Should foreigners invest directly into SA? The news* of the revised double tax agreement between South Africa and Mauritius (“the new DTA”) on Monday, 27 May, rang alarm bells for both Mauritian companies investing into South Africa as well as for South African companies expanding offshore via Mauritius.
Author: Nyasha Musviba
Is your business ready for the carbon tax?
Strategy should take costs into account. Johannesburg – The carbon tax to be introduced on 1 January 2015 is the biggest change to the South African tax landscape since the introduction of capital gains tax in 2001. Households and businesses will all be affected to some extent and have until January 2015 to come to terms with, and devise a strategy for, the impact that a carbon tax may have on their operations.
What do Apple, Google and Starbucks have in common?
by Ingé Lamprecht Managing tax base erosion and profit shifting in a new world order. What do Apple, Google and Starbucks have in common? The US? Right. Adored by many South Africans? Right again. Moreover, these companies have all recently been under fire for not “paying their fair share” of taxes, especially in the UK. Yet they have all emphasised that they are following the tax laws to the letter.
South Africa, Mauritius DTA Revisions Could Catch Out Multinationals
by Lorys Charalambous, Tax-News.com, Cyprus According to Johan Hatting, PricewaterhouseCoopers’ senior international tax manager, the revised double taxation agreement (DTA) between South Africa and Mauritius, which was signed on May 17 this year and should, from January 1, 2015, replace the original treaty signed in July 1996, could prove problematic for South African multinationals.
Carbon tax to earn R8-billion a year
The treasury will earn at least R8-billion from a R120 per tonne tax on carbon emissions from industry. But most companies will get a 60% discount. The treasury will earn at least R8-billion from a R120 per tonne tax on carbon emissions from industry. (Reuters) South Africa committed in 2009 to reduce its carbon emissions by 34% by 2020. Every government department was then told to do its part, and treasury chose a carbon tax. In this year’s Budget speech, Pravin Gordhan said the tax would start on January 1 2015.
New tax form required for claiming relief for foreign taxes imposed or withheld on SA residents, says Deloitte
Issued by: Magna Carta (PR) Taxpayers claiming relief for foreign taxes improperly imposed or withheld should take note that they are now required to complete a new declaration form that must be completed before relief can be claimed, says Deloitte. “The form (‘FTW 01’) is applicable to South African residents seeking relief for improperly imposed or withheld foreign taxes in terms of Section 6quin of the Income Tax Act, which was introduced with the Tax Laws Amendment Bill of 2011,” says Louise Vosloo, Director in International Tax at Deloitte.
SA, Mauritius sign new tax treaty
South Africa has signed a new tax treaty with Mauritius, accounting firm PriceWaterhouse Cooper (PwC) said The abuse of the old, 1996 treaty was the main reason for the new treaty, said PwC international tax senior manager Johan Hatting (SUBS: CORR). Some had feared the SA Revenue Service and the National Treasury would simply terminate the treaty because it was being abused by South African multinationals, he said.
SARS: 15 years in jail a warning to rogue staff
SARS hopes a long jail sentence handed down to a former employee convicted of racketeering will deter staff from committing fraud. Yesterday (23 May 2013), the Cape Town High Court sentenced Edmund Fredericks and Aaron Carelse to 15 years in jail. Judge Daniel Dlodlo found that Fredericks, a former SARS employee, had been the key figure in several VAT and income tax scams. The two men were found guilty of fraud, forgery and “participating in an enterprise through a pattern of racketeering”.
Tax on foreign employment income likely to change
It is common practice in many multinational organisations for employees to render services in more than one country. In the case of South African tax residents working abroad on long-term assignments, the recent announcement in the 2013 budget regarding proposed changes to the foreign earnings exemption may potentially affect their South African tax liability in relation to foreign-earned remuneration.
Courts reel in SARS ‘fishing expeditions’ against taxpayers
Source: Evan Pickworth (BusinessDay live) OPEN-ended fishing expeditions by the South African Revenue Service (SARS) could come under attack as court actions begin to mushroom against tax assessments in South Africa, a tax conference heard on Wednesday.