Are raising fees similar to interest?
The tax court, in a reportable judgment handed down on 13 January 2025, considered whether raising fees are finance charges which are similar to interest, and therefore, tax-deductible on the same basis as interest.
SARS preying on personal liability – constitutionality confirmed!
The Constitutional Court judgement in Greyvensteyn vs Commissioner for SARS and Others has been welcomed by South African Revenue Service (SARS)! Serving to reaffirm the constitutionality of SARS holding individuals personally liable for company debts, the Greyvensteyn judgement emphasises this point. It also supports SARS pursuing recovery from those persons. The judgement highlights the importance of tax revenue collection
VAT input claims – a costly legal lesson
A recent Supreme Court of Appeal (SCA) ruling should deliver a stark warning to businesses claiming input Value Added Tax (VAT) deductions without a watertight legal foundation. In Aveng Mining Shafts & Underground v CSARS (1192/2023) [2025] ZASCA 20, the SCA sided with South African Revenue Service (SARS) and disallowed almost R17.5 million in VAT input claims.
Proposed VAT increase – strategies for small businesses
In the 2025 Budget Speech, Finance Minister Enoch Godongwana unveiled a proposed staggered increase to the Value Added Tax (VAT) rate. This move, designed to address economic challenges and fund key government initiatives, will undoubtedly add pressure to small businesses, especially those who are already struggling with cash flow. However, it’s worth understanding who pays VAT, how VAT contributes to total tax revenue, and how you as a small business can manage this change.
Tax systems in Africa must be revamped to boost economic growth
A new study found that tax administration in many African countries is inefficient, hindering revenue collection. This points to potential gaps that could be addressed through institutional reforms. Widespread inefficiencies in tax systems in Africa undermine the mobilisation of government resources, limiting their capacity to deliver public services and make essential investments.
Electric vehicle tax incentive – what EV manufacturers should know
Late last year, President Cyril Ramaphosa signed the Taxation Laws Amendment Act No. 42 of 2024. This Act introduced a significant tax incentive. The government aims to promote battery electric and hydrogen-powered vehicle production through this initiative.
2025 Budget Speech raises renewable energy concerns
The 2025 Budget Speech outlines significant opportunities for South Africa’s private renewable energy sector. These opportunities include streamlined public-private partnership (PPP) regulations, expanded infrastructure investment and greater clarity around grid upgrades. However, it also raises important concerns for private developers and investors.
Funding the SABC – the streaming tax debate
The TV licence system is on life support. Less than 20% of South Africans with a licence actually pay. The costs of chasing payments often outweigh the revenue collected. People simply don’t see value in funding a public broadcaster anymore. They have an endless stream of content available elsewhere. That said, the South African Broadcasting Corporation (SABC) still matters.
FICA compliance – key impacts from the 2025 Budget
The 2025 Budget Speech, delivered on 12 March 2025, made it clear that financial crime enforcement and compliance are priorities. The government has allocated increased funding for forensic investigations, regulatory oversight and tax compliance monitoring
2025 GNU budget – prioritising growth in uncertain times
After the false start of 19 February, Finance Minister Enoch Godongwana tabled the 2025 Budget on 12 March. The main tax policy proposals include raising the Value Added Tax (VAT) rate by 0.5% in each of the next two years. This will bring VAT to 16% in 2026/2027. It will be accompanied by no inflationary adjustments to personal income tax brackets, rebates, or medical tax credits.
