Introduction Many South African companies make a living by providing goods and rendering services in Africa. Where these companies are vendors, VAT is ordinarily levied at 0% on these foreign supplies; which assists to ensure that there is no VAT leakage.
On 4 May 2020, the Minister of Finance issued a telling directive in Government Gazette No. 43266, in terms of which “services required to comply with an obligation imposed by or to exercise a right in terms of a tax Act” are expressly included within the ambit of “essential financial services”.
Here comes the rain again With 1 March 2020 being the sunrise of the expatriate tax, the first tax payment will become due 31 August 2020.
The COVID-19 outbreak has propelled countries around the world to implement strict measures to combat the virus. President Cyril Ramaphosa imposed minor restrictions on gatherings and alcohol sales as a start.
A made-up story With all kinds of information regarding expatriate tax going around, seafarers and yachties (referred to jointly as seafarers hence forth) have been the ones who have been on the receiving end of the most confusing and contradicting guidance.
The slowdown in business activities due to the outbreak of COVID-19 may offer a golden opportunity for most companies and individuals to review their tax affairs and to determine what their tax practitioners has done.
Many South Africans had to scramble to set up a home office when the country went into lockdown at the end of March in an effort to curb the spread of Covid-19. When the lockdown was extended by another two weeks, employees started asking questions about the expenses they have been incurring while working from home.
As more South Africans work from home during the coronavirus pandemic, the question arises of whether they qualify for tax deductions.
Following announcement of the actions taken by government to combat the COVID-19 crisis, many South Africans may be aware of the proposed tax measures that are effective from 1 April 2020.