Tag: tax deduction

In a significant win for taxpayers on the South African Revenue Service’s (SARS) “narrow” approach to the ability to claim input Value-Added Tax (VAT), the Supreme Court of Appeal (SCA) recently ruled in favour of Woolworths Holdings (Woolworths), the group holding company, affirming its right to claim over R8 million in input VAT.

Payroll processing may not be the most glamorous part of running a business, but without it, a company simply cannot function. Whether your team consists of one employee or a global workforce of thousands, accurate and reliable payroll is what keeps a business running smoothly.

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.

National Treasury is set to address a critical anomaly in the Value-Added Tax Act, No. 89 of 1991 (VAT Act). This anomaly has significant implications for multinational companies with foreign subsidiaries.

Artificial Intelligence (AI) is revolutionising global payroll management, making it more efficient and accurate – not only for businesses but also payroll professionals. AI isn’t replacing payroll professionals; it’s empowering them. The technology acts as a powerful partner, augmenting payroll professionals’ capabilities, enhancing their productivity and allowing them to play a more integral role in the organisation’s success.

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.

If you’re saving for your retirement, both retirement annuities (RAs) and tax-free investments (TFIs) are good investment choices. But which one offers the best tax benefits? The answer depends on your investment goals and unique circumstances. While there are tax benefits associated with both RAs and TFIs, the benefits are structured differently, and the product rules and restrictions are quite distinct.

National Treasury and the South African Revenue Service (SARS) provided important feedback at the recent sitting of the Standing Committee on Finance as part of the parliamentary process regarding the much anticipated two-pot retirement system.

Nobody enjoys paying tax, but since it’s our legal obligation, we may as well make the most of it by legitimately saving where we can. Because tax savings - even if fractional - compounded over prolonged periods of time can contribute significantly to any person’s financial position.

We have all heard the phrase: “It’s not about timing the market, but time in the market.” One of the most important lessons parents can teach their children is the value of money – how to really understand the dynamics around investing and how to make money work for them.