Tag: Tax
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Time Value of Money – Historical Tax Rates
It has often been said that inflation is the destroyer of wealth. To put this statement into a tax perspective, it is interesting to have a look back at historical rates of tax and related interest rates. It is, of course, true that earnings have also increased over the years, but it is nevertheless interesting…
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For how long can your taxes haunt you?
In terms of section 99 of the Tax Administration Act, 28 of 2011, an assessment may not be made three years after the date of an original assessment by the South African Revenue Service (SARS), or in the case of a self-assessment by a taxpayers (such as in the case of a Value-Added Tax return),…
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Tax consequences of usufructs created upon death
A usufruct is a limited real right in property. The usufruct construct takes the form of a common-law personal servitude, which, as a limited real right, grants the holder (the usufructuary) the right to use someone else’s property, including the fruits. Typical examples include where someone is granted the right to use a house, or…
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2019 Tax legislative amendment
The 2019 tax legislation amendment cycle commenced on 25 June, when National Treasury issued the initial batch of the Draft Taxation Laws Amendment Bill which covers specific provisions that require further consultation. National Treasury will be publishing the full text of the 2019 Draft Taxation Laws Amendment Bill for public comment in mid-July 2019. One…
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Belasting op buitelandse indiensnemingsinkomstes
Agtergrond Artikel 10(1)(o)(ii) bied verligting aan belastingbetalers deur nie op buitelandse indiensnemingsinkomste (“employment income”) belas te word nie aangesien die buitelandse maatskappy reeds LBS / belasting op daardie inkomste aftrek. Daar is egter sommige lande waar hul eie belastingwette bepaal dat geen belasting op buitelandse indiensnemingsinkomste afgetrek word nie. Die effek daarvan is dat sekere…
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Calculating your foreign currency capital gain
With the fast approaching 2019 tax season, taxpayers who have realised a capital gain in a foreign currency should take note of the special rules that apply to the translation of those gains to Rand. Generally, there are two ways of translating a capital gain or loss into Rand – a “simple method” and a…
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Requests for suspension of payment from SARS
Since its introduction, the “pay now, argue later” rule relating to disputed amounts of tax has been and remains to be the subject of much controversy, and rightfully so. The basic premise is that even though you disagree with an amount of tax, once you have been assessed by SARS, the amount becomes due and…
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Fixed and reimbursive travel allowances
When determining the best remuneration package for travelling employees, South African employers and employees are continuously considering the benefits between a travel allowance, a reimbursive travel allowance or both. For this purpose, the employees’ tax (“PAYE’’) and income tax consequences of these two allowances are set out in more detail below. A travel allowance is…
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Helpful tax resources
South African taxes are inherently complex and often involve interpretation, consulting and in exceptional cases, a fair amount of educated guessing on exactly what the legislature intended when the various acts were drafted. However, in order to assist taxpayers through the maze of information, there are some very helpful aids available to taxpayers and tax…
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Ring-fencing of assessed losses of certain trades – Part 1
Persons are generally allowed to set off any losses incurred in respect of one trade against the income derived from another trade, thereby reducing their overall tax liability. However, section 20A of the Income Tax Act[1]ring-fences losses incurred by natural persons from certain trades under specific circumstances. If applicable, the natural person will not be…
