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.
In most cases, individuals can offset tax losses incurred in respect of one trade against income received from another trade, thereby reducing their overall tax liability. However in some cases, SARS will look very closely at these losses (that very expensive hobby…). In these cases, SARS can ring-fence a tax loss.
It’s tempting to think of tax as a faceless bureaucratic bully. So it’s nice to know that there’s some solid sense in CGT allowances for small businesses, assets in a deceased estate, and even your cherished paintings. But don’t try hide your 20-ft yacht.
How is capital gains tax calculated on an investment bought after 2001? And before 2001?
There’s no change to personal income tax brackets, CGT, fuel levies or personal tax rebates. But there are interesting moves to increase revenue from other areas, and possibly, more affordable electric vehicles
Attention provisional taxpayers! Don’t miss the 2024 deadlines: First provisional tax return was due August 31, 2023. Second deadline: February 29, 2024. Late payments may incur penalties and interest. Stay updated to avoid complications with your taxes.
If you’re in the market for property, it’s very likely that you will be paying Transfer Duty to SARS. You might also hear of some sneaky ways to avoid or reduce this added expense. But beware! SARS has equally nifty mechanisms to ensure you pay your due (death and taxes…).
Declaring that you are no longer a South African resident seems simple: tick the relevant box on your annual tax return. The tax consequences however are less simple, starting with a Capital Gains event …
Do you want to claim tax deductions for your home office? Here’s what you need to know…
Whether you’re buying a home or building your property investment portfolio, you should always consider the tax consequences that go hand in hand with this long-term decision.
