Constance Kawelenga

Why Small Business Corporation Tax Might Be Your Salvation

If you are a Private, Close Corporation, Co-Operative or Personal Liability company, then this salvation might be for you. The above-mentioned companies may be classified as Small Business Corporation if they meet the requirements of being as such (SBC).  Let us look into what is required for a company to…
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Tax Implications for Independent Contractors – Who, What and How

There really is no specific definition of ‘Independent Contractor’.  According to the common law, the concept is merely another word for “Entrepreneur” or “Employer”, whereas according to the South African law traditionally, it refers to contract of locatio conductio operis. This term includes three types of transactions namely; The letting…
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What Is Beneficial Ownership?

With crime activities such as money laundering increasing, it is crucially important for proper measures to be taken to mitigate the risks that give rise to such criminal activities. The national risk assessment identified legal persons as vehicles prone to abuse for money laundering and terror financing activities.  As a result, the…
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VAT and PAYE Registration

VAT Introduction and Registration Process If you are a person who carries on an enterprise and looking for efficient ways your business can pay less tax and also claim back tax on expenses incurred while carrying on trade, then this might be for you.  The Value Added Tax Act defines…
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Travel Allowances and Reimbursements

A travel allowance is “any allowance paid, or advance given to an employee in respect of travelling expenses for business purposes.” The general position is that private travel is taxable and business travel is not taxable.  Fundamentally, the legislative framework makes provision for two scenarios –  A travel allowance given to…
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Public Benefit Organizations and Tax Implications

A Public Benefit Organisation (PBO) is a section 21 (Companies Act) company, a trust, or an association of persons; of which the sole object is to carry on one or more “public benefit activities” in a non-profit manner; and carries on all (or substantially all) such activities in South Africa. …
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A Quick Guide to Income Tax for Trusts in South Africa

A trust is defined as the legal relationship created by a person (the founder) who places assets under the control of another (the trustee) for the benefit of specified persons (beneficiaries) or for a specified purpose.  Any distribution to the beneficiaries of the trust must be made in accordance with…
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