SARS issues media release on tax implications of cryptocurrencies

With the increased interest in cryptocurrency trading in South Africa and globally, National Treasury has been considering the provisions of South Africa tax laws in relation to their application to cryptocurrency trading. The view of government is that cryptocurrencies…

Topics: Tax Law

Tax update: Country-by-Country reporting

In 2013, in order to address the differences in tax systems of multiple countries, the Base Erosion and Profit Shifting (“BEPS”) Action Plan was adopted by the Organisation for Economic Cooperation and Development (“OECD”) and G20 countries, including…

Topics: Commercial & Corporate Law | Tax Law

Sugary Beverages Levy tax: What you need to know

On 1 April 2018, the Sugary Beverages Levy (“SBL”) will be implemented in South Africa as part of the new Health Promotion Levy and will be administered and collected by the South African Revenue Services (“SARS”). The SBL will apply to Sugary Beverages that…

Topics: Health & Pharmaceutical Law | Tax Law

Cryptocurrency transactions

In South Africa, as with most other countries around the world, there is no guidance and regulation regarding cryptocurrencies such as Bitcoin. The Budget Review 2018 (Budget) proposes that the income tax and value-added tax (VAT) legislation be amended to deal…

Topics: Tax Law

Voluntary retrenchment may no longer be an easy sell

The current South African Revenue Service (Sars) IRP3(a) Completion Guide, which aids employers in completing tax directive applications for their employees, appears to introduce a distinction between voluntary and involuntary severance benefits. This apparent…

Topics: Labour Law | Tax Law

Budget 2018 tax highlights

The Minister of Finance, Malusi Gigaba, delivered South Africa’s 2018 Budget speech to Parliament on 21 February 2018. In his speech the Minister noted that there is an expected R48.2 billion revenue shortfall estimate in the 2017/2018 financial year. According…

Topics: Banking & Finance Law | Tax Law | Wills, Estates & Trusts

VAT rate increase: What you need to consider

The Minister of Finance announced in his recent Budget Speech that the VAT rate would be increased from 14% to 15% with effect from 1 April 2018. While the necessary legislative provisions to give effect to the proposed increase are still to be adopted by Parliament,…

Topics: Commercial & Corporate Law | Tax Law

Budget 2018 – Key changes

The 2018 Budget was presented by Minister Malusi Gigaba before parliament on 21 February 2018. The 2018 tax proposals are projected to raise ZAR36 billion. The key changes announced are: An increase in the value-added tax rate from 14% to 15%. A below inflation increase…

Everything you need to know about South African crypto regulation

The South African government is looking into regulating the cryptocurrency industry. Is there anything you need to know about cryptocurrency regulations in South Africa? This article will focus on the South African Reserve Bank’s (SARB) whitepaper issued…

Topics: Banking & Finance Law | Tax Law | Technology Law

Amendments to the taxation of debt restructures

Since 1 January 2013, section 19 of the Income Tax Act, 1962 (the “Act”) and paragraph 12A of the Eighth Schedule to the Act (the “Eighth Schedule”) have determined the tax implications where a debt owing by a taxpayer is cancelled, waived, forgiven or discharged…

Topics: Tax Law

The “PITfalls” identified by SARS’ 2017 Tax Statistics

National Treasury and the South African Revenue Service released the 10th annual edition of the tax statistics for South Africa on 12 December 2017. The document provides data on the key trends in tax revenue collections and highlights the role the tax system plays…

Topics: Tax Law

Fiscal pressure – Tax hikes are not the solution

South Africa suffers from a trifecta of social challenges, namely: inequality, poverty and high levels of unemployment. This, when coupled with the state of economic stagflation, rampant government expenditure and bureaucratic paralysis is creating unprecedented…

Topics: Tax Law

FICA amendments: What you need to know

What is FICA? FICA is an attempt by South Africa to conform to international standards set by the Financial Action Task Force (FATF) requiring financial and other entities to know the customers they provide services to (i.e. Know-Your-Customer (KYC) or Customer…

Topics: Banking & Finance Law | Tax Law

SARS vs Reunert: How a competently drafted contract saved millions

The recent matter of The Commissioner for SARS v Reunert Ltd highlights the importance of possessing an intimate understanding of contractual principles when drafting an agreement. In this case, SARS found itself on the losing end of a Supreme Court of Appeal judgment,…

Topics: Contract Law | Tax Law

The Taxation Laws Amendment Bill, 2017: far-reaching changes to debt reduction rules

The new South African Taxation Laws Amendment Bill, 2017 (the “TLAB 2017”) was released following the public consultation process for the Draft Taxation Laws Amendment Bill, 2017 (the “Draft TLAB 2017”). While some of the changes in the TLAB 2017 following…

Topics: Tax Law

National Treasury shows some flexibility on share buy-back rules (but not a lot)

The Taxation Laws Amendment Bill (TLAB), released on 25 October 2017, proposes measures intended to target certain share buy-back and dividend stripping arrangements. Exempt dividends which are “extraordinary dividends” received or accrued …

Topics: Tax Law

Understatement penalties for gross negligence

The Tax Court handed down judgement on 18 August 2017 in the case of ABC Proprietary Limited v C: SARS. The case primarily deals with understatement penalties in respect of both Value-Added Tax (VAT) and income tax defaults, in terms of section 222(1) the Tax Administration…

Topics: Commercial & Corporate Law | Dispute Resolution | Tax Law

A win for the mining industry: The High Court’s recent decision regarding the calculation of a royalty

In the recently decided matter of United Manganese of Kalahari (Proprietary) Limited v Commissioner for the South African Revenue Service (74158/2016) [2017] ZAGPPHC 628 (3 October 2017), United Manganese of Kalahari (Proprietary) Limited (UMK) applied to …

Topics: Dispute Resolution | Mining Law | Tax Law

National Treasury reconsiders its repeal of the exemption on foreign earned employment income

In the 2017 Draft Taxation Laws Amendment Bill (TLAB) National Treasury (Treasury) proposed that the foreign employment income exemption contained in section 10(1)(o)(ii) of the Income Tax Act, 1962 (the Act) be repealed on the basis that the current exemption…

Topics: Tax Law

Dividends tax: The importance of determining when a dividend is “due and payable

Section 64E(1) of the South African Income Tax Act, 1962 (the “Act”) provides that dividends tax must be levied at a rate of 20% of the amount of any dividend paid by any company, other than a headquarter company. In terms of section 64EA(a) of the Act, the beneficial…

Topics: Commercial & Corporate Law | Tax Law

Tax Law

SARS issues media release on tax implications of cryptocurrencies

Tax update: Country-by-Country reporting

Sugary Beverages Levy tax: What you need to know

Cryptocurrency transactions

Voluntary retrenchment may no longer be an easy sell

Budget 2018 tax highlights

VAT rate increase: What you need to consider

Everything you need to know about South African crypto regulation

The “PITfalls” identified by SARS’ 2017 Tax Statistics

Fiscal pressure – Tax hikes are not the solution

FICA amendments: What you need to know

SARS vs Reunert: How a competently drafted contract saved millions

The Taxation Laws Amendment Bill, 2017: far-reaching changes to debt reduction rules

Understatement penalties for gross negligence

A win for the mining industry: The High Court’s recent decision regarding the calculation of a royalty

National Treasury reconsiders its repeal of the exemption on foreign earned employment income

Dividends tax: The importance of determining when a dividend is “due and payable

Contact Form

Press Office Form

Details of your business

Contact details

Company contact person