PROPOSED TAX RELIEF FOR OVER 65’S The National Treasury has proposed that the Pay as You Earn (PAYE) and Provisional Tax calculations be amended so as to provide some relief to taxpayers who are 65years and over. The proposal is that taxpayers over 65, who make contributions to medical schemes will be able to use [...]
B-BBEE CERTIFICATES AND SMALL BUSINESS The amended B-BBEE Codes of Good Practice became effective as from the 1 May 2015. The DTI published a Notice in the Government Gazette shortly thereafter, clarifying the dates the Codes become effective, as follows: All B-BBEE verifications conducted using the financial year ending before 30 April 2015, can [...]
DOUBLE TAX TREATY BETWEEN SA AND MAURITIUS IS A CLOUDY ISSUE January 2016 is set to see the new double tax treaty between Mauritius and South Africa, which has now been ratified, come into place. Tax experts have predicted that changes to the treaty, including withholding taxes for interest (10%) and royalties (5%), may be [...]
ECONOMIC GROWTH UNDER PRESSURE Policy makers are in a quandary as to what economic policy to follow. The sluggish economy needs stimulus to move forward, yet inflation is starting to rise. The South African Reserve Bank (SARB) has kept rates fairly consistent but will soon be forced to make a decision. A number of economists [...]
WITHHOLDING TAX ON INTEREST (WTI) WTI stands for Withholding Tax on Interest - a tax that now applies where a South African tax resident pays interest to a foreign person (which includes individuals, companies, etc.) on or after March 1, 2015. The foreign person is responsible for the tax, however it must be withheld by [...]
TAX FREE SAVINGS AND INVESTMENT ACCOUNTS National Treasury issued a media statement on Friday 20 February 2015 to indicate that the Minister has approved the publication of the Regulations and Notice under section 12T(8) of the Income Tax Act, 1962 that allows for the introduction of Tax Free Savings and Investment Accounts with effect from [...]
2015 BUDGET SPEECH – HIGHLIGHTS In his first National Budget speech, Finance Minister Nhlanhla Nene stated that it was a challenging budget to prepare, under difficult circumstances, including electricity supply challenges and a weaker economic environment. As stated by Minister Nene, “The 2015 Budget tax proposals aim to increase tax revenues, limit the erosion of [...]
INTERNAL CONTROLS The South African media is awash with stories of maladministration, fraud and corruption. Small businesses are the most vulnerable to fraud because they often don’t have effective internal controls. This is largely as a result of the cost of ensuring compliance with internal control systems. However, by removing opportunity and motivation for fraud [...]
