Tag: Income Tax Act (ITA)

Many South Africans working from home are asking which home office expenses they can claim as tax deductible items. They also want to know how to claim them correctly. This question is especially relevant for the growing number of South African employees working remotely for global companies. Increasingly, these employees are turning to tax practitioners for guidance regarding home office tax claims.

National Treasury has proposed three major amendments affecting portfolios of Collective Investment Schemes (CISs) in the draft Taxation Laws Amendment Bill, 2025 (TLAB). The National Treasury’s vicious crackdown aims to close several tax loopholes and strengthen compliance within the CIS framework.

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).

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.

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 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.

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.

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.

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).

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.