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.
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’.
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.
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...
On 11 December 2023, the South African Revenue Service introduced the issuance of estimated assessments in respect of value-added tax.
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.
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.
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.
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.
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.
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.
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...
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...
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.
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.
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...
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.
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.
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.
Have you accepted the responsibility as a fiduciary representing a Public Benefit Organisation (“PBO”) and do you know what you are responsible for?
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.
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.
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,...
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.
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.
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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