To claim or not to claim VAT, that is…
Some vehicles you cannot claim VAT on, some you can and knowing the difference can save you a lot of money. When can you claim input VAT on a vehicle? Most businesses that are registered for VAT will be aware that you generally cannot claim input VAT on the purchase of a ‘motor car’ as […]
The dangers of single-spouse financial planning
The ability of families and retired couples to plan effectively to protect their financial future can be hampered when just one person is entirely responsible for all financial matters. Our team routinely consults with clients who are surprised or even bewildered when they find themselves to be the surviving spouse following a partner’s death. Particularly […]
Is there a need for sectional ownership?
Professor C.G. van der Merwe, the doyen of sectional titles in South Africa, sets out the reasons for introducing sectional ownership into a legal system. He states that these reasons or aims are similar worldwide and mean legislative recognition of the social, economic, and physiological needs of society. The need and demand for suitable residential […]
Registered antenuptial contracts vs agreements between spouses
The term ‘antenuptial contract’ can refer to either an informal contract or a contract complying with the formalities required by s 87 of the Deeds Registries Act 47 of 1937. The public is not always aware of the fact that a verbal or written contract can be binding inter partes (between the parties) because an […]
What to Do if You Owe SARS Money
Owing money to the South African Revenue Service (SARS) can be stressful, but don’t panic. By understanding your options and taking prompt action, you can resolve the issue and minimise the impact. This guide will equip you with the knowledge you need to navigate a tax debt situation. The importance of addressing tax debt Take […]
Pension Funds and Emigration
Investing in an offshore retirement fund is one way of growing your wealth in a stable economy over the longer term, or even gaining residency in a foreign country. However, for South Africans, this scenario presents as many challenges as it does opportunities, and should only be considered after consulting with a financial advisor and […]
Travel Claims, but No Allowance?
For commission-earners and the self-employed, the rules are slightly different—but travel costs can be claimed. The mistake that I make when writing articles about travel allowances is that I tend to forget that not all of us are ‘wage slaves’. Indeed, there are many taxpayers for whom the saying, “If a man will not work, […]
Understanding the Foreign Services Income Exemption: The Requirement for Service Rendering
Many articles have been written about the application of the foreign income exemption provided for under Section 10(1)(o)(ii) of the Income Tax Act. This section provides for an exemption from South African tax from specific employment income earned while rendering services outside South Africa. The section limits such income qualifying for the exemption to any […]
Is your business covered for loss of income?
It’s all well and good being paid out for your assets, but what about the foregone earnings in the meantime? Small business owners who have a short-term commercial insurance policy are often not aware that they may not be covered for the loss of income, under a standard commercial policy. Although a standard short-term insurance […]
Share Disposals: Calculating SARS’s slice
How to work out the taxable capital gain when disposing of share investments One of the underlying principles of Capital Gains Tax (CGT) is that a capital gain is normally determined as being the difference between the proceeds on sale of an asset, less the so-called ‘base cost’. Calculating the base cost is therefore critical […]