Taxpayers who have a dispute with the South African Revenue Service (SARS) can now benefit from new rules that aim to simplify and expedite the resolution process. The new rules, which came into effect on 1 July 2023, replace the previous dispute resolution rules that were in place since 2003.
The tax incentive available for businesses to promote renewable energy will be temporarily expanded to encourage rapid private investment to alleviate the energy crisis. The current incentive allows businesses to deduct the costs of qualifying investments over a one- or three-year period, which creates a cash flow benefit in the early years of a project. Businesses are able to deduct 50 percent of the costs in the first year, 30 percent in the second and 20 percent in the third for qualifying investments in wind, concentrated solar, hydropower below 30 megawatts (MW), biomass and photovoltaic (PV) projects above 1 MW. Investors in PV projects below 1 MW are able to deduct 100 percent of the cost in the first year.
The South African Revenue Service (SARS), in terms of the Tax Administration Act No. 28 of 2011, has made provision for the Voluntary Disclosure Programme (VDP) to be permanently available to a qualifying individual, company or trust that seeks to voluntarily disclose and regularise their tax affairs. This step is aligned to the SARS’ strategic objective, which seeks to provide clarity and certainty as well as make it easy and seamless for taxpayers and traders to comply with their obligations.
“Democracy will have little
Many may think that they are not old enough or wealthy enough to warrant
Taxpayers, your turn to file your tax return starts on 1 July this year. The good news is that a significant number of individual taxpayers will be auto-assessed again this year, and this process will start in July. You will be sent an SMS if you are selected to be auto-assessed. When you receive the SMS, log into eFiling or MobiApp to view your assessment. If you agree with the assessment there is nothing more to do.
On 31 March 2022, the Minister of Finance and the Minister of Mineral Resources and Energy jointly announced a temporary reduction in the general fuel levy of R1.50 per litre from Wednesday 6 April 2022 until 31 May 2022 to provide limited short-term relief to households from rising fuel prices following the Russia/Ukraine conflict. The relief was to be funded by a liquidation of a portion of the strategic crude oil reserves.
The Bounce Back Support Scheme, a loan guarantee mechanism of R15 billion which was first highlighted in the February 2022 budget speech, has come into effect in April 2022. The scheme aims to facilitate job creation and economic growth in the wake of shocks such as the Covid-19 lockdowns, the July 2021 civil unrest in Kwa-Zulu Natal and Gauteng, and the ongoing flood disaster.
It is normal practice for the new rates for travel allowances for the ensuing year to be tabled in the Budget speech in February. For some odd reason the last two years SARS has only made this information available post-budget.
The Minister of finance Enoch Godongwana tabled his Budget review on the 23rd February 2022. The following were the key tax issues arising.
The Minister of Finance, Mr. Enoch Godongwana, tabled his budget review on 21st February 2024. While tax revenue performed well in 2021/22 and 2022/23 due to high commodity prices, revenue for 2023/24 is now expected to fall short by R56.1 billion. Government has proposed tax increases totalling R15 billion in 2024/25 to alleviate immediate fiscal pressures, while limiting the impact on economic growth. The following were the key tax proposals:
On February 8, 2024, President Cyril Ramaphosa delivered his eighth State of the Nation Address (SoNA) to a joint sitting of Parliament.
Biodiversity Tax Incentives for Protected Areas
COP 28 was held in Dubai from the 30th November to the 12th December 2023.Climate change has already started to impact South Africa in several ways:
SARS’ aim is to record all beneficial owners of registered Trusts in order to comply with the Financial Action Task Force (FATF) requirements. In this regard, certain information must be submitted via e-Filing. These documents may include, but are not necessarily limited to, the following:
In the world of business, the Pareto Principle, also known as the 80/20 rule, is a guiding light that can lead to increased efficiency and success. The principle suggests that 80% of results come from 20% of efforts. Here’s how businesses can harness the power of this principle.
The minister of finance will table his budget proposals on February 28th, 2024.Some of the key predictions on the back of an election year are as follows:
VAT enhancements for estimated assessments are changes to the VAT Act and the Tax Administration Act that affect how SARS can issue estimated assessments for VAT vendors who do not submit their returns or supporting documents on time. These changes aim to improve compliance and reduce tax evasion.
The two-pot retirement system is a new pension system was scheduled to be implemented in South Africa from 1 March 2024. This system allows for up to one-third of all retirement funds to be placed in a “savings pot” that will be available before retirement under the new scheme. The remaining two-thirds of a pension fund will thereafter be transferred to a “retirement fund” that can only be accessed upon retirement .
COP28 is the 28th session of the Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC), which is a global treaty to prevent dangerous human interference with the climate system. It is expected to be a turning point for climate action, as countries will assess their progress and plans to limit global warming to 1.5°C above pre-industrial levels, as agreed in the Paris Agreement. COP28 will also conclude the first global stocktake, a process that evaluates the collective efforts and gaps in achieving the Paris goals. COP28 is an opportunity to identify global solutions, accelerate the green transition, and protect lives and livelihoods from the impacts of climate change.
CIPC (Companies and Intellectual Property Commission) is an agency that regulates the registration and compliance of companies and intellectual property. One of its functions is to keep a register of beneficial ownership (BO) for companies and close corporations.
The National Treasury has proposed a delay in the implementation of the ‘two-pot’ retirement system until 1 March 2025. This system is designed to allow people to access one-third of their pension savings before retirement. The delay is intended to provide the savings and investment industry with more time to administer the changes.