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News

3 ways to maximise your retirement savings

Retirment

Maximising your contributions or making a lump sum payment towards your pension, provident or retirement annuity is the most efficient way to minimise the impact of rising taxes while building long term capital, says Regard Budler, head of product solutions at Momentum Corporate. Not only will you soften the blow to your net worth, but…

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Not the worst roll of the dice

Income Tax

The much-awaited maiden budget by Finance Minister Tito Mboweni has come and gone, and actually, it was not all doom and gloom. Maybe Mboweni understood the mood of the country when he decided to introduce lower tax increases on alcohol and tobacco this year, and although there are now three layers in the fuel levy…

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What’s next for tax-free savings accounts?

Tax Free

Almost four years have passed since National Treasury introduced tax-free savings accounts (TFSAs) to improve South Africa’s dismal savings rate. The accounts provide a tax-free wrapper that investors can use for investments in various asset classes by opening accounts with banks, asset managers, life insurers and stockbrokers. Currently, individuals can invest up to R33 000…

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Caution needed about the hype around ‘pervasive profit shifting’

pervasive profit shifting

A recent study on the role of large foreign multinational companies in shifting profits from South Africa to ‘tax havens’ has been welcomed, but also criticised. According to the research done on behalf of the Southern African – Towards Inclusive Economic Development (SA-TIED) programme, tax haven-owned firms are 80% less profitable than their non-haven-owned counterparts….

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SA tax penalties on companies

Tax Penalties

On 14 December 2018, the public notice that allows the South African Revenue Service (“SARS”) to impose penalties on companies for not submitting income tax returns was gazette. This is a new addition to the legion of penalties already faced by companies and permits the imposition of a monthly penalty on a company ranging from…

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New e-services regulations: widening invisible VAT net

e-services regulations

In response to the ever-increasing world of e-commerce and cross-border digital trade, South Africa introduced legislation with effect from 1 June 2014 which requires foreign suppliers of e-services to register as value added tax (VAT) vendors. The National Treasury stated at the time that the amendment did not impose a new tax, but merely shifted…

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VAT on commercial and residential accommodation: Lodging, leasing or renting?

Rental Agreements

The Value-Added Tax Act, No 89 of 1991 (VAT Act) contemplates the supply of two types of residential accommodation, ie the supply of commercial accommodation and dwellings. The distinction between commercial accommodation and a dwelling is essential, because the supply of commercial accommodation is subject to VAT at the standard rate, whereas the letting and…

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