The immediate effect of a VAT increase is often an increase in prices. The long-term consequences of higher VAT, as consumers adapt to higher prices, could undermine the financial stability of middle class and working class households.
Budget 2025 Highlights
Originally scheduled for 19 February 2025, the budget speech was postponed to 12 March 2025. This postponement sparked an unprecedented level of public debate, highlighting the difficult policy trade-offs that we face as a nation. What has become clear, is that the issues at stake are not just fiscal concerns but a reflection of the broader challenges in balancing diverse priorities for the future.
Value-Added Tax (VAT): Zero-rated vs exempt supplies
You must register your business for VAT if the total value of taxable goods or services in a year exceeds R1 million. A business may register voluntarily if this amount exceeds R50 000. But why would a business choose to be VAT registered? And what kind of business could benefit from becoming VAT registered?
Gaining from SARS’ primary residence exclusion
When you sell your primary residence, the first R2 million of any capital gain is exempt from tax. But there are conditions to qualify for the primary residence exclusion.
Tax residence of companies
Just like individuals who reside in South Africa, companies can be taxed on their worldwide income if they are residents of South Africa.
Can SARS help with education costs via tax deductions?
While most fringe benefits offered to employees are taxable, there are exemptions in the case of bursaries and scholarships. If your employer offers bursaries and/or scholarships to employees and their families, a portion of the benefit will not be taxed.
Tax on retirement savings
We’re all aware of the importance of retirement planning and knowing how this will affect your standard of living after you retire. A critical aspect of retirement planning is understanding how the tax on your retirement savings will work.
Basic introduction to dispute resolution with SARS
Taxpayers often forget about or ignore the request for additional assessment, causing them to wait until it’s too late to query or dispute it. This article outlines some basic timelines taxpayers should be aware of when issued with an assessment.
Dividends and Dividends Tax
The definition of a dividend in South African law can be quite complex – the concept of what constitutes a dividend goes much wider than “ordinary” dividends.
Income tax and trusts: A basic introduction
In common law, a trust is not a juristic person. Historically, trust income ‘flowed through’ a trust, retaining its ‘nature’ until it reached the beneficiary. In this way, income from a trust was taxed as if it was earned directly by the beneficiary. This had distinct advantages. But recent changes have restricted this conduit-pipe principle.