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?

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

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

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.

Tax Compliance in 2025: Help Is at Hand

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

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.

Medium-Term Budget Policy Statement (MTBPS) – what South African taxpayers need to know

Finance Minister Enoch Godongwana's recent MTBPS has significant implications for South African taxpayers across all income brackets. Delivered on October 30, 2024, the speech outlined the government's fiscal strategy amidst economic challenges, including lower-than-expected tax revenues and rising debt levels.

Global Corporate Tax Changes: Advice Is More Crucial Than Ever

There have been significant shifts in the corporate income tax landscape of late – not only in South Africa, but across the globe. The global minimum tax is a pertinent example. And although its immediate impact is on large multinationals, the changes could well benefit local businesses in the long term.

Ready to Submit Your Interim EMP501 Reconciliation By 31 October?

Yes, yet another EMP501 reconciliation is due! That’s because not one, but two recons are due in each tax year. By 31 October, the interim EMP501 reconciliation for the last six months must be submitted, accurately and on time.

How To Avoid an eFiling Profile Hijacking

SARS eFiling profile hijackings are becoming an increasingly concerning and common hazard. Reports of this type of cybercrime have peaked in recent months and both individuals and businesses must take proactive steps to prevent an attack.

Clarity on Extension of Diesel Refund to Manufacturers of Foodstuffs

In a move aimed at bolstering the local manufacturing sector which is currently under severe pressure further compounded by the Ukraine crisis, the South African Revenue Services (SARS) has provided much-needed clarity on the extension of the diesel refund scheme to manufacturers of foodstuffs.

Tax Evasion and SARS's Crackdown on Non-Compliance: What South African Business Owners Need to Know

In recent years, the South African Revenue Service (SARS) has ramped up efforts to combat tax evasion, a growing concern that has led to significant revenue losses for the country. For business owners, understanding the importance of tax compliance and maintaining proper records has never been more crucial. As SARS intensifies its crackdown, the risks associated with non-compliance have increased.

How to Survive Trust Tax Season 2024

Trustees take note! The 2024 Tax Season for trusts opens on 16 September this year and will close on 20 January 2025. During this time, all trusts – including dormant trusts – are required to submit income tax returns aligned with other SARS reporting requirements and accompanied by extensive supporting documents.

Beware the Taxman When Accessing Your Three-Pot Retirement Savings!

Two new ‘pots’ have been added to SA’s retirement system from 1 September 2024. This allows South Africans to access a portion of their retirement savings before retirement, without having to resign their jobs and withdraw all their savings, as before.

2024 Tax Filing Season Updates

The South African Revenue Service (SARS) has announced key updates for the 2024 tax filing season, which commenced on July 1, 2024. This year, SARS will continue issuing auto-assessments for taxpayers with simpler tax affairs. Taxpayers are advised to check their auto-assessment status via eFiling or the SARS MobiApp, following an SMS or email notification.

Tax Implications of Withdrawing from Two-Pot Retirement System

Starting from 1 September 2024, individuals planning to withdraw from the savings pot of the Two-Pot Retirement System must be registered for tax. Unregistered individuals must complete their registration before applying to their relevant fund, as unregistered requests will be rejected by SARS.

Tax incentives to boost renewable energy generation

South African Revenue Service Issues Ruling on Taxable Income Set-Off against assessed losses for Companies

In a recent development, the South African Revenue Service (SARS) has issued a Binding General Ruling (Income Tax) 73 on the 30th of July 2024, shedding light on the meaning of taxable income for the purpose of setting off the balance of an assessed loss by companies. ​ This ruling aims to provide clear guidance on the limitation of set-off for companies under section 20(1)(a)(i) as amended by the Taxation Laws Amendment Act 20 of 2021. ​

National Treasury Welcomes Signing of Pension Funds Amendment Act

National Treasury expressed its satisfaction as the President signed the Pension Funds Amendment Act (31 of 2024) into law, marking the final step in implementing the two-pot system set to begin on 1 September 2024. ​ This act introduces crucial changes to various pension-related laws, including the Pension Funds Act of 1956 and the Government Employees Pension Law of 1996, essential for retirement funds, including public sector funds, to adopt the two-pot reform. ​

How to Breeze Through a SARS Audit

Nobody wants to go through a SARS audit, as collating all the documents requires time, money and effort. What’s more, it may result in the levying of understatement penalties of up to 200% with the harsher 200% penalty applying in instances where the taxpayer is either obstructive or is a repeat offender.

SARS Announces Auto-Assessment and Digital Platforms for a Seamless Filing Season

The South African Revenue Service (SARS) has recently made an important announcement regarding the upcoming Filing Season. ​ In line with their commitment to making the process easier and more convenient for taxpayers, SARS will be implementing auto-assessment for a larger pool of taxpayers this year. ​ Additionally, they have introduced various digital platforms to facilitate seamless interactions with taxpayers. Here is an overview of the announcement and highlights the key points for taxpayers to take note of.

Maximise your tax benefits from donating to PBOs

How to maximise your tax benefit from donating to PBOs and how the new SARS rules for S18A certificates affect you.