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 […]
The ‘Big Three’ Tax Worries (Part 3): Property
Rounding up our series on the three main worries for taxpayers, we discuss property. So, you now know how to claim your car expenses on your tax return, and are reasonably confident that you can now manage your share investments without incurring the wrath of SARS. But the one thing that really keeps you awake […]
Set-Off of Assessed Losses, and Ring-Fencing
Unless you’re at the 45% marginal tax rate, most losses can be set off against other income. If a person is not at the maximum marginal tax rate, can they opt to have their taxable loss from their sideline business, e.g. bookkeeping, offset against the taxable income from normal employment (on which they pay PAYE) […]
The ‘Big Three’ Tax Worries (part 1): Cars
What keeps taxpayers awake at night? Judging by the many questions that I’ve been asked as a tax practitioner over the years, there is a definite ‘Big Three’ when it comes to problems that cause taxpayers sleepless nights: cars, shares, and property. The tax treatment of these three items probably causes more anxiety, and has […]
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 […]
Ten Easy Ways to Save Tax
No fancy schemes, loopholes, or expensive lawyers required – and it’s all perfectly legal! Paying tax is a legal responsibility, but that doesn’t mean you can’t make the most of legal avenues to reduce your tax burden. SARS provides a number of tax-efficient strategies that individuals and businesses can use to reduce their taxable income. […]
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 […]
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 […]
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 […]