Dealing with Taxes South African beneficiaries of foreign trusts who receive distributions from those trusts are, in most cases, liable to tax in respect of such distributions. The anti-avoidance measures in section 25B and paragraph 80 of the Eighth Schedule to the Act also specifically provide for distributions out of trust capital to SA beneficiaries…
How to Effectively Claim Expenses Upfront payments are common in many industries but especially in construction and manufacturing. These upfront payments often defray costs that will be incurred over more than one tax year. The trouble from a tax perspective is that the full upfront payment is taxable with deductions to be incurred in following…
Taxpayers who let certain assets may qualify for a wear and tear deduction in respect of that asset. Under certain circumstances, the wear and tear deductible in respect of those assets are effectively limited to the rental income generated from that asset. Lessors should therefore be mindful of the applicable tax legislation governing wear and…
To claim a deduction of 150% under section 11D of the Act, the taxpayer needs approval from the Minister of Science and Technology. Without the approval, the deduction cannot be claimed under section 11D. It often happens in practice, however, that R&D approval is granted only after the taxpayer’s year of assessment for which the…
How do you Resist an Objection from SARS? SARS is afforded a discretion in the various tax acts which impower them to make decisions. Not all of these decisions are subject to objection and appeal. How to resist an objection from SARS? Examples include: A decision not to issue a reduced assessment in terms of…
183/60 day Tax Exemption Many South African expats are concerned about the impact on them consequent upon the change to the 183/60 days exemption. We provide some tips below to establish the effect, if any, that the change will have: The tax exemption only applies to SA tax residents. Non-residents who earn remuneration for employment…
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