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Top up your RA to save on tax

The 2022 tax year ends at the end of this month, which is a great time to review your investments and consider taking full advantage of the government incentives that help us save. One of these tax incentives is linked to your retirement annuities (RAs). While a well-invested RA is not only good for your […]

Should you be paying provisional tax?

As we begin the new income tax year, you’ll need to start thinking about preparing for provisional tax payments. Here’s a quick guide about what you need to know:   What is provisional tax?  Different from income tax, provisional tax is a way of paying your income tax liability in advance to ensure you don’t […]

Balancing your business’s losses and taxes

In line with the 2021 Budget Announcement, Government proposes to broaden the corporate income tax base by restricting the offset of the balance of assessed losses carried forward to 80% of taxable income.   The proposal extends to the balance of assessed losses at the time of implementation, i.e. it is not only the accumulation of losses starting […]

Why employers should be careful when using ETI schemes

In a Binding Private Ruling issued on 6 July 2021, SARS has made strict ruling on an Employment Tax Incentive Act (ETI) scheme that has been doing the rounds. It is not often that negative rulings get published and it is therefore a unique situation that should serve as a warning to those participating in […]

When is a deposit included in gross income for tax purposes?

The South African Revenue Service recently published a new Interpretation Note relating to the taxation of deposits. In the ordinary course of business, taxpayers may receive money in advance in the form of deposits related to goods or services to be delivered or rendered at a future date. Having regard to the definition of “gross […]

Refund of Signing Payments to an Employer

It often happens that a person may receive remuneration and other similar amounts (for services rendered or to be rendered, or by virtue of employment or the holding of any office), which subsequently have to be refunded, often because of contractual obligations not having been fulfilled, or due to an overpayment which was previously subject to tax. These amounts […]

How and When Deposits Are Taxed

The South African Revenue Service recently published a new Interpretation Note relating to the taxation of deposits. In the ordinary course of business, taxpayers may receive money in advance in the form of deposits related to goods or services to be delivered or rendered at a future date. Having regard to the definition of “gross income”, […]

The Taxation of Medical Lump-Sums

The South African Revenue Service recently published a draft Interpretation Note relating to the taxation of medical lump sums. Employers often provide various incentives to attract and retain employees with scarce skills. One form of benefit is to cover the medical aid contributions of former employees in retirement. This could be an expensive and risky exercise for a taxpayer […]

Primary Residence Exclusion: Things to Look Out For

The Eighth Schedule of the Income Tax Act, which deals with capital gain tax, allows for exclusion from liability on any gains realised on the sale by a taxpayer of a primary residence on the first R2 million of such gains. There are, however, several more complex matters that often arise in the determination of any gain, and we examine some of those in more […]

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