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2019 - 27 08 2019
The Carbon Tax Act came into force on 1 June 2019. The first tax returns and payments for effected tax payers will be due July 2020. This return would cover the period 1 June 2019 to 31 December 2019; subsequent periods will run from 1 January to 31 December. Form DA180 would need to be submitted in respect of each licensed emission generation facility.
2019 - 22 07 2019
The VAT Act provides that VAT be levied on imported 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.
The South African VAT system is destination-based. This means that VAT is levied on the consumption of goods and services within the borders of South Africa. It follows then that goods and services supplied by VAT vendors where consumption takes place outside of South Africa and where benefit is enjoyed outside South Africa, is subject to VAT at a rate of zero per cent.
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.
2019 - 05 06 2019
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. From 1 March 2019 the maximum exemption from tax has been limited to the first R1M in taxable income.
2019 - 01 05 2019
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.
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.
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.
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
The PKF team have been hard at work producing the 2019/2020 Tax Guide.
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