Income tax act

November 26, 2020

What Happens When Debt is Waived?

Many natural persons or trust shareholders in companies are confronted with the unintended tax consequences of owing an amount on a loan account to the company in which they […]
November 19, 2020

What happens when debt is waived?

Many natural persons or trust shareholders in companies are confronted with the unintended tax consequences of owing an amount on a loan account to the company in which they […]
May 19, 2020

TELKOM’S INSENSIBLE GAINS AND LOSSES

The Supreme Court of Appeal (“SCA”) delivered judgement on 25 March 2020 in a matter that primarily deals with gains or losses caused by foreign exchange […]
March 12, 2020

ARE MY DONATIONS BEING TAXED?

BPR 338 deals with the tax treatment of payments made to a Public Benefit Organisation (PBO) at a fundraising event, under section 30 of the Income […]
March 12, 2020

DO YOU FALL WITHIN THE “CONNECTED PERSONS” DEFINITION?

On 28 January 2020, SARS released interpretation note 67 providing guidance on the term “connected persons” in section 1(1) of the Income Tax Act. The interpretation […]
January 23, 2020

INTRA-GROUP TRANSACTIONS: HOW IT WORKS

The South African Revenue Service (“SARS”) issued a private binding ruling (BPR329) on 27 September 2019 on the tax implications of intra-group transactions and the subsequent […]
September 30, 2019

HOW TO QUALIFY AS A PUBLIC BENEFIT ORGANISATION

Non-profit organisations can apply for approval as a “public benefit organisation” (“PBO”) in terms of section 30(3) of the Income Tax Act[1] in order to qualify […]
September 30, 2019

DEDUCTION FOR HOME OFFICE EXPENDITURE

More and more employers are allowing salaried employees to work from home to avoid wasting productive hours while commuting. Such employees may claim a home office […]
August 13, 2019

FOREIGN CURRENCY: CAPITAL GAIN

With the fast approaching 2019 tax season, taxpayers who have realised a capital gain in a foreign currency should take note of the special rules that […]
June 28, 2019

SALE OF SHARES: INCOME VS REVENUE – BACK TO FIRST PRINCIPLES

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 […]
March 22, 2019

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

Section 20A of the Income Tax Act[1]ring-fences losses incurred by natural persons from certain trades under specific circumstances. If applicable, the natural person will not be […]
March 22, 2019

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 […]
February 26, 2019

NON-RESIDENT SELLERS OF IMMOVABLE PROPERTY

Section 35A of the Income Tax Act[1] came into effect on 1 September 2007 and sets out the capital gains tax consequences of the sale of […]
January 21, 2019

THE COMMON LAW DOCTRINE OF SIMULATION

In addition to specific anti-avoidance provisions and the general anti-avoidance provisions (GAAR) in the Income Tax Act,[1] the South African Revenue Service can apply another established […]
November 14, 2018

DIFFERENT INTEREST RATES IN TAX

The Income Tax Act[1] contains definitions for various interest rates. These interest rates serve as the basis for interest calculations in income tax in different circumstances […]
November 14, 2018

DEDUCTION FOR PHOTOVOLTAIC SOLAR ENERGY PLANTS

Section 12B(1) and (2) of the Income Tax Act[1] provides for a 50/30/20 income tax deduction in respect of certain machinery or plant owned by the […]
October 19, 2018

SPECIAL TRUSTS

The Income Tax Act[1] includes specific provisions for “special trusts”. These trusts are taxed on the same sliding scale applicable to natural persons, which could be lower […]
August 15, 2018

EMPLOYEES’ TAX (PART II): ARE YOU A LABOUR BROKER FOR TAX PURPOSES?

The deduction of employees’ tax is dependent upon three elements being present. These elements are all defined in the Fourth Schedule to the Income Tax Act[1] […]
June 11, 2018

TAX DEDUCTIONS AGAINST SALARY EARNINGS

Our clients who earn only a salary will know that very few tax deductions are available against salary income for income tax purposes and whereby they […]
March 19, 2018

ADDITIONAL MEDICAL EXPENSES TAX CREDIT

Section 6B of the Income Tax Act[1] provides for an additional medical expenses tax credit (“AMTC”) which is calculated against qualifying “out of pocket” medical expenses. […]
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