RSM South Africa

Tax insights

"Double-dipping" of government grants

5 September 2019
With the current downturn in the South African economy, many small and medium-sized businesses will turn to government to provide them with some sort of relief. This relief would come through the granting of government grants. These companies would then assume that the government grant they received will be exempt from normal tax, which is correct

When does interest paid by SARS accrue to a taxpayer?

7 August 2019
The “gross income” definition in the Income Tax Act, starts as follows: “in the case of any resident, the total amount, in cash or otherwise, received by or accrued to or in favour of such resident; or…”

The new Expat Tax on income earned abroad - Part 2

31 July 2019
From 1 March 2020, South African residents who spend more than 183 days in employment outside the country will be subject to taxation, in South Africa, on any foreign employment income that exceeds R1 million (provided that all other conditions are met). The true cost of this amendment on the pockets of ordinary South African expats

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 New rules were proposed in 2017, but were subsequently withdrawn due to their wide nature and complexity.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.