Legislation: Income Tax Act, Sections 80 and 103 Tax avoidance is a complex concept that creates uncertainty in the South African tax law system and results in revenue loss. Tax […]
Income Tax
Wear-and-tear or Depreciation Allowance
This article (part 2) discusses the basics of policies on determining the allowance’s amount and methods for determining it. It refers to an Annexure; this is merely a list of […]
Interest deductibility in South Africa
In South Africa, interest is deductible under the Income Tax Act, whether or not the interest is capital in nature, provided the interest is incurred “in the production of income” […]
Leasehold improvement allowance and Section 11(h) of the Income Tax Act
Source: Private Binding Ruling BPR 401 of 14 December 2023 This ruling determines the tax consequences for a lessor in respect of improvements effected by a lessee. In this ruling […]
Tax Consequences of the Termination of an En Commandite Partnership
Binding Private Ruling 391 ACT: INCOME TAX ACT 58 OF 1962SECTION: PARAGRAPH 1 – DEFINITION OF “ASSET”, “DISPOSAL” and “VALUE SHIFTING ARRANGEMENT”, and PARAGRAPH 11 OF THE EIGHTH SCHEDULE TO […]
Section 18A – Audit Certificates, Part 2
ACT: Income Tax Act 58 OF 1962, Section 18A(2B) AND (2C) This is part 2 of 2 in this series of articles. Please read part 1 before reading this second […]
Tax Guide for Share Owners
This article (number one of a series of articles) summarises some of the key aspects holders of shares need to be aware of in computing their liability for income tax […]
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 […]