January 18, 2024

The Financial Costs and Benefits of Solar Power

The shift towards renewable energy in South Africa has seen a significant rise in the adoption of solar power. While the benefits of solar energy, such as sustainability and long-term cost savings, are well-known, it’s important to also consider the hidden costs and challenges associated with solar power systems. This balanced analysis aims to provide a comprehensive view of solar power financing, highlighting both the advantages and the often-overlooked aspects. Advantages of solar power Reduced electricity bills: The primary advantage of solar power is the potential for substantial savings on electricity bills. As Eskom tariffs continue to rise, solar technology becomes […]
January 18, 2024

Overcome Your Shopping Addiction

Shopaholism, or compulsive shopping, is a behavioural issue that has become increasingly prevalent in the era of easy online shopping access. While it may seem harmless initially, shopaholism can quickly escalate, significantly affecting an individual’s life in various negative ways. Can shopaholism be considered a real addiction? Shopaholism or compulsive shopping is recognised as a behavioural addiction. It shares many characteristics with other addictive behaviours, such as an inability to control the behaviour, continuing the behaviour despite negative consequences, and experiencing withdrawal symptoms when attempting to stop. The negative impacts of shopaholism Shopaholism often leads to severe financial instability as […]
January 18, 2024

From Departure to Encashment

How the two-pot retirement system impacts expats The much-anticipated two-pot retirement system, introduced as a ‘knight in shining armour’ for South Africans, has received a new implementation date of March 2024. Expats are cautioned to pay attention to the effects that this will have on the encashment of their retirement savings. While many have addressed the two-pot system and its possible effects on South African residents, very little has been outlined regarding the practical impacts this system will have on South Africans who have ceased their tax residency—the expats. A brief recap Expats have faced quite some challenges with encashing […]
January 18, 2024

It’s bonus time – but oh, the tax!

Unfortunately, it seems that The Grinch now works for SARS! How did the Grinch steal Christmas? In the beloved children’s story written in 1957 by Theodor Geisel, better known as ‘Dr Seuss’, we are introduced to this grouchy, solitary creature, the Grinch, who tries to cancel Christmas by stealing Christmas gifts and decorations from the homes of the nearby town of Whoville on Christmas Eve. In the book, the Grinch realises that Christmas is not all about money or presents. Unfortunately, for the Grinches that work for SARS, it seems that Christmas is all about tax—especially when it comes to […]
January 18, 2024

Don’t lose that tax loss!

Sustaining losses on certain activities, blissfully assuming that SARS will chip in at year-end? Make sure that this loss is not ‘lost’ forever. Many people have invested in second properties based on the knowledge that, for the first few years at least, they would have to fund the shortfall until such time as the rents escalated to a level whereby a profit would be shown. In fact, given the massive increase in property prices over the past 20 years, many such investors didn’t even care that they were losing money on a monthly basis, since the capital gains would more […]
January 18, 2024

General principles for tax deductions

When can you deduct an expense?  Section 11(a) contains the general principles One of the most-asked tax questions goes along the lines of “can I deduct xxx against my income?” There are two ways to answer this type of question. One is to create a never-ending list of every type of deduction one could contemplate, together with its exceptions, circumstances under which such expense cannot be deducted, and so forth. The other is to explain the general principles that apply to claiming a particular expense as a deduction. However, before one even gets down to the criteria for deductibility, there […]
October 31, 2023

When performance fees punish

Six nasty hidden pitfalls that hammer your investments PERFORMANCE FEES are becoming an increasingly popular method of charging among asset managers—but there are nasty hidden pitfalls in calculations that can cost investors dearly. A growing number of asset management companies are turning to performance fees as an alternative to fees as a percentage of assets under management.  The latter can be a lucrative and easy way for investment professionals to make loads of money for doing very little to outpace the market. While 2% of an investment may seem like a small figure to pay for the services of a […]
October 31, 2023

The requirements for a registered office of a company

One aspect that is often not considered in great detail during the formation and registration of a juristic person in South Africa is its registered office, also often referred to as its registered address. Parties often opt to use a convenient location as a company’s registered address and do not give it sufficient consideration when registering a company or when moving a company from one location to another. This article will briefly consider the legal requirements relating to a company’s registered office. The Companies and Intellectual Property Commission (CIPC) has done a great deal to streamline the processes which it […]
October 31, 2023

Avoid unnecessary costs abroad: Say no to dynamic currency conversion

Although exchange rates can make traveling abroad expensive, it’s possible to minimise extra costs for the sake of convenience. A significant aspect of travel is the excitement of exploring the unfamiliar, such as a new environment, customs, or food. However, when making payments overseas, many people prefer using their domestic currency to feel more at ease. This preference has become a widespread and costly practice for travellers using ATMs or making electronic payments at stores and eateries. For instance, a foreign patron might be presented with an option to pay in their native currency instead of the local one when […]
October 19, 2023

When to register your business for VAT

There’s a compulsory threshold, but there may be advantages to voluntary registration. Value-added Tax (VAT) registration is a crucial obligation for businesses operating in South Africa. Knowing when to register for VAT is essential to comply with tax laws and avoid penalties. This article discusses the circumstances under which businesses must register for VAT in South Africa, the registration process, and the benefits and responsibilities that come with VAT registration. When you are required to register for VAT: Businesses are required to register their taxable supplies with SARS as a VAT vendor, which include both goods and services that exceed […]
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