How New VAT Thresholds Are Reshaping SME Year-End Planning
For the first time in 30 years, South Africa’s compulsory VAT registration threshold has increased to R2.3 million, forcing thousands of SMEs into difficult financial and tax decisions at year-end. While the R1.3 million increase offers immediate compliance relief, treating the reform as a simple cost-saving exercise could jeopardise the long-term cash flow and corporate […]
Tax Rules You May Not Agree With, But Need to Plan For
Do you ever get the sense that SARS sometimes wants to have their cake and eat it? By this, I’m talking about situations where it appears that having already extracted tax on a particular amount received, SARS takes a second bite at the cherry. And on the fact of it, that’s not fair! I often […]
Double Tax Agreements and Pensions: When Paying Tax Twice Becomes a Reality
As the global workforce becomes increasingly mobile and retirees seek out international destinations for their golden years, the issue of cross-border taxation has grown in importance. One of the most critical tools in managing international tax burdens is the Double Tax Agreement (DTA) – especially in the context of pensions. What is a DTA? A […]
Investing in a Child’s Name? They Gain, You Pay
The reasons for putting an investment in a child’s name may well be altruistic, but it could backfire when it comes to tax. I can’t believe it’s been 13 years since my wife and I were thinking about our son starting high school. With me at seminary at the time, training to enter the Methodist […]
The ‘Big Three’ Tax Worries (part 1): Cars
What keeps taxpayers awake at night? Judging by the many questions that I’ve been asked as a tax practitioner over the years, there is a definite ‘Big Three’ when it comes to problems that cause taxpayers sleepless nights: cars, shares, and property. The tax treatment of these three items probably causes more anxiety, and has […]
Understanding Residency in Terms of Tax
When earning an income in South Africa, you are probably paying tax. The Income Tax Act 58 of 1962 (“the Act”) describes gross income as: “(i) 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 (ii) in the case […]
Understanding Your Rights as a Taxpayer: Tax Assessments and the Promotion of Administrative Justice Act (PAJA)
We all pay taxes in one way or another, but as a taxpayer, it is important to understand your rights when dealing with tax authorities, the laws applicable, and whether your constitutional rights might be affected. One of the most common taxes paid is personal income tax. A critical aspect thereof is tax assessments, which […]
Tax Issues Relating to Independent Contractors
The following question was recently received from one of our readers: I see myself as an independent contractor as I do contract work (project management) for different companies. In the 2023 income tax year, I worked for four companies, of which only one indicated on their IRP5 under code 3616 that the income I earned […]
Ten Easy Ways to Save Tax
No fancy schemes, loopholes, or expensive lawyers required – and it’s all perfectly legal! Paying tax is a legal responsibility, but that doesn’t mean you can’t make the most of legal avenues to reduce your tax burden. SARS provides a number of tax-efficient strategies that individuals and businesses can use to reduce their taxable income. […]
Handling Payroll for Freelance Workers in South Africa
Handling Payroll for Freelance Workers in South Africa Managing payroll for freelance workers involves a few key points, including understanding legal requirements, setting clear payment structures, and using the right tools. Here’s a practical overview to help businesses handle freelance payroll effectively. Legal Obligations Freelancers are generally considered independent contractors, but businesses still have some […]