Tag: PwC

We take great pleasure in presenting the eighth edition of the VAT in Africa Guide – Africa re-emerging. This backdrop of renewal informs our theme and purpose of focusing on the re-emergence of African economies and societies which have been affected by the COVID-19 pandemic. 

As was widely expected, the government did not announce any increase in the VAT rate, although the Minister has stated that the tax rate will need to increase in the future. The proposed amendments affecting VAT are largely technical in nature.

Given the worsening economic realities still facing the Minister of Finance this year, it came as a pleasant surprise that he provided 5.2% adjustments to the individual tax brackets and rebates, resulting in real personal income tax relief for the already stretched individual taxpayers. 

Public sector staff expands and retail jobs disappoint. Statistics South Africa (Stats SA) reported on that South Africa’s unemployment rate was unchanged at 29.1% during the fourth quarter of 2019. With this reading, South Africa has the fourth-highest unemployment rate out of 182 countries tracked by Trading Economics, after Namibia, Bosnia & Herzegovina and Angola.

SA’s top companies are starting to embrace the concept of fair and responsible remuneration, and some have even adopted and disclosed a living wage that goes beyond the national minimum wage.

According to QuickBooks, there are already more than 700 apps that are assisting accountants to automate processes and reduce their workload. Gone are the days where accountants can be mere number crunchers, who collate and check data and allocate it to the correct cost centre. The future accountant will have transformed her/himself into a financial advisor, adding value to businesses by offering strategic advice, consulting and financial planning.

South African multinationals achieved a victory recently when the Dutch Supreme Court held that South African parent companies could, effectively, be exempt from Dutch withholding tax on dividends.

All eyes are on newly appointed Finance Minister Tito Mboweni’s first Medium Term Budget Policy Statement (MTBPS), scheduled to be delivered to Parliament on 24 October. Just two weeks into his tenure, Minister Mboweni will face the task of affirming government’s commitment to fiscal consolidation and strategic investment in the face of low economic growth.

Statistics from globally recognised organisations and research institutions – PwC, Harvard & McKinsey – have found that the market for women is continuing to grow at an exponential rate while innovating to this segment still isn’t meeting its unique requirements.

President Cyril Ramaphosa will deliver his maiden State of the Nation Address (SONA) on 16 February 2018. The annual speech kicks off the Parliamentary year and focuses on the country’s current political and economic situation. Regarding the latter, South Africa experienced deteriorating economic conditions during 2014-2017, and there is great hope for an improvement in economic growth during 2018 under the new administration.