Property Investment and Tax: Unlocking Wealth Without Triggering Liabilities
Nexia SAB&T on 24/06/2025

Property Investment and Tax: Unlocking Wealth Without Triggering Liabilities

In South Africa, property remains a cornerstone of wealth creation for high-net-worth individuals and SME owners. Whether you're building a portfolio of rental homes or investing through legal entities, the tax landscape can be both a gateway to growth and a minefield of costly missteps.

SARS Tax Case Sends Strong Message on Trust Accountability
Nexia SAB&T on 09/06/2025

SARS Tax Case Sends Strong Message on Trust Accountability

A recent ruling by the Johannesburg Tax Court has sent a powerful warning to trustees, funders, and high-net-worth individuals: poor record-keeping and vague financial narratives will not shield you from SARS scrutiny.

Budget 3.0: VAT Increase Out, Fuel Levy Hikes In
Nexia SAB&T on 02/06/2025

Budget 3.0: VAT Increase Out, Fuel Levy Hikes In

Last month’s Budget 3.0 withdrew the contentious proposed VAT changes. This resulted in inflation-linked fuel levy increases of 16c for petrol and 15c for diesel, from 4 June.

Tax Avoidance vs Tax Evasion: Toeing the Line
Nexia SAB&T on 01/06/2025

Tax Avoidance vs Tax Evasion: Toeing the Line

There’s a thin line between tax avoidance, which is legal, and tax evasion, which is a tax crime. Every taxpayer, corporate or individual, has the right and duty to ensure they don’t pay any more tax than what is legally required – but tax evasion can result in hefty penalties and even jail time.

2025 Budget Review: Key Updates
Nexia SAB&T on 07/05/2025

2025 Budget Review: Key Updates

The Minister of Finance, Mr. Enoch Godongwana, has announced that the 2025 Budget Review will be re-tabled on Wednesday, 21 May 2025. This revised budget will include the Fiscal Framework, Appropriation Bill, Division of Revenue Bill, and amendments to revenue laws. The decision follows the reversal of a proposed 0.5% increase in the Value-Added Tax (VAT) rate, which will remain at 15%.

Mind The Tax Gap! Here’s How…
Nexia SAB&T on 01/05/2025

Mind The Tax Gap! Here’s How…

Increased funding allocated in Budget 2025 will enable SARS to zoom in on an estimated R800 billion in unpaid taxes in South Africa, including a substantial so-called “tax gap” of uncollected taxes. For taxpayers, this means more scrutiny, enquiries, verifications, and audits – and more stringent debt collection measures.

SARS - VAT Announcement
Nexia SAB&T on 29/04/2025

SARS - VAT Announcement

25 April 2025 – The Commissioner for the South African Revenue Service (SARS), Mr. Edward Kieswetter has noted the Finance Minister, Mr. Enoch Godongwana’s decision to reverse the planned 0.5% VAT rate increase, which was initially set to take effect on 1 May 2025. This decision has significant practical implications for VAT vendors and consumers. As the administrator of all national government tax measures, SARS will ensure that the necessary adjustments are made to accommodate this change.

Why Use a Registered Tax Practitioner? Here’s What SARS Says…
Nexia SAB&T on 25/04/2025

Why Use a Registered Tax Practitioner? Here’s What SARS Says…

“Protect Yourself – Use Only Registered Tax Practitioners” was among the first messages from SARS this year. The message also highlighted the risks of engaging the services of unregistered practitioners and provided an online look-up feature where a practitioner’s registration can be verified.

Amendments to the South African Companies Act
Nexia SAB&T on 14/04/2025

Amendments to the South African Companies Act

The recent proposal by the Minister of Finance to increase the Value-Added Tax (VAT) rate by 0.5% on 1 May has sparked significant discussion. One of the key points of contention is the implementation of this increase without parliamentary approval, as outlined in Section 7.4 of the VAT Act.

The Institute of Race Relations Report
Nexia SAB&T on 14/04/2025

The Institute of Race Relations Report

The Institute of Race Relations (IRR) has recently unveiled a report that underscores the substantial financial burden imposed by Broad-Based Black Economic Empowerment (BEE) premiums on South Africa. The report, titled "Cut VAT & BEE," estimates that the legitimate cost of BEE premiums in public procurement is approximately R17 billion per annum. To put this into perspective, this amount is equivalent to the cost of constructing around 42,000 kilometers of new paved roads, enough to stretch from Cape Town to Beijing and back.

South Africa Increases Carbon Tax to Combat Climate Change
Nexia SAB&T on 14/03/2025

South Africa Increases Carbon Tax to Combat Climate Change

In a significant move to bolster its climate change mitigation efforts, South Africa has announced an increase in its carbon tax. Effective from January 1, 2025, the carbon tax will rise from R190 to R236 per tonne of carbon dioxide equivalent (tCO2e). Additionally, from April 2, 2025, the carbon fuel levy will increase by 3c/litre to 14c/litre for petrol and 17c/litre for diesel, as mandated by the Carbon Tax Act of 2019.

South Africa to Increase VAT Rate in 2025
Nexia SAB&T on 14/03/2025

South Africa to Increase VAT Rate in 2025

In a significant move to boost revenue, the South African government has announced a two-phase increase in the Value Added Tax (VAT) rate. The first increase of 0.5 percentage points will take effect on 1 May 2025, followed by another 0.5 percentage point increase on 1 April 2026. This decision comes after careful consideration of the potential contributions of various tax instruments, with VAT being identified as an efficient and broad-based source of revenue.

Review of the 2025 Budget Speech
Nexia SAB&T on 14/03/2025

Review of the 2025 Budget Speech

The 2025 Budget Speech addressed the economic stagnation of the past decade, with GDP growth averaging less than 2%. In 2024, the economy grew by only 0.6%, and medium-term projections estimate an average growth of 1.8%. The speech emphasized the need for faster, inclusive economic growth to meet developmental goals.

Maximising Your Wealth: The SARS Foreign Investment Allowance
Nexia SAB&T on 25/02/2025

Maximising Your Wealth: The SARS Foreign Investment Allowance

For South Africans looking to diversify their investments internationally, the South African Revenue Service (SARS) offers a useful tool - the Foreign Investment Allowance (FIA). This facility allows individuals to legally transfer funds offshore, providing them with access to global markets, asset protection, and financial growth. However, navigating the FIA requires careful planning to ensure compliance and avoid unnecessary risks.

Are You Ready for the Next Provisional Tax Deadline?
Nexia SAB&T on 07/02/2025

Are You Ready for the Next Provisional Tax Deadline?

The second provisional tax deadline for the 2025 tax year is just days away (28 February 2025). It’s the trickiest and most important provisional tax deadline of the tax year, because the income estimates on which it’s based must be highly accurate. Estimates that don’t fall within 80 – 90% of your actual taxable income can expose taxpayers to a stiff 20% under-estimation penalty.

SARS Reports Over 2 Million Tax Directive Applications for Savings Withdrawals
Nexia SAB&T on 03/02/2025

SARS Reports Over 2 Million Tax Directive Applications for Savings Withdrawals

The South African Revenue Service (SARS) has announced a significant milestone in the implementation of the two-pot system, with a total of 2,664,279 applications for tax directives received to date. Of these, 2,403,379 applications have been approved, resulting in a total gross lump sum payout of R 43.42 billion.

SARS Invites Public Input on 2025 Budget
Nexia SAB&T on 03/02/2025

SARS Invites Public Input on 2025 Budget

The South African Revenue Service (SARS) has issued a call for public input on the upcoming 2025 Budget. Finance Minister Enoch Godongwana will deliver the National Budget Speech in February 2025, and the government is seeking suggestions from South Africans on various budget-related topics.

Can You Afford to Work Overseas? How Double Taxation Agreements Work
Nexia SAB&T on 21/01/2025

Can You Afford to Work Overseas? How Double Taxation Agreements Work

If you live in one country and work in another, you may already be aware of the threat of double taxation. Your country of residence may want to claim tax for the services it provides, while the country you work in may want their income taxes too. It’s a tricky scenario that changes depending on the specific circumstances.

How to Obtain a Tax Directive from SARS
Nexia SAB&T on 02/12/2024

How to Obtain a Tax Directive from SARS

Obtaining a tax directive from the South African Revenue Service (SARS) is a crucial step for employers, fund administrators, and insurers to ensure the correct deduction of employees' tax from lump sum payments. This process is essential for managing tax liabilities on retirement funds, severance packages, and other lump sum benefits.