Filing Season 2024: Make Sure to Check Your SARS Uploads
It seems like it was just the other day that I’d finished submitting the 2023 tax returns for of my clients—mainly because for two of them, it literally was. For the clients in question, the late submission was due to delays in obtaining IRP5 certificates from various providers. SARS has imposed the inevitable administrative penalties […]
A dive into South Africa’s revised assessed losses regulations
Navigating the complex world of corporate finance and tax regulations can be challenging for businesses. South Africa has recently undergone significant changes in its tax landscape, including limits on assessed losses and adjustments to corporate income tax rates. To stay informed, adaptable, and compliant, companies must seek expert advice and gain a better understanding of […]
Tax neutral asset for share transactions
The Income Tax Act contains various provisions in terms of which transactions can occur between specified parties without adverse tax consequences being incurred in respect of those transactions. These provisions are contained in sections 41 to 47 of the Income Tax Act and are generally known as the “group relief provisions”. Apart from certain value-shifting and general […]
“BOOKING” CAPITAL LOSSES ON SHARES IS NOT THAT EASY
There is a number of techniques that taxpayers use to reduce their capital gains tax (CGT) exposure on long-term share investments. A common practice is to utilise the annual exclusion of R40 000 provided for in paragraph 5 of the Eighth Schedule of the Income Tax Act[1] by selling shares that have been bought at a […]
DEDUCTIBILITY OF SED AND ED EXPENDITURE
The South African Revenue Service (“SARS”) recently issued a binding private ruling (“BPR”)[1] in which the income tax consequences of expenditure in respect of socio-economic development (“SED”) and enterprise development (“ED”) obligations were considered. The applicant in this case is a company that owns and operates a wind farm that generates electricity. In terms of […]
EXPANDING THE CONTROLLED FOREIGN COMPANY REGIME
We have previously reported on the “controlled foreign company” (“CFC”) regime as contained in section 9D of the Income Tax Act, 58 of 1962. Briefly again, that section seeks to impute the taxable income of a CFC into the hands of its South African tax resident shareholder. A CFC is in essence a foreign company […]
CONTROLLED FOREIGN COMPANIES
Section 9D of the Income Tax Act[1] houses the South African “controlled foreign company”, or “CFC” regime. The provision’s aim is to effectively impute the income of a foreign company into the hands of its South African shareholders where South African shareholders own a majority of the shares in that company. In other words, where […]
THE 2017 TAX SEASON IS OPEN
The Commissioner for SARS recently published the annual notice to officially ‘open’ the 2017 tax season. Individuals are now able to file their annual income tax returns for the 2017 year of assessment (which ended on 28 February 2017) from 1 July, and we request that our clients contact us so that we can arrange […]
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 borders of the Republic, that income earned is still included in that South African tax […]
CAPITAL GAINS AND CANCELLED SALES
Many transactions in terms in which assets are sold are subject to suspensive conditions. In terms of such agreements, the sales transaction will only take place once all the suspensive conditions have been met.[1] Many other agreements may however be subject to a resolutive condition. A resolutive condition involves one whereby an agreement is cancelled […]