This is the first in a series of articles explaining the process of submitting a request to SARS for an advance tax ruling. A SARS guide, Issue 3, dated 11 June 2025 provides: guidance in respect of the application for an advance ruling; and an overview of the Advance Tax…

This is the first article in a series discussing urban zone development allowances. This article lists the first of two requirements, the building requirement and urban development zone requirement, to be met for the allowances to apply. A second article will list further requirements. Source: SARS Guide to the Urban…

This is article 4 in a series of articles discussing the updated Tax Exemption Guide for Recreational Clubs published by SARS. Record-keeping All recreational clubs are required to keep records for five years from the date of submitting a return. A return includes any form, declaration, document, or other manner…

This is article 3 in a series of articles discussing the updated Tax Exemption Guide for Recreational Clubs published by SARS. Administrative provisions – Tax Administration Act The TA Act deals with tax administration and seeks, among other things, to simplify administrative provisions by incorporating them into one piece of…

This is article 2 in a series of articles discussing the updated Tax Exemption Guide for Recreational Clubs published by SARS. Other applicable tax liabilities Provisional tax Provisional tax is dealt with in the Fourth Schedule. It is not a separate tax, but rather a mechanism to assist taxpayers in…

This article extracts some basic information from the updated SARS Guide - Issue 5, not covered in a previous article published in 2021 on www.fincor.co.za named "Recreational Clubs and Taxation". Unfair competition with entities liable for normal tax It is a requirement that the qualifying business undertaking or trading activity…

Source: INTERPRETATION NOTE 69 (Issue 4) dated 26 June 2025Income Tax Act 58 of 1962, Section 26 and the First Schedule Section 26(1) provides that the taxable income of any person carrying on pastoral, agricultural or other farming operations shall, in so far as the income is derived from such…

In South Africa, divorce settlements are taxed in terms of the Income Tax Act. The tax implications of a divorce settlement depend on the nature of the assets being transferred. Transfer of assets: When assets are transferred from one spouse to another as part of a divorce settlement, the transfer…

A Promissory Note is a legal contract between a party that has borrowed money from another party that has lent the money. This document outlines the terms of repayment in writing and is signed by both parties. In addition to cases of borrowing money (personal or business loans), a Promissory…

Source information: SARS INTERPRETATION NOTE 116, dated 23 April 2021, and the INCOME TAX ACT 58 OF 1962, SECTIONS 49A to 49H The 40-page SARS Note provides guidance on the interpretation and application of sections 49A to 49H related to withholding tax on royalties. This article, the fourth in a…