Taxes

Section 13quat provides a tax incentive in the form of an accelerated depreciation allowance to promote investment in designated inner-city areas. The main objectives are to address dereliction and dilapidation in South Africa’s largest cities and to encourage urban renewal and development by promoting private sector investment in the construction…

An amalgamation is the combination of two or more companies into an entirely new entity. Unlike an acquisition, where at least one company remains intact, none of the companies involved in an amalgamation survive as a legal entity. Instead, a completely new entity is formed, carrying the combined assets and…

The South African government has recognized that certain organizations are dependent on the generosity of the public. To encourage this generosity, a tax deduction is provided for specific donations made by taxpayers. The eligibility is restricted to organizations approved by the Commissioner that use the donations to carry on or…

Section 13bis of the Income Tax Act offers tax deductions for the erection or improvement of buildings used in the trade of hotelkeeping. If the building is used primarily for hotel-related activities, taxpayers can claim an annual allowance, provided certain conditions are met. Requirements for Section 13bis A taxpayer can…

The Section 12I Tax Allowance Incentive is a government initiative designed to boost South Africa’s manufacturing sector by supporting both Greenfield (i.e. new industrial projects that utilise only new and unused manufacturing assets) and Brownfield (i.e. expansions or upgrades of existing industrial projects) investments. This incentive offers tax benefits based…

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…

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…

Registering a company with the Companies and Intellectual Property Commission (CIPC) automatically gets you registered with the South African Revenue Services (SARS) for Income Tax purposes. This means that your company is now a registered taxpayer and therefore is obliged by law to submit an Income Tax return.  SARS classifies…

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…

A personal service provider (PSP) is a company or trust where the owner of the business renders service in his or her personal capacity using the business as a vehicle. According to the tax act, a personal service provider refers to a company which offers particular services and in reality…