July 12, 2023

Unlocking the benefits of expert tax planning

Tax planning is the strategic organisation of financial affairs to minimise tax liability by utilising deductions, exemptions, allowances, and rebates within the confines of the law. Despite the perceived complexity, tax planning offers streamlined financial management and significant savings. For business owners, it is an ongoing commitment with substantial benefits, going beyond tax payment to optimising tax outcomes. With expert guidance, businesses can navigate tax obligations, seize opportunities, and legally reduce their tax burden. Benefits of Tax Planning Maximising Deductions and Write-offs Through effective tax planning, businesses can identify and leverage the highest possible deductions and write-offs, resulting in a […]
July 12, 2023

Deciphering the dilemma: To sell or not to sell your property amid financial strain

Given the current economic climate, many homeowners in South Africa might find themselves facing the challenge of keeping up with their monthly bond repayments. In such instances, it may be tempting to consider selling the property to relieve financial pressure. However, before you make a hasty decision, it is crucial to understand all the factors involved and seek expert advice. Owning a home is a significant financial commitment and one that needs careful consideration, especially when financial circumstances become strained. A knee-jerk reaction to sell may seem like a straightforward solution, but it’s not always the wisest course of action. […]
July 12, 2023

Deducting income tax and CGT for estate duty

Is subjecting taxpayers to estate duty on post-death asset growth appropriate? IN 1789 Benjamin Franklin said that “in this world nothing can be said to be certain, except death and taxes”. He was right about death—but anyone who has had to interpret our tax laws would know that the task is fraught with uncertainty. This article examines whether income tax (including CGT) can be deducted from the net value of an estate for estate duty purposes. The net value of a deceased estate under the Estate Duty Act 45 of 1955 is equal to the total value of all property […]
June 13, 2023

A dive into South Africa’s revised assessed losses regulations

Navigating the complex world of corporate finance and tax regulations can be challenging for businesses. South Africa has recently undergone significant changes in its tax landscape, including limits on assessed losses and adjustments to corporate income tax rates. To stay informed, adaptable, and compliant, companies must seek expert advice and gain a better understanding of these changes. By doing so, businesses can make informed decisions and effectively navigate the evolving tax environment, ensuring their financial success in the long run. The Recalibrated Landscape of Assessed Loss Tax Limitation The rules for using assessed losses in South Africa have changed. Previously, […]
June 13, 2023

Ways to navigate an interest rate hike in South Africa: The power of expert advice

When the sun is shining, it is the opportune time to fix the roof. This adage is especially true in the context of economic situations, where preparation is key to weathering financial storms. In South Africa, as in many parts of the world, interest rates have seen an upward trend, posing significant implications for personal finance. Whether you carry a mortgage, vehicle finance, a student loan, or any form of debt, an interest rate hike translates into higher debt repayments. But do not despair; with the right strategies and expert advice, managing an interest rate hike can be made more […]
April 13, 2023

Flying towards a tax saving: Double Tax Agreement, or financial emigration?

Having visited over 12 international locations in 2022, and engaging with South African expatriates, we can attest to a recent report issued by the United Nations, which found that around 900 000 South Africans are already living and working overseas—and indeed, this may well be an understatement. The common misconception amongst expatriates, however, is that getting on a plane and leaving South Africa will trigger SARS to automatically regard them as non-resident taxpayers. This is certainly not the case, as the correct process must be followed to cease one’s South African tax residency status.  If not, SARS may audit the misinformed […]
April 13, 2023

What you need to know regarding home office expenses

The way we work on a day-to-day basis changed significantly since the Covid-19 pandemic with many employers adopting a more hybrid working model. This new economic environment and new ways of working created an environment where SARS and taxpayers had to adapt accordingly with new focus on salaried employees working from home to claim certain expenditure from their respective income taxes. With time passing by after the worldwide pandemic SARS again adapted to circumstances and changed legislation that includes changes to home office expenses and the deductibility thereof in future. So what now? Are home office expenses still deductible for […]
March 16, 2023

Maximising your dividend income

You could improve your return by selling the share instead of waiting for the dividend payout—but there are caveats. I was recently asked an interesting question about dividends.  The person concerned was curious as to whether—from a tax and return perspective—it is better to take the dividend itself, or sell the share and take the profit prior to the dividend payout. It is therefore important to understand how the declaration and subsequent payment of a dividend impact the share price, all else being equal. The easiest way to explain how this works is through a real-life example—that of thermal coal […]
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