RSM South Africa

Tax insights

Tax deadline dates - Simplifying your obligations

2 July 2018
We all know that keeping track of your personal tax filing obligations can be difficult to track at times. To add to the complexity, it does not help that you could potentially be required to address filing obligations for 3 different tax years in one calendar year. We set out below the due dates for all tax return filings in a tax year:

Tax Implications on foreign exchange differences

25 May 2018
International trading has become more and more customary for both individuals and companies, with imports and exports, as well as foreign investment becoming easier as the world becomes smaller with the help of internet, e-commerce, and so forth. This has led to more taxpayers having foreign currency assets and/or liabilities.

Conversion of debt into equity

23 April 2018
South African Revenue Services (“SARS”) in their Tax Laws Amendment Bill of 19 July 2017, supported by the Explanatory Memorandum thereto, acknowledged that a common mechanism used in practice by taxpayers to enable a debtor to settle a debt is for that debt to be converted into equity.

SARS announces prosecution of taxpayers with outstanding returns

20 April 2018
The South African Revenue Service (“SARS”) issued a media release on 16 April 2018 where they advised that they have started, together with the National Prosecuting Authority (“NPA”), to prosecute non-compliant taxpayers who have failed to submit their returns. Taxpayers who are found guilty will have a criminal record.

The effect of land expropriation without compensation on your business

13 April 2018
Land expropriation without compensation is a controversial topic in South Africa. Proponents of this topic mention the following benefits, amongst others: 

Changes to travel reimbursements from 1 March 2018

15 March 2018
Employers are able to compensate their employees, for costs incurred in respect of business travel, in a number of ways. One of the generally accepted methods of compensation is to reimburse the employee based on mileage travelled.

South African Value-Added Tax now at 15%

2 March 2018
Former Finance Minister Malusi Gigaba announced on 21 February 2018 that South Africans would now be paying 15% Value-Added Tax for standard rated supplies as of 01 April 2018.

2018 National Budget Speech - Tax Update

22 February 2018
On 21 February 2018 we were presented with the Budget Speech by current Minister of Finance, Malusi Gigaba. It was widely accepted that drastic steps would be proposed in the Budget Speech in order to address the revenue shortfall of R48.2 billion, an amount that is slightly lower than the Medium Term Budget Policy Statement (MTBPS) of R50.8 billion.

Financial Emigration vs becoming a non-resident for tax purposes

12 February 2018
This article intends to highlight the basic differences between financial emigration and the process of becoming a non-resident of South Africa for tax purposes. There is often confusion between the two concepts, and individuals sometimes incorrectly assume that neither, only one or both may apply to them.

Further tax consequences on disposal of shares by companies

23 November 2017
The release of the Taxation Laws Amendment Bill (TLAB) on 25 October 2017 includes a proposal which could have a significant tax impact for companies.  The proposed amendments to Section 22B of the Income Tax Act No.58 of 1962 and Paragraph 43A of the Eighth Schedule to the Income Tax Act No.58 of 1962 aim to inflate the proceeds on disposal of shares by a company