Deducting income tax and CGT for estate duty

Is subjecting taxpayers to estate duty on post-death asset growth appropriate? IN 1789 Benjamin Franklin said that “in this world nothing can be said to be certain, except death and taxes”. He was right about death—but anyone who has had to interpret our tax laws would know that the task is fraught with uncertainty. This […]

What you need to know regarding home office expenses

The way we work on a day-to-day basis changed significantly since the Covid-19 pandemic with many employers adopting a more hybrid working model. This new economic environment and new ways of working created an environment where SARS and taxpayers had to adapt accordingly with new focus on salaried employees working from home to claim certain […]

Render unto Caesar: Shares and the SARS slice

Whether you are a share trader or a long-term investor, when you make a profit, SARS will want its slice of the pie Ever since biblical times, there has been a tug-of-war between governments trying to extract as much as possible from their citizens in the form of taxes, and individuals trying to keep as […]

The effect of past transactions on the sale of a business

The sale of a business is often a complex venture and requires consideration of various facts in examining the financial reality behind the sale. From the outset, it is important to consider historical transactions and how they may have a detrimental impact on the current sale being considered. For purposes of this article, several factors […]

Taxation of variable remuneration: Changes are coming

The Draft Taxation Laws Amendment Bill was published on 29 July 2022. The bill’s publication marks the start of the tax legislative amendment season. The proposed legislative amendments are currently open for public comment and participation. Executives and payroll administrators should take note of a proposed change to the way in which variable remuneration will […]

Ceasing tax residency: Changes on the horizon for interest and capital gains

Section 9H of the Income Tax Act provides that a natural person’s year of assessment is deemed to have ended on the date immediately before the day on which that person ceased to be a resident for South African tax purposes. Furthermore, that person’s subsequent tax year is deemed to commence on the day that […]

Section 24C Allowance: Future expenditure

The nature of a taxpayer’s business may be such that the taxpayer receives amounts under a contract that will be used to finance expenditure to be incurred in future in performing under that contract. Generally, this would result in an inclusion of the amount in that taxpayer’s income in that year of assessment. In contrast, […]

Don’t lose that assessed loss!

Assessed losses can be carried forward—provided that the company doesn’t cease trading If the amount of allowable deductions exceeds the taxable income in your business, you will end up with what is known as an ‘assessed loss’ for tax purposes.  In terms of Section 20 of the Income Tax Act, you are entitled to carry […]

Employee share incentive schemes

Employer companies generally implement employee share incentive schemes to retain and incentivise their employees by enabling the latter to receive indirect benefits from the appreciation in the growth of the company. This is an effective way to offer benefits to employees and encourage their participation and loyalty of employees. Even though these schemes are generally […]

PAYE and non-residents

Employment income is generally taxed where the services are physically exercised. The place of contract conclusion, where the employer is based and where the remuneration is paid is irrelevant in determining the taxation of employment income. This principle is supported by South African legislation and case law. Income earned from South African employers for services […]