May 12, 2022

PAYE and non-residents

Employment income is generally taxed where the services are physically exercised. The place of contract conclusion, where the employer is based and where the remuneration is paid is irrelevant in determining the taxation of employment income. This principle is supported by South African legislation and case law. Income earned from South African employers for services rendered in South Africa will be subject to South African employees’ tax. Employees’ tax refers to the amount of money that an employer who is a resident in South Africa deducts (or withholds) from an employee’s remuneration each month, which it pays over to SARS […]
January 17, 2019


In general, all registered companies must submit corporate income tax (“CIT”) returns within 12 months of the end of the company’s financial year-end. This is applicable to all companies that are resident in South Africa, that receive source income in South Africa, or that maintain a permanent establishment or a branch in South Africa. On 29 November 2018, the South African Revenue Service (“SARS”) issued a media release confirming that SARS will soon start imposing administrative non-compliance penalties as provided for in Chapter 15 of the Tax Administration Act[1] for outstanding CIT returns. To date, these penalties were only imposed […]
November 16, 2018

Verskillende rentekoerse in belasting

Die Inkomstebelastingwet[1] bevat definisies vir verskillende rentekoerse. Hierdie rentekoerse dien as die basis vir renteberekeninge in inkomstebelasting in verskillende omstandighede en kan breedweg in drie hoofareas gekategoriseer word. Kennis van die verskil tussen hierdie onderskeie tipes rentekoerse kan ’n wesenlike impak hê op die bedrag rente wat deur belastingbetalers verskuldig of ontvangbaar is, asook die wyse waarop hulle transaksies struktureer, beïnvloed. Wat is die verskillende tipes rentekoerse en wanneer is hulle van toepassing? SAID onderskei tans tussen twee “voorgeskrewe tariewe” en ’n sogenaamde “amptelike rentekoers”. Die voorgeskrewe tariewe is administratief van aard en van toepassing op belastingskulde, terwyl die amptelike […]
June 5, 2018


The Income Tax Act[1] allows for various income tax allowances to be claimed in respect of moveable assets used for purposes of a taxpayer’s trade. Most commonly, section 11(e) provides for a deduction equal to the amount by which the value of any machinery, plant, implements, utensils and articles have diminished by reason of wear and tear during the tax year. Typically, these assets must be owned by the taxpayer, or must be in the process of being acquired. Where an asset was acquired during the year, the allowance provided for in section 11(e) is proportionally reduced according to the […]
June 5, 2018


Our clients who earn only a salary will know that very few tax deductions are available against salary income for income tax purposes and whereby they may reduce the taxable income derived ultimately from such remunerations. Section 23(m) of the Income Tax Act[1] provides that none of the deductions ordinarily available to taxpayers in terms of section 11 are allowed against salary income, other than for a limited few. We set out these deductions which are available below: Contributions made by taxpayers to a pension fund, provident fund or retirement annuity fund may be deducted against salary income in accordance […]
April 23, 2018


As deel van die Suid-Afrikaanse Inkomstediens (SAID) se deurlopende pogings om doeltreffendheid en voldoening te bevorder, is verskeie wysigings op 26 Februarie 2018 aan die jaarlikse inkomstebelastingopgawes vir maatskappye (ITR14) aangebring. Twee nuwe skedules is op die ITR14 bygevoeg. Eerstens moet maatskappye wat die leerskaptoelae kragtens artikel 12H van die Inkomstebelastingwet[1] wil eis, voortaan besonderhede van hul geregistreerde leerskappe in ’n afsonderlike skedule verskaf. Kragtens hierdie skedule word afsonderlike besonderhede benodig vir leerders met ’n ongeskiktheid en leerders sonder ’n ongeskiktheid, vir beide NKR vlak 1 tot 6 en NKR vlak 7 tot 10. Verder moet die getal leerders en […]
March 12, 2018


Section 6B of the Income Tax Act[1] provides for an additional medical expenses tax credit (“AMTC”) which is calculated against qualifying “out of pocket” medical expenses. This tax credit reduces the amount of income tax a natural person (hereinafter referred to as the “taxpayer”) is liable to pay. The AMTC is granted in addition to the medical scheme fees tax credit (“MTC”) in respect of fees paid to a registered medical scheme.[2] The AMTC can be claimed by a taxpayer in respect of medical expenses incurred by that individual towards the medical expenses of that taxpayer as well as any […]
February 21, 2018


In die gewone loop van sake word bates wat deur belastingbetalers gebruik word om hul besigheid te bedryf, oor ’n aantal jare in die vorm van rekeningkundige depresiasie afwaarts gewaardeer. Die Inkomstebelastingwet[1] maak dan ook voorsiening daarvoor dat bates oor ’n periode van tyd vir belastingdoeleindes afwaarts waardeer kan word, welke slytasieverwante vermindering in waarde jaarliks as ’n slytasiekorting teen belasbare inkomste geëis kan word. Hierdie kortings word toegestaan kragtens ’n aantal bepalings, afhangende van die relevante aard en die doel waarvoor die betrokke bates gebruik word[2]. Die Inkomstebelastingwet maak voorsiening dat hierdie kortings later omgekeer kan word sou hulle […]
December 5, 2017


The South African Revenue Service (“SARS”) recently issued a binding private ruling (“BPR”)[1] in which the income tax consequences of expenditure in respect of socio-economic development (“SED”) and enterprise development (“ED”) obligations were considered. The applicant in this case is a company that owns and operates a wind farm that generates electricity. In terms of the applicant’s electricity generation agreement and licence entered into with the South African government and the relevant regulator, it must commit a specified percentage of its annual revenue to SED and ED expenditure. Failure to incur these expenses could result in the electricity generation agreement […]
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