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[FAQ] The VAT implication of commercial and reside...

A company develops buildings with residential units as well as workspace, coffee shops etc. Is this...


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[FAQ] Shares held as trading stock

A company trades in shares. How will the share value gain be accounted for tax purposes? Would the s...


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[FAQ] Income tax on commission earned

A taxpayer earns an average monthly commission of R30,000 and also has commission related expenses....


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Individuals Tax News

[FAQ] Income tax on commission earned

A taxpayer earns an average monthly commission of R30,000 and also has commission related expenses....


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[FAQ] Travel allowance on a rented vehicle

A taxpayer received a travel allowance under code 3701. He doesn't own a car but rents a car under a...


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Medical aid and retirement annuity payments made o...

A couple is married in community of property. The husband is the main member of the medical aid and...


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Corporate Tax News

[FAQ] Shares held as trading stock

A company trades in shares. How will the share value gain be accounted for tax purposes? Would the s...


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Notice by SARS where financials were prepared for...

A new company prepared annual financial statements for 15 months which included the 3 months of its...


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BCR 075 - Settlement of post-retirement medical a...

This ruling determines the tax consequences for the employers and the qualifying employees due to th...


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VAT periods News

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

Author: Varusha Moodaley


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Further clarification on the VAT registration of n...

Author: Jerome Brink


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Contingency Fees: VAT inclusive or exclusive?

Author: Gerhard Badenhorst


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Tax returns and payments News

Weekly transfer pricing roundup – 19 June 2017

Author: Marcus


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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...


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VAT Output Tax News

[FAQ] The VAT implication of commercial and reside...

A company develops buildings with residential units as well as workspace, coffee shops etc. Is this...


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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...


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VAT Input Tax News

[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...


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[FAQ] Can a registered VAT vendor claim input VAT...

Can a registered VAT vendor claim input VAT on a bus that they purchased to transport employees to a...


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VAT apportionment v direct attribution

The debate between taxpayers and SARS as to what constitutes a fair and appropriate apportionment fo...


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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...


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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...


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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...


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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...


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[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...


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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...


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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...


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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...


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[FAQ] EMP501 Reconciliations

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


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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...


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Travel allowance News

Reimbursive travel allowance

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


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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...


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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...


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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...


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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...


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Inextricably linked contracts? The Constitutional...

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


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

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


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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...


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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.


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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...


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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...


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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...


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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....


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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...


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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...


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

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


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International Tax News

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

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


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OECD delivers international standard for collecti...

Author: OECD


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Tax Administration News

Attempt to curb the adverse effects of unallocated...

The Draft TALAB proposes the provision of specific timeframes within which the SARS can allocate pay...


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No delivery, no pay: Another win for a taxpayer in...

Under the Tax Administration Act 28 of 2011 (TAA), SARS is entitled to collect outstanding tax debt...


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​How to obtain your Tax Clearance Information

As a Small, Micro or Medium Enterprise (SMME), at some point or another you will be required to prov...


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VAT News

[FAQ] Delayed VAT registration and understatement...

A company’s turnover exceeded R1 million for the past 3 financial years but was never registered for...


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[FAQ] The VAT treatment of commission earned in th...

An insurance broker, who does life cover and retirement plans, earns commission exceeding R1million...


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Materiality in VAT disputes

The Tax Court in Johannesburg recently handed down judgment in a dispute between a vendor and SARS i...


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Payroll News

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...


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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...


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Q&A'S COVID19 Temporary Employee/Employer Relief S...

Q&A'S COVID19 Temporary Employee/Employer Relief Scheme (C19 TERS)


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Administration of Estates News

[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...


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Estate Duty living annuities

Posted by: SAIT Technical


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Strike a deal to scrap estate tax

Posted by: SAIT Technical


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Customs and Excise News

[FAQ] Historical Customs VAT on goods imported

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


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Review on Customs Tariff applications

The Cova Customs Team monitors legislative updates and changes to South African and global trade leg...


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Changes to Customs

This article highlights legislative updates and changes to South African and global trade legislatio...


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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...


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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...


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​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...


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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...


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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...


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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...


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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...


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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...


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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...


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

Definition of “dividends”

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


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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...


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

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


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Trusts News

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

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


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Trusts

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


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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...


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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...


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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...


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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...


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[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...


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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...


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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...


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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...


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Deceased estates - tax returns

Posted by: SAIT Technical


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Estate Duty News

Estate duty dodge is just silly

Posted by: SAIT Technical


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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...


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[FAQ] Provisional Tax

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


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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...


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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...


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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...


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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...


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Unbundling transactions News

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...


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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...


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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...


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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...


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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...


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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...


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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...


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[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...


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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...


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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...


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