Tag: Income Tax Act (ITA)
R100 billion fund set to reshape B-BBEE regulation
South Africa stands at a pivotal moment. Two months ago, the Department of Trade, Industry and Competition (DTIC) unveiled a draft Transformation Fund Concept Document. This announcement sparked a bold conversation about the future of Broad-Based Black Economic Empowerment (B-BBEE).
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.
Addressing merger law gaps – improving regulatory clarity
South Africa can promote future investment and encourage corporate growth by addressing discrepancies in laws governing mergers and amalgamations. Section 44 of the Income Tax Act governs merger and amalgamation transactions from a tax perspective. It provides tax rollover relief if certain requirements are met.
Cryptocurrency exchange control regulations
Cryptocurrency traders in South Africa are focused on understanding the tax implications of their transactions. These transactions are relative to the Income Tax Act. This has been challenging, as SARS has only stated that "the normal rules apply." They have not provided authoritative guidance on cryptocurrency-related transactions or when profits are considered capital or income.
Per diem tax guidelines – travel allowance compliance
A per diem (from the Latin for per day) is a daily stipend given to business travellers to cover food and incidental expenses while they’re on the road. It’s not, in fact, a perk to make up for the inconvenience of being away from home – or a little extra spending money to splurge on spoils and souvenirs.
Foreign tax credits and rebates – taxpayer treat or trap?
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.
Constitutional Court judgment on economic substance
To the relief of Coronation Investment Management SA (Coronation), the Constitutional Court has overturned the Supreme Court of Appeal’s (SCA) judgment in favour of the South African Revenue Service (SARS).
Navigating tax deductions – lessons from the Unitrans case
The Gauteng High Court recently dismissed the appeal of Unitrans Holdings (Unitrans) against the Tax Court judgment which had denied a tax deduction for interest incurred. The court found that the interest incurred was not closely connected to Unitrans’ business operations as an investment holding company and that the purpose of the interest was not to produce income but to further the interests of the subsidiaries.
Unpacking onerous adjustments to the apportionment formula
The shortcomings of the Value Added Tax (VAT) apportionment formula set out in 2011, have been addressed in a new formula which applies with effect from all financial years commencing on or after 1 January 2024. We highlight important adjustments to the formula which is laid out new Binding General ruling, BGR 16 (Issue 3).
Tax hurdles for remote workers and digital nomads
South Africa remains a hot spot for remote work. On the one hand, digital nomads and remote workers with foreign employers get to enjoy the South African lifestyle, good weather, and the luxury of earning Dollars and Pounds. On the other, foreign companies benefit from employing skilled South Africans, comparatively cheaper than their foreign counterparts, and without the burden of adhering to South African tax compliance regulations.