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The Income Tax Implications Of Debt Write-Offs
2019

The Income Tax Implications Of Debt Write-Offs

Where a creditor and a debtor enter into an arrangement whereby debt is cancelled or waived, such an arrangement is a concession or compromise as defined in the Income Tax Act. A concession or compromise is a debt benefit which carries income tax consequences.

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Vat Implications Of Services Provided To Non-Residents
2019 - 2019-07-22

Vat Implications Of Services Provided To Non-Residents

The South African VAT system is destination-based. This means that VAT is levied on the consumption of goods and services within the borders of South Africa. It follows then that goods and services supplied by VAT vendors where consumption takes place outside of South Africa and where benefit is enjoyed outside South Africa, is subject to VAT at a rate of zero per cent.

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Vat On Electronic Services Provided By A Foreign Group Of Companies
2019 - 2019-07-22

Vat On Electronic Services Provided By A Foreign Group Of Companies

The VAT Act provides that VAT be levied on imported services. Of late the focus has been on Electronic Services provided by non-residents to residents. Examples of these electronic services will be the provision of cloud computing as well as online services.

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Withdrawals From Retirement Annuity Funds, Preservation Pension Funds And Preservation Provident Funds Upon Emigration
2019 - 2019-06-05

Withdrawals From Retirement Annuity Funds, Preservation Pension Funds And Preservation Provident Funds Upon Emigration

Prior to the change in tax legislation effective from 1 March 2020, South African tax residents who are employed outside of South Africa were (subject to certain criteria) exempt from South African tax on their foreign earnings. From 1 March 2019 the maximum exemption from tax has been limited to the first R1M in taxable income.

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2019 - 2019-05-01

Dividents Versus Returns of Capital made by Companies

Not all distributions made by companies to their shareholders constitute dividends for purposes of the Income Tax Act No. 58 of 1962. To the extent that a distribution made by a company reduces the “contributed tax capital” (a concept defined with reference to inter alia the subscription consideration received by the company on the issue of shares) of a company, such would may give rise to a “return of capital” as opposed to a dividend.

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2019 - 2019-05-01

Reportable Arrangements:: Expansion of Listed Reportable Arrangements

Section 35 of the Tax Administration Act No. 28 of 2011 (“the TAA”) sets out the circumstances in which an arrangement would constitute a “reportable arrangement”. A “reportable arrangement” does not in itself give rise to a tax liability, but may give rise to the compilation of a cumbersome and onerous report for submission to SARS – the failure of which could give rise to significant penalties.

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2019 - 2019-05-01

Expecting Expat Tax

All South African tax residents working abroad should be considering whether they may be impacted by tax law changes which will enter into force on 1 March 2020.

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2019 - 2019-02-21

2019 Budget Speech Highlights

On 20 February 2019, Tito Mboweni, Finance Minister delivered his 2019 Budget Speech. Hereby a short summary of some of the significant points and proposals for the 2019 Budget as tabled by the Minister of Finance:

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2019 - 2019-02-01

PKF International Welcomes New Member Firm in George, South Africa

PKF International Limited has reinforced its presence within South Africa with the admission of independent member firm PKF George.

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2019 - 2019-01-18

Ring-Fencing of Assessed Losses of Certain Trades

Persons are generally allowed to set off any losses incurred in respect of one trade against the income derived from another trade, thereby reducing their overall tax liability.

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