Category: Income Tax

Personal tax consequences for South African executives on foreign boards – the Netherlands as an example

Nyasha Musviba

Introduction South African companies are increasingly looking to global expansion to build their capabilities and expand their operations into foreign jurisdictions. Where South Africans serve on the boards of foreign companies and render services to foreign entities, they typically do so in terms of split employment contracts in respect of their services rendered within and outside of South Africa. In addition to the remuneration, they may also receive directors’ fees for services rendered to the boards. Their employment contracts with the foreign company and the requirement that such services must be rendered outside of South Africa, are essential to ensure that these foreign entities are effectively managed in the countries where they are registered, and not in South Africa.

A Departure From ‘Adequate Reasons’ and Common Sense

Nyasha Musviba

Author: Daniel Areias & Johan Kotze (Bowman Gilfillan) All taxation , in one way or another, may impact upon fundamental human rights. However, to ensure that the imposition is not absolute, section 5 of the Promotion of Administrative Justice Act provides that every person, whose rights may have been materially and adversely affected by administrative action, may request written reasons for that action from the administrator responsible.

SARS audits and taxpayers’ rights

Nyasha Musviba

Authors: Beric Croome & Jerome Brink (ENS) The Tax Administration Act, Act 28 of 2011 (‘the TAA’) came into effect on 1 October 2012. Its promulgation brought with it many changes to not only taxpayers’ rights and obligations but the reciprocal rights and obligations on the part of the South African Revenue Service (‘SARS’) in its continuous busines

Primary Residence Exclusion

Nyasha Musviba

Is it true that globally mobile employees can sell their homes and not pay capital gains tax even if they rented it out for a number of years? It is true in most cases. The general rule is that when you sell your home, the capital gain realised on the sale is excluded from capital gains tax up to a limit. Based on the Income Tax Act No. 58 of 1962 (the Act), you will pay no capital gains tax on the first R2,000,000 you make when you sell your home. There are, however, some restrictions on this exclusion.

High Court Rejects Challenge of Exchange Control Ruling

Nyasha Musviba

Billionaire entrepreneur Mark Shuttleworth emigrated from the Republic in February 2001. Following his emigration, he made applications to transfer portions of his blocked funds from the Republic. In the second of these (in 2008) he was permitted to remit funds subject to a levy equal 10% of the amount remitted.

Group tax: A simple solution?

Nyasha Musviba

Ingé Lamprecht New bill introduces complications. JOHANNESBURG – The benefits of a group taxation system should be investigated. Zweli Mabhoza, head of taxation services at SizweNtsalubaGobodo, says one of the reasons why group taxation – where legal entities within a group of companies are treated as one taxpayer – has been opposed in the past, is because South Africa does not have sufficient skills to support the introduction of such a complicated tax system.

Notice to furnish returns for the 2013 year of assessment

Nyasha Musviba

Tax season in a nutshell. General comments Government Notice no. 451 was issued by the Commissioner on 28 June 2013.  Its purpose is to give notice to furnish returns in respect of the 2013 year of assessment.  The returns that the notice refer to are of course the ones required for the assessment of normal tax.  This alert will deal with the content of the Notice.