Source: SARS.GOV.ZA A Section 18A tax deductible receipt is an official document issued by a Section 18A-approved institution to a donor who makes a qualifying donation. It serves as evidence […]
Income Tax Act
Transparency and Beneficial Ownership – Legal Entities and Legal Arrangements
Filing of Beneficial Ownership information is required by the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022. The Act amended the Companies Act and gave […]
Prohibition of deductions in respect of certain intellectual property – part 1
Sources:SARS Interpretation Note 120Section 23I of the Income Tax Act Background The use of intellectual property belonging to another person normally carries a charge in the form of a royalty. […]
RESIDENT – PLACE OF EFFECTIVE MANAGEMENT
– INCOME TAX ACT 58 OF 1962 SECTION 1(1) A “place of effective management”, in determining the tax residence of a company, is only one of the considerations under the […]
Dividends Tax
The legislative foundation for the new Dividends Tax is to be found in sections 64D to 64N of the Income Tax Act, 1962 (the Act) and became effective on 1 […]
Bursaries awarded by a Resident Company and the Income Tax Consequences
Binding private ruling: BPR 389 dated 6 June 2023Relevant Act: Income Tax Act 58 of 1962, Section 1(1) – paragraphs (c) and (i); Section (1)(q); paragraph 2 of the Seventh […]
Waiver of debt by an employer relating to the unwinding of a share purchase scheme
Binding Class Ruling BCR 086 dated 26 May 2023 Relevant legislation: INCOME TAX ACT 58 OF 1962SECTIONS 1(1) – PARAGRAPHS (c) AND (i) OF THE DEFINITION OF “GROSS INCOME”, 10(1)(nE) […]
Exclusion of certain companies and shares from a “GROUP OF COMPANIES” as defined in Section 41(1) of the Income Tax Act
Relevant Acts:Income Tax ActThe Taxation Laws Amendment ActThe Tax Administration Laws AmendmentThe Rates and Monetary Amounts and Amendment of Revenue Laws Act Under specified circumstances, the corporate rules provide relief […]
Mining and Petroleum Royalties and Taxation
The mining industry is governed by different pieces of legislation, such as the MPRDA, MPRRA, Income Tax Act, VAT Act, Customs and Excise Act, and NEMA. The mineral royalty was […]
Draft guide to the Employment Tax Incentive
In March 2023 SARS issued a new draft guide to the Employment Tax Incentive. It’s a lengthy 56 pages and can be downloaded from the SARS website. The employment tax […]