*
*
*

Welcome

PKF Cape Town

2019

2019

News

Search

2019

23 07 2019

THE INCOME TAX IMPLICATIONS OF DEBT WRITE-OFFS

Where a creditor and a debtor enter into an arrangement whereby debt is cancelled or waived, such an arrangement is a concession or compromise as defined in the Income Tax Act. A concession or compromise is a debt benefit which carries income tax consequences.

23 07 2019

WITHDRAWALS FROM RETIREMENT ANNUITY FUNDS, PRESERVATION PENSION FUNDS AND PRESERVATION PROVIDENT FUNDS UPON EMIGRATION

Prior to the change in tax legislation effective from 1 March 2020, South African tax residents who are employed outside of South Africa were (subject to certain criteria) exempt from South African tax on their foreign earnings.

23 07 2019

VAT ON ELECTRONIC SERVICES PROVIDED BY A FOREIGN GROUP OF COMPANIES

The VAT Act provides that VAT is levied on important services. Of late the focus has been on electronic services provided by non-residents to residents. Examples of these electronic services will be the provision of cloud computing as well as online services.

17 05 2019

DIVIDENDS VERSUS RETURNS OF CAPITAL MADE BY COMPANIES

Not all distributions made by companies to their shareholders constitute dividends for purposes of the Income Tax Act No. 58 of 1962. To the extent that a distribution made by a company reduces the “contributed tax capital” (a concept defined with reference to inter alia the subscription consideration received by the company on the issue of shares) of a company, such would may give rise to a “return of capital” as opposed to a dividend.

17 05 2019

EXPECTING EXPAT TAX

All South African tax residents working abroad should be considering whether they may be impacted by tax law changes which will enter into force on 1 March 2020.

17 05 2019

REPORTABLE ARRANGEMENTS: EXPANSION OF LISTED REPORTABLE ARRANGEMENTS

Section 35 of the Tax Administration Act No. 28 of 2011 (“the TAA”) sets out the circumstances in which an arrangement would constitute a “reportable arrangement”. A “reportable arrangement” does not in itself give rise to a tax liability, but may give rise to the compilation of a cumbersome and onerous report for submission to SARS – the failure of which could give rise to significant penalties.

29 03 2019

RING-FENCING OF ASSESSED LOSSES OF CERTAIN TRADES

Persons are generally allowed to set off any losses incurred in respect of one trade against the income derived from another trade, thereby reducing their overall tax liability.

29 03 2019

FIXED AND REIMBURSIVE TRAVEL ALLOWANCES

When determining the best remuneration package for travelling employees, South African employers and employees are continuously considering the benefits between a travel allowance, a reimbursive travel allowance or both. For this purpose, the employees’ tax (“PAYE’’) and income tax consequences of these two allowances are set out in more detail below.

29 03 2019

REQUESTS FOR SUSPENSION OF PAYMENT FROM SARS

Since its introduction, the “pay now, argue later” rule relating to disputed amounts of tax has been and remains to be the subject of much controversy, and rightfully so.

Get In Touch

For more information on how our services can help your business get in touch.

* *
*