RSM South Africa

Income Tax Act

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).

Distributions by companies to shareholders

15 March 2018
Requirements of the Companies Act and tax effects

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

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.

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.

IRP5 and EMP501 Submissions made easy

14 April 2016
SARS has announced that the annual Pay-As-You-Earn (PAYE) Employer Annual Reconciliation submission season will be open from the 18th of April until the 31st May 2016. During this time the EMP501 reconciliations that cover the period of 1st March 2015 to 29th February 2016 must be submitted.