RSM South Africa

Tax insights

Trusts and Interest Free Loans - Important Legislative Amendments

11 January 2017
In our previous article related to this topic, we highlighted proposed new tax laws that would apply to low or interest free loans made to a trust. Those proposed laws were subject to public comment and, as a result, National Treasury has made substantial revisions to the proposals to be introduced as Section 7C of the Income Tax Act.

Amendments to Deceased Estates

19 December 2016
After recent amendments in the legislation, it has been announced that there will be certain changes in the tax treatment of a Deceased Person and the Deceased Estate.

Section 12H Proposed Amendments

21 November 2016
While boasting the second largest economy in Africa, we as South African citizens cannot hide from the reality of our unequal society. With unemployment hovering around the 25% mark and not being aided by a volatile economy, much has been made of the private sector’s role in uplifting and “saving” the economy.

The Fundamental Difference Between Section 6quat(1) and 6quat(1C) of the Income Tax Act

13 October 2016
Globalisation and foreign trade has been a most relevant and complex issue within the finance world since the dawn of technology. A great deal of services are being provided by South African companies to foreign companies which inherently has brought with it a risk of exposure to double taxation.

Withholding Tax on Interest

6 September 2016
Should withholding tax on interest (WTI) be deducted from a distribution of interest income to a non-resident beneficiary of a South African discretionary trust?

Trusts and interest free loans

19 July 2016
The 2016 Budget Speech contained a proposal to introduce new tax laws targeted at the prevention of estate duty and donations tax avoidance by making use of interest free loans to a trust. National Treasury recently released the Draft Taxation Laws Amendment Bill that contains the measures intended to give effect to the proposal.

Non-Executive Director and His Home Office

17 June 2016
If you are appointed on a board of directors as a non-executive director, it pays to think twice before you claim any expenses you believe are incurred in the production of your income.

Changes to the Permanent Establishment Definition

8 June 2016
Business profits of a foreign enterprise are taxable in a State only to the extent that the foreign enterprise has a Permanent Establishment (PE) in that state. The definition of a PE in tax treaties is therefore critical in determining if the profits of a non-resident will be taxable in another State.

VAT Registrations - Not as easy as 1, 2, 3

6 May 2016
We as a firm have recently seen an influx of new companies registering with the Companies and Intellectual Property Commission (“the CIPC”). This is good news as it means that South Africa is seen as a viable investment platform for both foreign and local investors and businesses.

Special Voluntary Disclosure Programme

3 May 2016
The time has come! From 2017 there will be an automatic exchange of information between tax authorities. This means that the tax authority in Mauritius will have to inform the tax authority in South Africa (SARS) about that interest you have earned in your Mauritian bank account.

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