Donations tax triggers the same tax liability as estate duty – a rate of 20%. This is to stop attempts to avoid estate duty. There are however scenario where donations tax does not apply.
How much tax will I pay?
South Africa uses a progressive tax rate system. This means the percentage tax charged for individuals increases as their taxable income increases. Although the tax rates that apply to income tax brackets can be alarming, your effective tax rate is usually quite a bit lower.
Tax on income: foreign employment and foreign employees
South Africa taxes its residents on their worldwide income. When double tax agreements (DTAs) don’t apply and the circumstances of the foreign income you earn aren’t specifically covered by the Income Tax Act, the originating cause of the income must be interrogated to determine its source.
Experts on Expat Tax
The term ‘residence’ is extremely important when you are considering the financial and tax implications of emigration. In this article I’ll focus on the two forms of residency that cause the most confusion: Excon residency and tax residency.
Highlights of Budget 2022
“We need to strike a critical balance between saving lives and livelihoods, while supporting inclusive growth. This budget presents this balance.” Finance Minister Enoch Godongwana Budget 23 Feb 2022.
A short guide to Capital Gains Tax
What is capital gains tax (CGT), and when does it apply? Understand ‘Base cost’ and ‘proceeds’ for calculating CGT and the relation between your Income Tax and your CGT.
An effective tax strategy
It’s peculiar that we reinforce the importance of having a tailored investment strategy, yet we neglect to consider the need for a tailored tax strategy. First, let’s debunk two tax strategy myths: 1.) The sole purpose of any tax strategy is the evasion of liability, and 2.) Your commercial decisions should be dictated by tax considerations.
Share incentive schemes
Tax rules governing share incentive schemes are complicated. Here we try to help employees better understand the potential tax consequences.
Foreign-employment income tax
It’s not uncommon for South African tax residents to find themselves working for their South African employer abroad, or being headhunted by a global company. Whilst this allows South African tax residents the freedom to travel, it does raise the question of where income earned abroad will be taxed.
Home office assets: Are they tax deductible?
In this post we take a closer look at the what’s and but’s of claiming tax deductions for the cost of assets that are essential to your home office business. Can you claim for the cost of your DJ-ing equipment? And how about your drums? Your chair?