Tax Rules You May Not Agree With, But Need to Plan For

Do you ever get the sense that SARS sometimes wants to have their cake and eat it? By this, I’m talking about situations where it appears that having already extracted tax on a particular amount received, SARS takes a second bite at the cherry. And on the fact of it, that’s not fair! I often […]

How New VAT Thresholds Are Reshaping SME Year-End Planning

For the first time in 30 years, South Africa’s compulsory VAT registration threshold has increased to R2.3 million, forcing thousands of SMEs into difficult financial and tax decisions at year-end. While the R1.3 million increase offers immediate compliance relief, treating the reform as a simple cost-saving exercise could jeopardise the long-term cash flow and corporate […]

Death Is Unavoidable, But Estate Taxes Can Be Planned For

Estate duty is one of those taxes that many people know about in theory, but very few actively plan for. It only becomes real when a loved one passes away and the estate is wound up, often revealing how much value quietly leaks away to taxes, fees, and avoidable inefficiencies. The reality, however, is that […]

Double Tax Agreements and Pensions: When Paying Tax Twice Becomes a Reality

As the global workforce becomes increasingly mobile and retirees seek out international destinations for their golden years, the issue of cross-border taxation has grown in importance. One of the most critical tools in managing international tax burdens is the Double Tax Agreement (DTA) – especially in the context of pensions. What is a DTA? A […]

Investing in a Child’s Name? They Gain, You Pay

The reasons for putting an investment in a child’s name may well be altruistic, but it could backfire when it comes to tax. I can’t believe it’s been 13 years since my wife and I were thinking about our son starting high school. With me at seminary at the time, training to enter the Methodist […]

Understanding Residency in Terms of Tax

When earning an income in South Africa, you are probably paying tax. The Income Tax Act 58 of 1962 (“the Act”) describes gross income as: “(i) in the case of any resident, the total amount, in cash or otherwise, received by or accrued to or in favour of such resident; or (ii) in the case […]

Declaring Too Much Income to SARS?

It sounds crazy, but it happens more often than one would think… Many a taxpayer has experienced the wrath of SARS when failing to declare all of their income. The penalties for non-declaration of income are severe—up to 200% of the tax evaded as a consequence of not declaring an amount that is taxable. But […]

When SARS Says ‘No’, They Must Tell You Why

Taxpayers have the right to obtain reasons for decisions by SARS. When I was about three years old, my mother admonished me not to play with matches, and like the precocious brat I was, I demanded to know “why”. Many a parent, faced with similar demands from their offspring, would be tempted to exert parental […]

What’s In a Name?

The differences between an allowance, an advance, and a reimbursement are critical when it comes to tax. What’s the difference between an allowance, an advance, and a reimbursement? To many people, these are different terms for the same thing, but to SARS, the category that a payment falls into is critical when it comes to […]

Tax Issues Relating to Independent Contractors

The following question was recently received from one of our readers: I see myself as an independent contractor as I do contract work (project management) for different companies. In the 2023 income tax year, I worked for four companies, of which only one indicated on their IRP5 under code 3616 that the income I earned […]