South African value-added tax (VAT) vendors are often unsure of the tax consequences of issuing invoices to foreign customers or clients and whether such services should be invoiced at the standard rate of 15% or be zero-rated. As is generally
Tax implications of the variation of employment contracts
On 6 November 2018, the South African Revenue Service (“SARS”) issued a binding private ruling (“BPR 312”) in accordance with sections 78(1) and 87(2) of the Tax Administration Act.[1] This ruling set out the tax implications of varying employment contracts.
The timing of business financing
Sufficient cash flows to enable a business to function at optimal levels during a financial cycle is paramount. Whether you have a seasonal business, are anticipating higher sale volumes during holidays or when you need just a little bit of
New filing requirements for insolvent taxpayers
The South African Revenue Service (“SARS”) has recently set out new procedures relating to the process around the filing of income tax returns relating to insolvency. The default position is that where the estate of a person is sequestrated, a
Admin penalties for outstanding Corporate Income Tax Returns
In general, all registered companies must submit corporate income tax (“CIT”) returns within 12 months of the end of the company’s financial year-end. This is applicable to all companies that are resident in South Africa, that receive source income in
Simulation
In addition to specific anti-avoidance provisions and the general anti-avoidance provisions (GAAR) in the Income Tax Act,[1] the South African Revenue Service can apply another established principle to attack the validity of transactions and arrangements, namely the common law doctrine
Non-resident sellers of immovable property
Section 35A of the Income Tax Act[1] came into effect on 1 September 2007 and sets out the capital gains tax consequences of the sale of immovable property situated in South Africa in instances where the seller is not a
Form requirements for objections
Dispute resolution with the South African Revenue Service (SARS) generally has a two-pronged approach. Firstly, taxpayers must present their case on the merits – this will include the factual basis and background that has led to the dispute. Secondly, and equally
The Public Audit Amendment Act: Groundbreaking for South Africa if properly implemented
On 21 November 2018, the 2017/2018 consolidated national and provincial audit outcomes report was released, which indicated a discouraging fourth consecutive year of regressive compliance with laws and regulations. Fittingly, the long-awaited Public Audit Amendment Act, Act 5 of 2018
2018: A year in tax
As 2018 has come to an end, we reflect on some of the significant highlights (and lowlights) of the 2018 tax year. Davis Tax Committee concludes its work The Davis Tax Committee (DTC) was appointed by the Minister of Finance