Reduction in Corporate Income Tax Rate
On 23 February 2022, during the budget speech, the Minister of Finance announced that the corporate income tax rate would be reduced from 28% to 27%. The changes would be effective for years of assessment ending on or after 31 March 2023. Therefore, the following changes will take place for Companies and Small Business Corporations […]
Section 42: Asset-for-share Transactions
Section 42 of the Income Tax Act (58/1962) (the Act) provides for tax roll-over relief in respect of asset-for-share transactions. Such a transaction is an asset-for-share transaction if it meets all the following requirements: A person transfers an asset, other than a restraint of trade or personal goodwill, to a company; The market value of […]
Pension/Annuity Tax Deductions (PAYE)
SARS recently announced a new service for Tax Deductions (PAYE) for pensioners, which will come into effect on 1 March 2022. In essence, when a pensioner has only one source of income, the employee’s tax (PAYE) deduction system ensures the correct amount is deducted from their annuity or pension fund. Where a pensioner has more […]
Offshore structuring
CMV offers a specialised and expert offshore structuring and related tax planning service. The ‘loop structure’ exchange control regulations made offshore structuring for SA tax residents challenging – this has now been lifted! South Africa has lifted the prohibition on loop structures relating to individuals, companies, and private equity funds that are tax resident in […]
EXPAT TAX COMES INTO EFFECT 1 MARCH 2020
EXPAT TAX COMES INTO EFFECT 1 MARCH 2020 The amendments to the Income Tax Act come into effect on 1 March 2020. Currently, South African tax residents working abroad do not pay income tax in South Africa on foreign income earned. This applies if they have spent 183 days during a 12-month period abroad, with […]
BUDGET SPEECH 2020
Insights into the 2020 Budget Speech Does the Budget Speech affect you or your business? With Finance Minister Tito Mboweni’s 2020 Budget Speech, the sustainability of the future of South Africa’s economy took the front seat, by focusing on the changes both consumers and businesses can expect. Overall: The Finance Minister alluded to the reduction […]
TIPS FOR SMALL BUSINESSES TO SURVIVE YEAR-END
TIPS FOR SMALL BUSINESSES TO SURVIVE YEAR-END Financial year-end can be a highly stressful time for most businesses. When one considers everything that needs to get done, including compiling financial year-end reports, reviewing and analysing business trends, and strategic planning for the year ahead, it’s difficult not to feel overwhelmed. Small business owners, who tend […]
PROVISIONAL TAX IN SOUTH AFRICA
PROVISIONAL TAX IN SOUTH AFRICA Any individual who earns an income other than, or in addition to, a salary is a provisional taxpayer. Companies are also considered to be provisional taxpayers. There are, however, exemptions for individuals who earn income from other sources, such as: Income in a tax free savings account; Individuals under 65 […]
SARS PRINTED TAX CLEARANCE CERTIFICATE WILL NO LONGER BE AVAILABLE
SARS recently distributed a notification announcing the following: The issuing of the printed Tax Clearance Certificate (TCC) will be terminated after 25 October 2019, as we are implementing a more secure and electronic Tax Compliance Status (TCS) system. Since the implementation of the TCS system in 2015, we advised taxpayers that our goal was to […]
ANNOUNCEMENT: NEW SERVICE OFFERINGS
New Service Offerings: Financial Emigration | Offshore Structuring | Broad-Based Black Economic Empowerment CMV is proud to announce the addition of the following valuable services to our firm: 1. Financial Emigration The latest amendments to the ‘expat tax’ legislation is coming into effect from 1 March 2020. Currently, South African tax residents working abroad do not pay income […]