Latest News Articles

Keeping you up to date with the latest Tax news.

Stay informed with our Monthly Newsletter

Sign up here:

Latest News

[FAQ] Foreign income and the applicable tax rate

09 November 2020
Individuals Tax

If a taxpayer is working abroad and has received income in excess of R1.25million, what will the tax...

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

06 November 2020
Accounting & Financial Reporting

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

[FAQ] Incentives in the form of gift cards

05 November 2020

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

[FAQ] Historical Customs VAT on goods imported

04 November 2020
Customs and Excise

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

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

03 November 2020

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

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

02 November 2020
Accounting & Financial Reporting

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

[FAQ] Basis of registration as a VAT vendor

28 October 2020
VAT

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

[FAQ] Home office expenses

21 October 2020
Case study: Home office expense

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

The journey to advance your tax career

21 October 2020

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

Tax implications of terminating a trust

19 October 2020
Capital Gains Tax Implications of Trusts

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

Definition of “dividends”

16 October 2020

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

Review on Customs Tariff applications

11 October 2020
Customs and Excise

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

The mechanics of asset-for-share transactions

06 October 2020

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

Changes to Customs

01 October 2020
Customs and Excise

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

BPR 354 – Cash grants to an employee incentive tru...

01 October 2020
Individuals Tax

While income tax legislation and accounting standards generally operate independently of each other,...

[FAQ] Amounts refunded to employers

28 September 2020
Individuals Tax

A taxpayer was paid a bonus of R525 000. He signed a contract stating that he must meet certain requ...

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

21 September 2020
Tax Administration

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

Relevance of accounting standards to South Africa...

16 September 2020
Corporate Tax

This article considers the relevance of the accounting treatment of transactions for South African t...

BCR 072 - Deductibility of employment related exp...

14 September 2020

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

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

14 September 2020

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

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

14 September 2020
Trust Income / Gain Allocations

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

BPR 353 – Linear adjustment of gross sales of unre...

14 September 2020
Corporate Tax

This ruling determines that a linear adjustment may be made to adjust gross sales of an unrefined mi...

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

14 September 2020

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

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

14 September 2020

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