Tax insights

26 March 2025

Taxation of collective investment schemes

On 13 November 2024, National Treasury issued a discussion document setting out various proposals regarding a revised tax regime for Collective Investment Schemes (“CIS”). Public comment was called for by 13 December 2024, whereafter a workshop with relevant stakeholders was held on 17 January 2025.

26 March 2025

Adjustments made to the ETI remuneration criteria

The employment tax incentive (“ETI”) was introduced on 1 January 2014, to help incentivise South African employers to employ young people and provide skills and experience to young South Africans who are unemployed and possibly discouraged in finding employment opportunities.

26 March 2025

Tax Penalty Shake-Up: What it means for taxpayers

While the spotlight has predominantly been on the 2% VAT increase in what seems to be a conventional budget speech, it is crucial not to overlook the nuanced provisions embedded within the budget aimed at enhancing future revenue collections.

26 March 2025

South Africa’s 2025 Budget Review Closes Loopholes

The 2025 Budget Speech has proposed amendments to section 20A of the Income Tax Act No. 58 of 1962 (“the IT Act”) that will aim close existing loopholes by redefining the application of the ring-fencing rules. South Africa’s tax system has long grappled with the challenge of balancing legitimate tax relief with the risk of tax abuse. Section 20A of the IT Act was introduced to curb the improper use...

27 March 2025

Urban Development Zone Incentive

UDZ Incentives and Transfer Duty Adjustments: A Catalyst for Urban Renewal

27 March 2025

Updates to renewable energy tax allowances

National Treasury has not renewed the accelerated 125% capital allowance related to renewable energy assets. We explore below the remaining capital allowances available for renewable energy assets.

7 March 2025

Tax Due Diligence

“Navigating M&A with Tax DD: Trends, Grants, and Common Pitfalls" "Tax Due Diligence in M&A: Trends, Tips, and Tricks for Success"

7 March 2025

South Africa's Global Minimum Tax Act

In an increasingly globalised economy, multinational enterprises (MNEs) have become adept at leveraging differences in tax systems to minimize their tax liabilities. This practice, known as Base Erosion and Profit Shifting (BEPS), has led to significant revenue losses for countries worldwide. To address these challenges, the Organisation for Economic Co-operation and Development (OECD) and the G20...

7 March 2025

Tax court upholds SARS’ invalid objection notice

In X and Another v Commissioner for the South African Revenue Service (52/2023) [2024] ZATC 12 (2 December 2024), the Tax Court of South Africa dismissed an application made to the court seeking validation of the objection submitted to SARS.

11 February 2025

THE TAXATION OF COLLECTIVE INVESTMENT SCHEMES

On 13 November 2024, National Treasury issued a discussion document setting out various proposals regarding a revised tax regime for Collective Investment Schemes (“CIS”). Public comment was called for by 13 December 2024, whereafter a workshop with relevant stakeholders was held on 17 January 2025. We unpack our perspectives on the consultation process to date.

11 February 2025

Exchange control & transfer pricing requirements

Following an announcement made by the Minister of Finance in the 2024 Budget review, Circular 13 of 2024 came into effect on 26 November 2024. The circular addresses the changes made to exchange control ruling B.3(C) dealing with royalties and fees payable by South African resident entities to non-resident parties.

11 February 2025

A practical perspective on provisional tax

Provisional taxpayers are required to submit two bi-annual provisional tax returns in a tax year. The purpose of provisional tax is essentially a mechanism whereby normal income taxes are collected in advance.

6 January 2025

The burden of assessed losses

Section 20 of the Income Tax Act No. 58 (1962) (“IT Act”) provides for the utilisation of prior year assessed losses against taxable income derived by a company. Certain legislative limitations impact the quantum of the assessed loss that may be utilised by companies.

6 January 2025

The importance of a prescription period

The South Africa Revenue Service (“SARS”) has the ability to issue revised assessments in terms of the Tax Administration Act No.28 of (2011) (“TAA”). In this regard, SARS is bound by regulations with regards to the period in which SARS can issue revised assessments. This period is referred to as the ‘period of limitations for issuance of assessments’ or the so-called ‘prescription period’.

6 January 2025

Tax-exempt government grants

Section 12P of the Income Tax Act No. 58 (1962) (“IT Act”) plays a crucial role in fostering economic development by providing tax relief for certain qualifying government grants.

5 December 2024

The duality of loans to offshore trusts

The 2024 Taxation Laws Amendment Bill (“TLAB”) introduces amendments specifically addressing the interaction between section 7C and section 31 of the Income Tax Act No. 58 (1962). Section 7C deals with interest-free or low-interest loans to trusts, and section 31 governs transfer pricing in cross-border transactions. The aim is to provide clarity and ensure that lending to offshore trusts is treated...

5 December 2024

Taking the guesswork out of VAT

On 11 December 2023, the South African Revenue Service introduced the issuance of estimated assessments in respect of value-added tax.

5 December 2024

Trust reporting obligations expanded

Over the past few years, the South African Revenue Service (“SARS”) have been enhancing their information gathering tools and technical skills in respect of South African trusts.

11 November 2024

Just because it’s related

SARS has finally provided some long-awaited guidance on the meaning of the term ‘similar finance charges’. In this article, we unpack the draft Interpretation Note issued in September 2024, to help you understand how SARS is likely to interpret this definition going forward.

11 November 2024

Navigating a tax due diligence

Whether you are a seasoned tax professional or new to the field, navigating a tax due diligence process can be a complex and daunting task. This article offers our insights and practical advice to help you navigate the intricacies of a tax due diligence.

11 November 2024

Tax advice – a thistle between the thorns

In determining a tax liability, the taxpayer will generally take a number of tax positions. To avoid tax disputes and the imposition of understatement penalties, it would be prudent to consider obtaining tax advice before a tax position is taken.

8 October 2024

Demystifying the Tax Control Framework

It is not easy being responsible for the tax function of a business in South Africa. The chances are that there are insufficient tax resources and that the tax function is perceived simply as a back-office compliance cost centre.

8 October 2024

The real cost of green for the mining sector

According to the 2023 South African Energy Sector Report, the primary source for South Africa’s energy supply is still coal. Renewable energy contributed only 1% to the total energy supply in 2021, while 80% of domestic energy production was generated by domestically produced coal.

8 October 2024

Key Insights from Binding Private Ruling 410

The South African Revenue Service (“SARS”) issued Binding Private Ruling 410 (“BPR 410”), providing insights into a technical aspect of South African income tax law concerning controlled foreign companies (“CFCs”) and their interaction with various sections of the South African Income Tax Act. Released on 11 September 2024, this ruling clarified the income tax and capital gains tax (“CGT”) consequences...

2 September 2024

When it all comes to naught

With the growth in cross-border transactions, it is anticipated that the supply of goods and services to non-resident companies will increasingly be scrutinised by the South African Revenue Service. Therefore, it is important that South African vendors familiarise themselves with the requirements of the value-added tax provisions relating specifically to supplies made to recipients that are not residents...

2 September 2024

Managing tax for SA mining expatriates:

South African expatriates working abroad in the mining industry must deal with complex tax challenges due to the interplay of South African tax laws and those of host countries.

29 August 2024

The ins and outs of input tax

The 2024 Draft Taxation Laws Amendment Bill (“2024 draft TLAB”) was published on 1 August 2024. It proposes that legislative amendments be effected to require input tax deductions to be claimed in the original tax period in which the entitlement to the input tax deduction arose.

17 July 2024

What do the changes mean for your retirement?

Originally announced by the National Treasury in their National budget address in February 2021, it was proposed that changes were to be made in the retirement savings system of an individual to try and encourage saving for retirement and to prevent South Africans from purposefully resigning when facing financial hardship in order to access their retirement funds. The proposed changes aim to promote...

SARS issues long awaited guidance

On 17 January 2023 the South African Revenue Service (SARS) issued Interpretation Note 127 (IN 127) providing long awaited guidance as to the treatment of cross-border intra-group funding transactions for transfer pricing purposes.

Checking on your tax residency status

If you have been living outside of South Africa for an extended period of time or regard yourself as a person who has emigrated from South Africa, this document is important for you to read.

Change in use adjustment: Residential property

It is proposed that changes be made to the VAT Act by the insertion of section 18D which will deal with the deemed change in use adjustment required when a dwelling is let for the first time if the dwelling remains permanently in the scope of VAT and the deemed supply made when the dwelling is subsequently sold. Section 18D is proposed to come into effect on 1 April 2022.

PBO fiduciary responsibilities

Have you accepted the responsibility as a fiduciary representing a Public Benefit Organisation (“PBO”) and do you know what you are responsible for?

Is there a tax benefit to working from home?

Since the forced lockdown experienced in 2020, many employees have had to work from home. In some instances, due to a shift in corporate culture, employees have chosen to continue this practice by no longer travelling to a fixed office on a daily basis. In some cases people have converted space at their home to function as their home office.

SARS should give crypto investors more carrot

It has been more than three years since SARS’s media statement on cryptocurrencies. In this statement SARS stated that it will apply “normal income tax rules” to cryptocurrencies when assessing whether a gain is revenue or capital in nature and that crypto assets are not seen as currency for income tax purposes.

Alert for those earning rental income

With the global online age it is easy for a taxpayer to advertise and rent out part of their home, or investment property, to paying guests. Many people are using online platforms, who can then monitor booking and assist with the logistics in the collection of the rental income. As easy as it is for a home owner to add his property to such an online site, so, can SARS, as the “prospective” renter,...

SARS: multinational entities & transfer pricing

On 31 August 2020, the South African (“SA”) Tax Court delivered judgement in the case referred to as SARSTC 14302. The court ruled against the taxpayer in respect of an application for discovery of documents relating to an underlying transfer pricing assessment matter. The case, as well as the underlying transfer pricing dispute, are briefly summarised below.

Transfer Pricing: SARS opens the door to APAs

An APA is an agreement between a taxpayer and SARS in terms of which the transfer pricing methodology for the pricing of a taxpayer's cross-border related party transactions are determined in advance for future years.

Extension of deadline Country-by-Country Returns

On 12 November 2020 the South African Revenue Service (SARS) issued a notice extending the deadline for the submission of Country-by-Country Returns (CbCR) under Notice No. 1117 published in Government Gazette No. 41186 dated 20 October 2017, for Reporting Fiscal Years commencing before 1 March 2020.

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