Leaving South Africa for good? What does this mean from a tax perspective?

The Lockdown period, for those who still have some income, has given time for reflection and the opportunity to make some firm decisions about the future. In a recent article it was reported that the number of enquiries from South Africans to a global emigration advisory company during this time showed a significant spike, as … Continue reading Leaving South Africa for good? What does this mean from a tax perspective?

Working (‘Trading’) from your home and the impact on the R2 million CGT primary residence exclusion

In my previous article I talked about the possibility of some income tax relief that you may qualify for whilst working from home. This is particularly relevant given many people have little choice but to do so under the Lockdown. However, one needs to also be aware of the negative tax consequences of working from … Continue reading Working (‘Trading’) from your home and the impact on the R2 million CGT primary residence exclusion

Working from home during Covid19 lockdown- can you claim any tax deductions?

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So here you are, sitting at home during Lockdown, but far from it being like a holiday you are working as hard as ever, if not harder (especially taking into account the time the you are having to put in keeping your children educated (the schools have been amazing but children need input) and that … Continue reading Working from home during Covid19 lockdown- can you claim any tax deductions?

How the VAT works for holiday accommodation

In my last article I spoke about the fact that the VAT treatment differs for different uses of immoveable property, but I left the “commercial accommodation” aspect for today’s article. The holidays are a good time to address this issue as it looks at various types of ‘holiday accommodation’ and whether there is a need … Continue reading How the VAT works for holiday accommodation

VAT for fixed property can be a minefield

Confusion continues to reign when it comes to fixed (immoveable) property (which I shall simply refer to ‘property’ here) and VAT. The key is to be aware of the use to which you are putting the property, and to make sure you are treating the VAT correctly (I won’t look at the documentary requirements here … Continue reading VAT for fixed property can be a minefield

Incorrectly claiming VAT when your business spends money on food, beverages, hospitality and other “entertainment” could prove costly.

You are probably aware that, notwithstanding that you may be a registered vendor for VAT purposes and you obtain valid VAT tax invoices for everything you buy for your business, you are generally not allowed to claim the VAT charged to you for the purposes of ‘entertainment’ as an input tax deduction on your VAT … Continue reading Incorrectly claiming VAT when your business spends money on food, beverages, hospitality and other “entertainment” could prove costly.

Business vehicles – Can you reduce the cost by getting a refund of the VAT?

Are you planning to purchase a new vehicle for use in your business? If so, if you are registered with SARS as a VAT vendor, are you under the impression that you may claim a refund of the VAT charged to you by the seller of the vehicle? BEWARE- there are only very limited circumstances, … Continue reading Business vehicles – Can you reduce the cost by getting a refund of the VAT?

Must the winners from on-line games and gambling make a tax contribution to society?

This week the news was full of the 16-year- old American, Kyle Giersdorf, who won US$3mn in the World Cup online game, Fortnite Battle Royale. His win raises an interesting tax question: if he was a South African playing a South African game would he have to contribute to the welfare of his fellow South … Continue reading Must the winners from on-line games and gambling make a tax contribution to society?

Don’t always count on rental losses to reduce your tax bill

By Barry Ger* Every person who buys a rental property as an investment hopes to make a profit but that doesn’t always happen. Often, the rental your tenant pays doesn’t cover the interest on the bond you took out to finance the property, the fees paid to the management agent, the levies or rates, as … Continue reading Don’t always count on rental losses to reduce your tax bill

Tax Season is open…..does that mean you have to file a tax return?

[for prior posts see link at end of "about the author"] The newspapers have spoken a lot about our new tax Commissioner's comments about people not having to submit tax returns if they earned less than R500 000 in the tax year ended 28 February 2019. This has unfortunately led to a lot of confusion … Continue reading Tax Season is open…..does that mean you have to file a tax return?