Tag: double taxation

South Africa’s tax base continues to evolve in striking ways. Recent South African Revenue Service (SARS) figures show a growing trend. The number of individuals registered for tax increased from 25.9 million in 2023 to 27.1 million in 2024. Yet, only 7.6 million of these individuals were expected to file a return.

In an exciting recent development, National Treasury published a set of draft Tax and Revenue Law Amendment Bills, together with accompanying Explanatory Memorandums thereto, for public comment. These draft bills contained a host of robust proposed changes to tighten certain loopholes and inconsistencies in South Africa’s tax laws.

In the fast-paced world of startups, particularly those breaking new ground, the excitement of innovation and market disruption often takes centre stage. However, amidst this buzz, it's crucial for startups to prioritise their foundational business structures from the outset.

Twenty-one African countries have already enacted rules for non-resident suppliers to account for Value-Added Tax (VAT) / Goods and Sales Tax on electronically supplied services. The digital economy is more than just technology and the internet.

Taxes are never pleasant, but they can do a lot of good if used in the right way, such as providing access to education and healthcare for the poor through vouchers. Taxes can also do a lot of harm by dissuading savings and investments, which ultimately leads to less jobs and a reduced ability for people to take care of their own needs. This is especially the case when it comes to dividend withholding tax and personal income tax.

South African residents who work for international companies inside South Africa need to be sure they have a clear understanding of their tax situation or risk losing out. A growing number of South Africans are electing to work abroad, but there is also a substantial group that is working here for foreign companies.