How to evaluate investment opportunities
A rewarding investment begins with a thorough evaluation. Understanding how to evaluate investment opportunities enables you to safeguard your financial future. It’s not just about spotting a potentially profitable venture, but also about ascertaining whether the opportunity aligns with your financial aspirations, risk threshold, and long-term investment strategy. Here is an easy-to-follow guide to help […]
Ways to navigate an interest rate hike in South Africa: The power of expert advice
When the sun is shining, it is the opportune time to fix the roof. This adage is especially true in the context of economic situations, where preparation is key to weathering financial storms. In South Africa, as in many parts of the world, interest rates have seen an upward trend, posing significant implications for personal […]
TAX OBLIGATIONS WHILE INCARCERATED
Decisions of South Africa’s courts are an essential source of law. The courts uphold and enforce the Constitution and develop common law that is consistent with the values of the Constitution, and the spirit and purpose of the Bill of Rights. In a taxation context, court decisions assist in how legislation must be interpreted or […]
CLEARING LOAN ACCOUNTS THROUGH DIVIDENDS
In terms of the Tax Administration Act, the South African Revenue Service (“SARS”) can issue, in response to an application, Binding Private Rulings (“BPR”) and clarifies how the Commissioner would interpret and apply the provisions of the tax laws relating to a specific proposed transaction. BPR 346 determines the income tax and dividends tax consequences of the redemption of intra-group loans […]
SARS HELPING BUSINESSES LESSEN THE TAX LOAD
The last few months have been extremely tough for small business owners as a result of the global COVID-19 pandemic, and various lockdown measures that have created a challenging trading environment. The South African Revenue Service (“SARS”) has identified this hardship, and as a result, the National Treasury recently tabled the Disaster Management Tax Relief Administration Bill, which would assist micro, small and […]
HOW TO GET OVER THE TAX HEADACHE THIS YEAR
The tax season is swiftly approaching. For many people, it’s a time of the year that they dread. When it comes down to it, tax can become complicated mess that involves a lot of maths and calculations that just doesn’t come naturally to most. For those of us who don’t have PhDs in accounting or […]
DOES YOUR HOME OFFICE QUALIFY YOU FOR A TAX DEDUCTION?
As the old adage goes, change is as good as a holiday. But the way that the novel coronavirus has shaken up the world we live in, has, to the contrary, been extremely disruptive and stress-inducing. For many people, the disruption has come in the form of shifting from the traditional office space to working […]
EXPORT REGULATIONS BINDING GENERAL RULING
Interpretation Note 30 (“IN 30”) by the South African Revenue Service (“SARS”) explains the requirements that need to be adhered to and prescribes the documentary proof, acceptable to the Commissioner, that must be obtained and retained by a vendor in order to levy value-added tax (“VAT”) at zero rate on a supply of movable goods, […]
CHOOSING THE BEST BASE OF OPERATIONS
When businesses expand, they often look beyond national borders. With such an expansion, there are several added advantages for establishing a holding company, which then owns the various group operating companies in different jurisdictions. Various aspects contribute to considering an ideal holding company location, and a brief discussion is outlined below. Political stability Political instability […]
DOUBLING DOWN ON INCOME TAXES
The purpose of double tax agreements (“DTA” or “treaty”) between the tax administrations of two countries is to enable the administrations to eliminate double taxation, where each country intends to levy a tax in respect of the same amount of personal income. South Africa has a very favourable treaty network across the world. Generally, the […]