SA Tax Newsletters - 2021-06-04
Capital Gains Tax: Relief on the Disposal of Small Business Assets
Capital gains tax was introduced in 2001. South African tax residents are liable for capital gains tax on disposal of their worldwide assets. Non-residents are liable for capital gains tax on disposal of their immovable assets situated in South Africa or any assets effectively connected to their permanent establishment in South Africa.
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Offshore assets - SARS issuing letters to affected taxpayers
In February 2021, SARS issued a media release that SARS had received from 87 jurisdictions across the world, information detailing the offshore financial assets of South African taxpayers and that SARS intended to undertake a careful review of the information and audit it, where necessary.
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VAT Deregistration: Know about the VAT Exit Charge
The VAT Act requires persons carrying on an enterprise whose taxable supplies have exceeded or are expected to exceed R1million in a period of 12 months to register for VAT. A person may also voluntarily register if their supplies have exceeded R50 000 or are expected to exceed R50 000 in a 12-month period. A person may opt to voluntarily register for various reasons amongst them to secure the claiming of input VAT.
Read moreSA Tax Newsletters - 2021-04-28
The welcome review of two very important SARS procedures: VDPs and ATRs
A focal point of the 2021 Budget Review relates to the proposed strengthening of SARS. Numerous recommendations made by the Nugent Commission to address governance failures at SARS have, to date, been implemented, including the re-establishment of the Large Business Centre, as well as units within SARS focussing on litigation, compliance and integrity.
Read moreSA Tax Newsletters -2021-04-28
The compromise of tax debt: fact or fable?
In current economic times, some taxpayers may prefer to follow the “head-in-sand” approach when it comes to outstanding tax debts it has no means of paying. Unfortunately, this approach will not make the tax debt go away, but rather give rise to interest being levied in respect thereof.
Read moreSA Tax Newsletters -2021-04-28
Venture Capital Companies: a birds-eye view
The 2008 Budget Review identified the challenges faced by small and medium-sized businesses in accessing equity finance i.e., the acquisition of finance by way of the issue of shares to investors.
Read moreSA Tax Newsletters -2021-04-06
SARS Auto-assessments
SARS recently came up with the new initiative of creating auto-assessments for taxpayers. SARS makes use of data they receive from employers, financial institutions, medical schemes, retirement annuity fund administrators and other 3rd party data providers to create the auto-assessment.
Read moreSA Tax Newsletters -2021-04-06
SARS spotlight focused on Transfer Pricing
With the Minister having recently announced the R3 billion spending allocation towards the enhancement of SARS enforcement with a particular focus on transfer pricing, it is highly probable that we will be seeing more queries and audits in this area.
Read moreSA Tax Newsletters -2021-04-06
Donations Tax Deadline: 31 March
A registered South African trust can be used as a risk management tool. As such it iscommon for a trust to enter into a transaction whereby assets are acquired from a connected person to the trust.
Read moreSA Tax Newsletters -2021-04-06
Rebuilding SARS
It was announced in the 2021/2022 Budget that an additional spending allocation of R3 billion will
be provided to SARS to: