operation. There have been misperceptions about those expatriates that will be affected by this change to the tax law. Currently the exemption applies to South African … Continue reading

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Complexities of loans between related parties

Loans between related parties are a common occurrence in the SME business environment. These loans arise due to various reasons, such as assets being sold on loan account; money being drawn out, trust distributions made or dividends declared on loan … Continue reading

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Tax free investment savings accounts

Our clients will have noted the various advertisements on radio and in the media generally of financial service providers inviting the public to invest in their respective so-called ‘tax free savings’ investment products.  These accounts are made possible by section 12T of the … Continue reading

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Changes to bad debt allowance

Most South African businesses are at some point in time exposed to credit risk in the form of bad debts. Although taxpayers would undoubtedly prefer to recover the debts, the Income Tax Act[1] provides for some relief in cases where debts … 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] that … Continue reading

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Tax breaks for South Africans who install solar power systems

South Africa’s government, energy regulator and Eskom have often been criticised for obstructing the introduction of distributed, small-scale embedded generation (SSEG) which would help businesses to cut costs and ensure the stability of their power supply during load shedding. But … Continue reading

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Income vs revenue in the sale of shares

The distinction between amounts of a capital nature as opposed to a revenue (or income) nature is essential, and over the years, few other topics have enjoyed so much attention in our tax courts. Although most taxpayers appreciate this distinction, … Continue reading

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RING-FENCING OF ASSESSED LOSSES OF CERTAIN TRADES – PART I

Persons are generally allowed to set off any losses incurred in respect of one trade against the income derived from another trade, thereby reducing their overall tax liability. However, section 20A of the Income Tax Act[1]ring-fences losses incurred by natural … Continue reading

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TAX ON RETIREMENT LUMP SUMS

Determining the tax consequences in respect of any lump sum benefits from retirement funds can be complex and various legislative changes have been incorporated over the last few years, to regulate and align the tax treatment of these benefits. Lump … Continue reading

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