South African residents are taxed on their worldwide income. Accordingly, a capital gain arising from the sale of shares in a foreign company will be subject to South African tax unless an exemption applies or a double tax agreement provides otherwise.
Category: Corporate Tax
Tax Ombud: Another toothless entity?
By Ingé Lamprecht Questions abound on its independence, limited powers. JOHANNESBURG – The tax industry has been lobbying for an ombud system as a cost-effective remedy for taxpayers for some time. The Tax Ombud, it was envisaged, could offer a remedy for taxpayers to use in instances of failures in service delivery and enforcement of rights with regards to tax administration, without the need to escalate to court at great cost and time delay.
How the Mauritian tax treaty will affect business
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.
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.
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.
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.
Does Sars invade your privacy?
Behind the Taxman’s controversial warrantless search powers. Finding a balance between taxpayers’ rights and Sars’s powers to search premises can prove difficult, especially in cases where a tax official does not have a warrant. The “warrantless search and seizure”, a controversial new power introduced in the Tax Administration Act that came into effect last year, has been debated at length since it was first proposed a couple of years ago. The criticism against the provision stems from fears that a warrantless search could infringe certain constitutional rights of taxpayers such as taxpayers’ right to privacy or fair administrative action.
Consideration for the surrender of a right to acquire shares
Section 8C under the spotlight. The South African Revenue Service (Sars) issued Binding Private Ruling 147 (ruling) on 14 May 2013. It deals with the tax treatment of compensation received by an employee for the surrender of a right to acquire shares under s8C of the Income Tax Act, No 58 of 1962 (Act).
Taxman tightens noose in cash hunt
Last year, SARS collected R12-billion less than its initial target. New regulations to gather more “intelligence” from third parties are set to pull the noose tighter around tax-evaders and those who simply keep sloppy records.