CATEGORIES


Latest News

[FAQ] VAT and PAYE registration of a sole propriet...

A taxpayer owns a supermarket as a sole proprietor – he and his wife are married in community of pro...


Read More

[FAQ] VAT registration and output tax after a tend...

A taxpayer was awarded a tender. The taxpayer registered for VAT in March 2021. At the time of regis...


Read More

Working from home and claiming home office expense...

To answer the questions of who, when and what would qualify for a deduction, the SARS has issued gui...


Read More

Individuals Tax News

Working from home and claiming home office expense...

To answer the questions of who, when and what would qualify for a deduction, the SARS has issued gui...


Read More

The tax treatment of crypto asset transactions

Among these are questions surrounding the tax treatment of crypto asset transactions which have incr...


Read More

[FAQ] Tax-free investment made on behalf of a mino...

A taxpayer opened a tax-free investment for his 2-year old daughter in her name. Is this declared in...


Read More

Corporate Tax News

[FAQ] Fees paid to a business rescue practitioner

Are the fees paid to a business rescue practitioner tax deductible?


Read More

[FAQ] Tax consequences of loans between group comp...

What are the tax consequences for both Company A and Company B if Company A either capitalizes the l...


Read More

[FAQ] Income tax deduction with regards to bursari...

A large corporation wishes to make bursaries available to its staff. They have been approached by a...


Read More

VAT Introduction & Registration News

[FAQ] The VAT registration of a farming operation

A taxpayer wants to register a farming operation for VAT.


Read More

[FAQ] VAT deregistration as a result of disruption...

A company involved in the tourism and conservation industry has submitted nil VAT returns as there w...


Read More

VAT periods News

Getting out what you put in…A recap on the deducti...

Author: Varusha Moodaley


Read More

Further clarification on the VAT registration of n...

Author: Jerome Brink


Read More

Contingency Fees: VAT inclusive or exclusive?

Author: Gerhard Badenhorst


Read More

Tax returns and payments News

Weekly transfer pricing roundup – 19 June 2017

Author: Marcus


Read More

Deregistration News

Deregistration as a VAT Vendor

A sole proprietor performs services for clients abroad. More than 90% of the taxpayer’s revenue is d...


Read More

VAT Output Tax News

[FAQ] VAT implications of a change from a resident...

A VAT registered trust bought two residential properties. No input tax was claimed on the purchase o...


Read More

[FAQ] Commercial accommodation exceeding 28 days

Two companies are connected persons for VAT purposes. One company operates a guesthouse and the othe...


Read More

[FAQ] Change in use adjustments on developed prope...

A property developer developed a property consisting of 6 units. Input tax was claimed on the develo...


Read More

Zero Rated News

[FAQ] Is the sale of borehole water a zero-rated s...

Client “A” is a farmer who is a registered VAT vendor. His neighbour (Client “B”) is a poultry farme...


Read More

VAT Input Tax News

[FAQ] Input tax on the purchase of plastic from bi...

A taxpayer is a registered VAT vendor and has a business of recycling plastic. He buys the plastic f...


Read More

[FAQ] Deemed input VAT on the purchase of property

A client purchased a property for R5million. Two valuations were obtained on the property of which t...


Read More

[FAQ] Input tax prior the effective date of regist...

When a new company registers for VAT can the company claim input tax on capital and standard rated p...


Read More

Notional input tax News

Value-added tax & transfer duty: Clarity or confus...

Where fixed property is purchased by a VAT vendor from a non-vendor, transfer duty is payable thereo...


Read More

Input - Customs Duty News

VAT on imported services payable by non-registered...

On 1 June 2020, the South African Revenue Service (SARS) issued an external guide titled ‘Manage Dec...


Read More

Salaried Employees Fringe Benefits News

Employment tax COVID-19 chronicles: Employer-provi...

Disaster Relief tax legislation provided relief in various areas of our tax and related legislation....


Read More

[FAQ] Employee benefits in respect of interest on...

A taxpayer owns a residential property and a husband and wife (non-related) run his business. The ta...


Read More

Salaried Employees - Share plans News

BPR 352 – Taxation of employees participating in a...

This ruling determines the tax consequences relating to the exercise of share options acquired by an...


Read More

International Tax for Individuals News

Why the wait when you emigrate?

When making a fresh start in a new country with no intention of returning to South Africa, a person...


Read More

[FAQ] Income tax consequences for an individual ta...

A taxpayer who is a South African tax resident and an academic doctor (he researches cultures), rece...


Read More

Inclusive Framework issues Statement on the Two-Pi...

This is the fifth in ATAF?s series of Technical Notes on the tax challenges arising in Africa from t...


Read More

Farming - Individuals Tax News

Farmers claiming diesel rebate

The Supreme Court of Appeal recently overturned a decision by the High Court. The impact of the deci...


Read More

Capital Gains Tax - Individuals Tax News

[FAQ] The tax implication when cryptocurrency is s...

It is stated that income on cryptocurrency that was mined will be taxed when income is received/accr...


Read More

Practical Payroll News

Payment holiday for Skills Development Levy contri...

The COVID-19 outbreak together with extended lockdown continues to have a negative impact on the cas...


Read More

[FAQ] EMP501 Reconciliations

The taxpayer works as a tax practitioner at a company where they submit between 150 to 200 EMP501 re...


Read More

Salaried Employees - Specific Transactions News

Tax consequences of day trips undertaken for busin...

Qualifying subsistence allowances are excluded from taxable income in terms of section 8(1)(a)(ii) o...


Read More

Employer and Employee (PAYE and UIF Specific) News

[FAQ] Should benefits received from the South Afri...

Should benefits received from SAFT be included or excluded from the IRP5 and will these benefits rec...


Read More

Travel allowance News

Reimbursive travel allowance

Where an allowance or advance is based on the actual distance travelled by the employee for business...


Read More

Income: Exempt Income News

Do bursaries to relatives of employees still hold...

Sections 10(1)(q) and (qA) provide for an exemption when a qualifying bona fide bursary is provided...


Read More

Contributions to retirement funds News

[FAQ] Retirement Annuity Fund Contributions

Dr X closed his practice during the 2019 tax year. During the 2020 tax year he earned a salary. He h...


Read More

Section 6quat updated News

Interpretation Note 18 (Issue 4) - Rebate and dedu...

This Note explains the scope, interpretation and application of section 6quat which provides for a r...


Read More

Application of tax rates, s6(2) rebates News

[FAQ] Rebates in the year a taxpayer ceases to be...

A taxpayer ceased to be a resident in South Africa and it came to his attention that SARS allows the...


Read More

Specific and Prohibited Deductions News

Tax deductions for future expenses

Taxpayers may deduct an allowance for certain future expenditure in terms of section 24C, despite no...


Read More

Inextricably linked contracts? The Constitutional...

On 21 July 2020, the Constitutional Court (CC) handed down judgment in Big G Restaurants (Pty) Ltd v...


Read More

Big G Restaurants (Pty) Limited vs Commissioner fo...

At issue is whether income derived from patrons of certain Spur and Panarottis restaurants is deduct...


Read More

Retirement Lump Sum Retirement Benefits News

[FAQ] Retirement lump sums and the applicable tax...

There was a retirement fund contribution amount carried forward per the taxpayer’s 2019 income tax a...


Read More

Public Sector Pension Funds News

Planning ahead: SARS issues binding private ruling...

On 22 November 2020, SARS issued Binding Private Ruling 355 (Ruling), regarding the taxation of amou...


Read More

Annuities News

Notices on Expanding Access to Living Annuity Fun...

The Notices on Expanding Access to Living Annuity Funds were gazetted on Monday 1 June 2020.


Read More

Capital gains tax basic Tax News

[FAQ] Capital Gains Tax

A non-resident (beneficiary and trustee) donates R10 million to a Trust in year one. The Trust uses...


Read More

Contextualising provisional tax News

[FAQ] What alternative is available if a taxpayer...

What alternative is available to the taxpayer in the event that the taxpayer reflects a lower taxabl...


Read More

Received by of accrued to News

[FAQ] Incentives in the form of gift cards

An employee receives incentives in the form of gift cards through the employer. Are these incentives...


Read More

Capital Nature News

[FAQ] Distributions received from a Trust

Trust Z is a registered Non Profit Organisation (NPO) and is also the main shareholder of Company K....


Read More

Residents vs non residents News

[FAQ] Is a South African resident who lives in the...

My client has lived in the UK for several years now. He received a directive from SARS for relief fr...


Read More

Exempt taxpayers News

Public Benefit Organisations and the special tax d...

The Minister of Finance recognised that, while South Africa is in a state of crisis, the tax system...


Read More

BPR 348 - Income tax consequences for a public ben...

This ruling determines the income tax consequences for a public benefit organisation resulting from...


Read More

International Tax News

[FAQ] The tax implication of a foreign branch

A taxpayer (SA retail company) opened a branch in the United States of America (USA). The branch wil...


Read More

Interpretation Note 87 (Issue 3) - Headquarter Com...

This Note provides guidance and clarity on the interpretation and application of section 9I which de...


Read More

Tax Administration News

[FAQ] VAT and PAYE registration of a sole propriet...

A taxpayer owns a supermarket as a sole proprietor – he and his wife are married in community of pro...


Read More

[FAQ] Documentation necessary to prove the base co...

A taxpayer acquired assets a while ago however he does not possess invoices to prove the amount. Are...


Read More

[FAQ] A payment arrangement during existing VAT di...

A VAT vendor has a substantial amount of VAT outstanding. He wishes to make a payment arrangement wi...


Read More

VAT News

[FAQ] VAT registration and output tax after a tend...

A taxpayer was awarded a tender. The taxpayer registered for VAT in March 2021. At the time of regis...


Read More

[FAQ] Input tax on the acquisition of courtesy mot...

A taxpayer operates an auto body repair shop. He purchased vehicles under lease agreements. Is there...


Read More

[FAQ] Input tax on capital equipment acquired befo...

A company registered in 2016 and bought capital equipment. The equipment was fully written-off for i...


Read More

Payroll News

[FAQ] Employment Tax Incentive and connected perso...

Would a taxpayer be eligible to register his son under the business ETI or is he considered to be a...


Read More

INCREASED ACCESS TO COVID-19 TERS BENEFITS

UIF TERS benefits offer relief to employers who are not able to pay employees during the lockdown pe...


Read More

Covid-19 TERS Q&A with UIF Commissioner

The Tax Faculty hosted a TERS benefit Q&A webinar on 15 May 2020 during which a panel, consisting of...


Read More

Administration of Estates News

Groundbreaking case law impacting estate planning

A number of groundbreaking cases have recently been decided (during the latter part of 2020) and are...


Read More

[FAQ] The registration and tax consequences of a d...

A completely new taxpayer, referred to as the estate of the deceased person, see section 9HA and sec...


Read More

Estate Duty living annuities

Posted by: SAIT Technical


Read More

Customs and Excise News

[FAQ] Surety upon the submission of an amendment t...

A taxpayer, who is a wine merchant, is registered for a bonded warehouse. The operations moved from...


Read More

[FAQ] Rebates and refunds of the fuel and road acc...

A taxpayer operated a coal mine on behalf of the mining right owner. The taxpayer has been denied a...


Read More

[FAQ] Historical Customs VAT on goods imported

A taxpayer employed a new bookkeeper who discovered that the previous bookkeeper did not claim custo...


Read More

Tax Update News

The 2020 Tax Amendments

The National Treasury recently published a number of bills that contain the amendments to the tax la...


Read More

SARS Dispute Resolution News

Dispute resolution - Is it time to settle?

The settlement of a tax dispute is available to taxpayers in respect of which an assessment has been...


Read More

Legislation News

Determination of the daily amount in respect of me...

DETERMINATION OF THE DAILY AMOUNT IN RESPECT OF MEALS AND INCIDENTAL COSTS FOR PURPOSES OF SECTION 8...


Read More

​Fixing of rate per kilometre in respect of motor...

FIXING OF RATE PER KILOMETRE IN RESPECT OF MOTOR VEHICLES FOR THE PURPOSES OF SECTION 8(1)(b)(ii) AN...


Read More

Binding Private Ruling (BPR) 340 – Share buy-back...

This ruling determines the income tax and donations tax consequences of a share buy-back at nominal...


Read More

Interest News

General rules regarding interest deductibility

In the current environment where there is a huge amount of debt being incurred by taxpayers it is us...


Read More

BGR 53 - Rules for the taxation of interest payabl...

This BGR sets out the rules to avoid double taxation when a deemed accrual of interest occurs under...


Read More

Updated Table of interest rates: Table 3 – Rates a...

Where a loan is obtained by an employee from his or her employer in terms of which no interest is pa...


Read More

Deductions Pre-trade and prepaid expenses News

Did the SCA get this right?

Section 23H of the Income Tax Act is a provision that is designed to spread prepayments made by taxp...


Read More

Wear and tear allowances News

BGR 7 - ​Wear-and-tear or depreciation allowance

This BGR reproduces the parts of Interpretation Note 47 (Issue 5) “Wear-and-Tear or Depreciation All...


Read More

Capital Gains Tax News

[FAQ] The donation of a property by a company to a...

A company wants to transfer this property into a Trust so that the property becomes a protected asse...


Read More

[FAQ] Capital gains tax where payment is received...

A taxpayer resigned as a beneficiary of a trust, and as part of the agreement, “sold” her use of the...


Read More

[FAQ] Capital Gains Tax on the sale of shares

A taxpayer is a South African citizen. He is a shareholder of a company in the UK, along with 10 oth...


Read More

Roll-Overs News

BPR 347 - When the temporary setting aside of volu...

This ruling determines whether the setting aside of a voluntary liquidation, by order of court, woul...


Read More

Dividends Tax, STT & Return of Capital: Taxation of dividends News

Goodbye to the “loop structure” prohibition

In its typical form, a so-called “loop structure” arises where a South African exchange control resi...


Read More

Definition of “dividends”

A South African company issued preference shares to its holding company in order to obtain cashflow...


Read More

Dividends Tax, STT & Return of Capital: Securities transfer tax News

BCR070 - ​Recipients of shares in an “unbundled” c...

This ruling determines tax consequences for the recipients of listed shares in a company, following...


Read More

BCR 071 - Transfer of portfolio investments by for...

This ruling determines securities transfer tax implications of the transfer of JSE listed shares by...


Read More

Trusts News

[FAQ] Trust property and the resulting loan accoun...

A trust owns a property which was built by the trustee for use as a primary residence. There is a tr...


Read More

BCR 072 - ​Deductibility of employment related exp...

This ruling determines the deductibility of contributions by employer companies(class members) to fu...


Read More

Trusts

Taxation of Trusts is an area that is often poorly understood. For many years, this did not negative...


Read More

Trust types and income allocations News

Guide to the Taxation of Special Trusts (Issue 3)

The purpose of this guide is to assist users in gaining a more in-depth understanding of the taxatio...


Read More

Trust Income / Gain Allocations News

BPR 350 – Vesting of a capital gain in a trust ben...

This ruling determines the tax consequences of the vesting of a capital gain in a beneficiary, where...


Read More

Nature of the rights of beneficiaries News

The tax implications of medical expenses paid by a...

The trust, special trust or otherwise, cannot make a deduction of the medical expenditure incurred o...


Read More

Tax implications of loans to trusts News

Amendment to section 7C: Beware of preference divi...

With the introduction of section 7C, the interest saving arising on interest-free or low interest ra...


Read More

[FAQ] A loan by a natural person, or a connected p...

Trust A is a 100% shareholder of Company B. Trust C has a debit loan with Company B (no interest is...


Read More

Capital Gains Tax Implications of Trusts News

Tax implications of terminating a trust

A trust is terminated by the Master after all the trust property was vested and distributed to the b...


Read More

Income Tax Consequenses of Donations News

​Deduction of donations made by employees to Solid...

In order to encourage donations to the Solidarity fund by employees through employers, the maximum m...


Read More

Deceased Estate News

How should a Deceased Estate be administered?

The administration of a deceased estate entails a regulatory process overseen by the Master of the H...


Read More

Deceased estates - tax returns

Posted by: SAIT Technical


Read More

Estate Duty News

Estate duty dodge is just silly

Posted by: SAIT Technical


Read More

Contextualizing Provisional Tax News

[FAQ] First provisional tax consequences for a tax...

A taxpayer is working as a nurse on a cruise liner. Her taxable income for the 2019 year of assessme...


Read More

[FAQ] Provisional Tax

A taxpayer has a basic amount of zero. The taxpayer’s current year of assessment (2021) has a profit...


Read More

Penalties and interest News

Exposure to penalties while in an assessed loss po...

Taxpayers who find themselves in a loss-making position often intuitively assume that as long as the...


Read More

Company Formations News

BGR 54 - Unbundling of unlisted company: Impact of...

This BGR provides clarity on what constitutes an unbundling transaction when an unbundling company h...


Read More

Asset-for-share transactions News

The mechanics of asset-for-share transactions

Section 42 of the Income Tax Act provides roll-over relief for asset-for-share transactions. Taxpaye...


Read More

Asset-for-share transactions followed by an unbund...

This binding private ruling is published with the consent of the applicant(s) to whichit has been is...


Read More

Intra-group transactions News

Tax implications resulting from the elimination of...

This ruling determines the income tax and dividends tax consequences of the redemption of intra-grou...


Read More

Unbundling transactions News

Unbundling Transactions: Latest Amendments

The Taxation Laws Amendment Bill, 2020 was passed by the National Assembly on 17 November. One of th...


Read More

Binding Class Ruling 070: Recipients of shares in...

This binding class ruling is published with the consent of the applicant(s) to which it has been iss...


Read More

Liquidations, winding-up and deregistration News

Restructuring and business rescue options availabl...

When a company enters a phase of financial distress, the board of directors must meet on a regular b...


Read More

Collective Investment Schemes News

Binding Private Ruling 344 - Transfer of listed fi...

This ruling determines tax consequences of a transfer of listed financial instruments to collective...


Read More

REIT Distributions News

BPR 349 – Acquisition of equity shares in non-resi...

This ruling determines the income tax and dividends tax consequences of property income distribution...


Read More

Accounting for VAT News

[FAQ] Basis of registration as a VAT vendor

A taxpayer is experiencing long delays in receiving payment from clients, especially government depa...


Read More

Deferred tax assets and deferred tax on equity News

Deferred tax assets for tax losses

Entities that have tax losses are likely to find themselves in a position where they have to conside...


Read More

Tax Administration Part 2B: Resolving Problems with SARS using the Tax Ombud News

[FAQ] What remedies are available to a taxpayer as...

A taxpayer has lodged and objection with SARS. The objection was accepted, but SARS did not comply w...


Read More

[FAQ] Can the Tax Ombud assist with issues regardi...

VAT returns submitted and paid through eFiling reflect on the taxpayer's work page. However, the ret...


Read More

World of Tax News

The journey to advance your tax career

There are three main areas of practice in a tax career, namely SARS compliance, advisory and litigat...


Read More

Case study: Home office expense News

[FAQ] Home office expenses

A company has staff that have been working from home during COVID19. In total, there are 3 working d...


Read More

Debt restructuring and corporate reorganisations full series News

COVID-19 tax considerations

Wearing masks, constantly sanitizing your hands, not walking or sitting too close to others, not bei...


Read More
Need Help ?

Explore Smarty