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2019 - 21 02 2019
On 20 February 2019, Tito Mboweni, Finance Minister delivered his 2019 Budget Speech. Hereby a short summary of some of the significant points and proposals for the 2019 Budget as tabled by the Minister of Finance:
2019 - 20 02 2019
2019 - 01 02 2019
2019 - 18 01 2019
A Binding Private Ruling (BPR) 307 was issued by the South African Revenue Service on 4 July 2018 which deals with the application of DTA relief in respect of the double taxation of interest.
Section 12B(1) and (2) of the Income Tax Act provides for a 50/30/20 income tax deduction in respect of certain machinery or plant owned by the taxpayer and which was or is brought into use for the first time by that taxpayer, for the purpose of his or her trade to be used by that taxpayer in the generation of electricity from, amongst others, photovoltaic solar energy (both for energy of more than 1 megawatt and energy not exceeding 1 megawatt) or concentrated solar energy. The tax deduction also applies to any improvements to the qualifying plant or machinery which is not repairs.
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.
The Supreme Court of Appeal (SCA) handed down an important judgement on 9 November 2018 in the case of Sasol Oil v CSARS (923/2017)  ZASCA 153 which deals with simulated transactions and anti-avoidance schemes.
2018 - 14 10 2018
Section 24C was included in the Income Tax Act as a relief measure to taxpayers.
It is to deal with a situation where an anomaly would arise when income is received in one year and expenditure is incurred in the subsequent year. Absent section 24C, the income would be fully taxable in the year received without any deduction for future expenditure.
On 11 May 2018, the South African Revenue Service (“SARS”) published, by Government Gazette; “Incidences of non-compliance by a person in terms of Section 210(2) of the Tax Administration Act, 2011 (Act no. 28 of 2011) that are subject to a fixed amount penalty in accordance with Sections 210(1) and 211 of the Act.”
Treasury is incentivising South African taxpayers to invest in the local economy, via a tax deduction on the investment amount, provided the investment is structured through an approved section 12J Venture Capital Company (“VCC”).
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