RSM South Africa

Tax insights

The new Expat Tax on income earned abroad

23 May 2019
Many South African tax residents render services abroad for a period of time during their lives. At present, the Income Tax Act (“the Act”) exempts income received by a South African tax resident, during any year of assessment, if:

Debt relief loopholes

24 April 2019
The Taxation Laws Amendment Bill of 2018 contains amendments that are designed to reduce certain loopholes that previously existed in the debt relief provisions that are contained in Section 19 of the Income Tax Act (“the Act”) and paragraph 12A of the 8th Schedule to the Act (hereinafter referred to as section 19 and paragraph12A).

Religious institutions under the microscope with SARS

15 April 2019
In an effort to improve its revenue collection, the South African Revenue Service (SARS) has established an illicit economy unit that will be re-introduced in April 2019 to strengthen its tax collection process.

New anti avoidance tax rules on the use of foreign trusts

11 April 2019
For some time the government has been concerned by the use of interposed foreign trusts to avoid the taxation on controlled foreign companies (CFC’s). New rules were proposed in 2017, but were subsequently withdrawn due to their wide nature and complexity. The Taxation Laws Amendment Act, 2018 (Act No.

Sugar coated tax

14 March 2019
The 1st of April 2019 marks a year since the introduction of the Health Promotion Levy on sugary beverages, or “sugar tax” levy as it is commonly referred to.

Another tax on its way - The Carbon Tax Bill

11 March 2019
The Paris Agreement, which entered into force on 04 November 2016, is intended to be a comprehensive framework that will provide guidance in the limitation of greenhouse gas emissions and the future challenges that are likely to arise from climate change.

2019 Budget Speech - Tax Update

21 February 2019
Finance Minister Tito Mboweni delivered his maiden Budget Speech on 20 February 2019. This comes at a time when the country is grappling with issues of unemployment, corruption, and distress in State Owned Enterprises.

Section 24C - Allowance in respect of future expenditure

15 February 2019
The tax court recently ruled in the case of ABC (Pty) Ltd v The Commissioner for SARS on the application of section 24C of the Income Tax Act (ITA). The section allows a deduction for future expenditure in relation to any year of assessment by the taxpayer.

Changes to the Donations Tax threshold

22 January 2019
In the 2018 budget speech, the Finance Minister proposed a significant number of changes to address the revenue shortfall that the fiscus was facing. One of these proposals was to increase donations tax from 20% to 25% for any donations made by a resident in excess of R30 million. This change has been approved and comes into effect from 1 March 2018.

New regulations imposing VAT on electronic services in South Africa

18 December 2018
On the 24th of October 2018, the National Treasury published new regulations for the purpose of “electronic services” as defined in Section 1 of the Value Added Tax Act (VAT) Act of 1991 but specifically relating to the supply of electronic services and which will come into effect from the 1st of April 2019.