“Houston, we have a problem”: Foreign services income
The foreign services income exemption actually requires services to be rendered in order to qualify. 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 […]
Flying towards a tax saving: Double Tax Agreement, or financial emigration?
Having visited over 12 international locations in 2022, and engaging with South African expatriates, we can attest to a recent report issued by the United Nations, which found that around 900 000 South Africans are already living and working overseas—and indeed, this may well be an understatement. The common misconception amongst expatriates, however, is that getting […]
Non-dependent medical expenses
Can you claim medical expenses for someone not a member of your medical scheme? You can, but there are many boxes to tick. Medical scheme membership is normally offered to individuals and their immediate dependents, who would usually be their spouses and children under 18 (unless they are in full-time education, in which case they […]
Render unto Caesar: Shares and the SARS slice
Whether you are a share trader or a long-term investor, when you make a profit, SARS will want its slice of the pie. Ever since biblical times, there has been a tug-of-war between governments trying to extract as much as possible from their citizens in the form of taxes, and individuals trying to keep as […]
Short-term cover – Loss of income cover with a difference
Why retrenchment cover is a non-negotiable need for those currently employed Being retrenched is one of the most traumatic transitions a person can go through in their career, and as the world grapples with the aftermath of the pandemic and strained economies, retrenchments are unfortunately still a reality for many people. The shock of being […]
Never do things just ‘for tax purposes’
A decision based solely on tax considerations is likely to be the wrong one. “I hate tax!” These were the words spoken by a director of one of the clients of the audit firm with whom I served articles. Whilst many would agree with this sentiment towards the tax-man, this particular individual’s zeal in devising […]
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 […]
How to object to your income tax assessment
You and SARS are entitled to have a difference of opinion. This article, which was originally published in the May 2014 issue of Tax Breaks, has been updated to take later developments in SARS’ processes (and e-filing functionality) into account. You’ve got your tax return in on time, and your tax practitioner told you that […]
Investment insights: Maximising interest returns
Navigating the trade-off between liquidity and return. Investors with a more short-term or undefined investment horizon often leave their money in a bank deposit of some sort. Interest rates have been rising during 2022, making bank investments more attractive than they were in the past 12 to 24 months. The key challenge for these investors […]
Dividends in trading and investing
Dividend investing can be a solid strategy, so it’s worth knowing how dividends work What is a dividend? A dividend is a payment made by a company to its shareholders. Dividends are usually paid at a specific frequency—quarterly, semi-annually, or yearly. The size and payment of a dividend is determined by a company’s board of […]