2021/22 Budget surprisingly simple
The 2021 Budget Speech, delivered Wednesday 24 February, by Finance Minister Tito Mboweni may have contained a little good news for middle-class income taxpayers, but arguably, not much has been changed.
Forvis Mazars Messenger March 2021 (Tax edition)
Who we areNews and publicationsOur publicationsForvis Mazars Messenger
Forvis Mazars Messenger March 2021 (Tax edition)
Our latest edit of thought leadership articles from the past few weeks.
Click below to read individual articles or scroll below to download the full edition.
Click below to read individual articles or scroll below to download the full edition.
Potential VAT relief for property developers
Is section 18B of the VAT Act making a comeback? In the Budget review for 2021, a proposal in relation to the review of the current VAT treatment of the temporary letting of residential property was put forward.
A smile can mean a thousand words:
Minister Tito Mboweni tabled one of the most anticipated budget speeches in years on 24 February 2021. From behind our face masks we waited for the expected and unexpected tax increases. However, Minister Tito Mboweni presented the budget with the flamboyance of a veteran motivational speaker. A few jokes and no real tax increases made us feel at ease, and for a moment those smiles hide a thousand...
Leaving South Africa?
You will now pay tax on your retirement savings and it may be locked in for a minimum of 3 years
Tax madness time: maybe not so mad this time?
It’s March! With March always comes the “what now?” after the budget speech, which was presented on 24 February this year by our current Minister of Finance, Tito Mboweni.
Corporate tax rate change
While the proposal to reduce corporate tax rates is well received, it should be noted that the interest and loss limitation rules most probably neutralise this effect. Taxpayers, especially in the new investment sector, may still face cash flow constraints through these measures.
Is the sun setting on Section 12J?
In a move that came as somewhat of a surprise Finance Minister Tito Mboweni announced during the 2021 Budget that the section 12J incentive would not be extended past its sunset clause of June 30. This move is likely to be the final nail in the coffin for this generous incentive, in terms whereof investors in a section 12J approved Venture Capital Company (VCC) benefit from a full tax deduction upfront...
Amendment to section 45 intra-group transactions
Following the Budget Speech held 24 February 2020, Annexure C was released and confirmed proposed changes to section 45 intra-group transactions to address certain anomalous situations which could arise.