Following the Minister of Finance’s recent Budget Speech, SARS released an updated Guide in March 2023 for allowances applicable to employers and employees. SUBSISTENCE ALLOWANCESection 8(1)(a) read together with section […]
Income Tax Act
Estate Duty – part 1
This article deals with the financial outcome related to the estate of a deceased person. The topic will be covered in more than one article as the detail is extensive […]
Determination of taxable income derived from farming
SARS recently published a “DRAFT GUIDE ON THE TAXATION OF FARMING OPERATIONS”. This 77 page is well written and very detailed. Whilst this article attempts to summarize the guide as […]
Definition of “Associated Enterprises” – Section 31 of the Income Tax Act
On Friday, 14 October 2022, the South African Revenue Service (SARS) published a Draft Interpretation Note: Definition of “Associated Enterprises” (the Note) for public comment. This Note provides guidance on […]
Section 11D of the Income Tax Act – Research & Development (R&D) tax incentive’s proposed amendments
The Government is proposing to extend the Research & Development (R&D) tax incentive beyond 31 December 2023 – likely for a period of 10 years following a consultation process with […]
Public Schools and Income Tax
Although public schools are exempt from Income Tax, in terms of section 10(1)(cA)(i) of the Act, they are still liable for the submission of annual income tax returns. Public schools […]
Tax Avoidance and Income Tax Act
Section 80A(c)(ii) of the Income Tax Act 58 of 1962, as amended, introduced a new concept to the South African income tax environment: misuse or abuse of the provisions of […]
Withholding Tax on Royalties (WTR)
Documents referred to in this article: WTR01 – return form Withholding Tax on Royalties Declaration (WTRD) Withholding-Tax-on-Royalties-Summary-of-DTA-Rates-Africa Withholding-Tax-on-Royalties-Summary-of-DTA-Rates-Rest-of-the-World This article summarizes the detail of the Withholding Tax on Royalties. The […]
Tax Implications for Resident Beneficiaries of a Foreign Pension Trust
SOURCE: SARS BINDING CLASS RULING: BCR 080 DATED 12 August 2022 ACT: INCOME TAX ACT 58 OF 1962 (the Act) ESTATE DUTY ACT 45 OF 1955 (Estate Duty Act), SECTION […]
TAXATION OF REIT’s
This article deals with taxation related to REITs – “Real Estate Investment Trust” as defined and dealt with in the Income Tax Act, Section 25BB and will be a series […]