On 14 March 2025, South Africa published a significant amendment to its VAT regulations on electronic services, set to take effect on 1 April 2025. This revision impacts foreign non-resident suppliers and local businesses relying on cross-border digital services. Notably, the amendment alters the definition of “electronic services” to exclude certain business-to-business (B2B) transactions from […]
Many South African expatriates have unknowingly missed out on paying lower taxes in South Africa for years while living abroad, due to confusing or misguided advice that they must reside outside the country for a number of years before officially ceasing tax residency in South Africa.
A misunderstanding of certain sections in the Income Tax Act has many South Africans who moved abroad and ceased tax residency, worried that they will also be liable to pay Capital Gains Tax (CGT) on the withdrawal of their retirement funds, in addition to the tax levied as per SARS’ Tax Tables.
Who wouldn’t love a salary increase of over 5% this year? Most employees would be happy with a raise that keeps up with inflation. But in 2025, even an inflation-related increase might not be enough to keep up with the rising cost of living as the taxman is taking a bigger bite out of your […]
A recent Supreme Court of Appeal (SCA) ruling should deliver a stark warning to businesses claiming input VAT deductions without a watertight legal foundation. In Aveng Mining Shafts & Underground v CSARS (1192/2023) [2025] ZASCA 20, the SCA sided with SARS, disallowing almost R17.5 million in VAT input claims for employee accommodation and food expenses.
The 2025 Budget had some good news about lessening the tax liabilities for South Africans seeking career, business and lifestyle opportunities abroad. Government’s intention to expand its tax treaty network and renegotiate some existing treaties to double taxation agreements (DTAs) is a welcome step, as these treaties are one of the key enablers for mobile […]
The 2025 Budget Speech, which finally took place on 12 March 2025, confirmed R7.5 billion to be allocated to resourcing of the South African Revenue Service (SARS), aimed at “broadening the tax base and improving administrative efficiency”.
The concept of a “bona fide inadvertent error” is a critical yet regrettably undefined term within the Tax Administration Act, No. 24 of 2011 (“TAA”). Section 222(1) of the TAA states that an understatement penalty is only applicable if the understatement does not arise from a “bona fide inadvertent error“.
The shocks, surprises and shortfalls in the initial Budget that never saw the light of day on 19 February, made way for a reworked National Budget marked by cuts, compromises and curveballs. Although Finance Minister Enoch Godongwana’s first Budget attempt three weeks ago was unexpectedly stopped in its tracks, mainly because several partners in the […]