%

26 Apr 24

Disability Allowances: Medical Scheme Fees Tax Credit (MTC)

A Medical Scheme Fees Tax Credit (MTC) is a rebate which, in itself, is non-refundable, but which is used to reduce the normal tax a person pays. The MTC applies to fees paid by a taxpayer to a registered medical scheme (or similar fund outside South Africa) for that taxpayer and any…

26 Apr 24

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…

26 Apr 24

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. …

25 Apr 24

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…

25 Apr 24

Share Blocks and Body Corporates – Definitions, Differences and Tax Exemptions

In terms of section 7(1) of the share blocks control act, no 59 of 1980 (“the act”), the main object and business of a share block company are to operate a share block scheme in respect of immovable property owned or leased by it. In a share block scheme, individuals…

25 Apr 24

What Is Provisional Tax?

Provisional Tax is not a separate tax from income tax. It is a method of paying the income tax liability in advance, to ensure that the taxpayer does not have a large tax debt on assessment. The tax liability is spread over the relevant year of assessment where it requires…

19 Mar 24

The Vital Role of Accountants in Business Growth

There exists a silent force largely responsible for driving the wheels of growth and prosperity in businesses that achieve massive success in South Africa — ACCOUNTANTS. These financial experts play a pivotal role in the success of businesses across various sectors, serving as trusted advisors, strategic planners, and guardians of…

01 Dec 23

Retirement Planning and Associated Tax Benefits in South Africa

South Africa offers various tax incentives and benefits to encourage its citizens to plan for their retirement. These incentives are designed to promote financial security for individuals in their later years and reduce the burden on the social welfare system. Today, we will explore how the South African government supports…

01 Dec 23

8 Rules and Regulations Your Company Must Comply With

Starting a business in South Africa is relatively easy nowadays, but it comes with a complex web of rules and regulations that can seem bewildering to navigate, especially when one is not an accountant. It is good to stay up to date with the various regulatory requirements to avoid penalties…

30 Nov 23

How Do I Register a Business in South Africa?

Starting a business in South Africa has become a relatively easy and quick process, but it comes with its own set of regulations and requirements. The process involves multiple steps and registrations, and it’s important to understand the options available to you. In this article, we’ll explore the various types…