Understanding Residency in Terms of Tax
When earning an income in South Africa, you are probably paying tax. The Income Tax Act 58 of 1962 (“the Act”) describes gross income as: “(i) in the case of any resident, the total amount, in cash or otherwise, received by or accrued to or in favour of such resident; or (ii) in the case […]
CGT and Unit Trusts: When Are You Liable?
What are the Capital Gains Tax implications of investing in unit trusts? Unit trusts, or collective investments to give them their proper name, have long been popular investments, particularly for the ordinary investor. The main reason for this is that for a fairly small amount of money, one can gain access to a fairly diversified […]
Four Tips for Navigating the ‘Two-Pot’ Pension Rules
South Africa changed its pension laws with effect from 1 September 2024. The new system is designed to give individuals the opportunity to access only a portion of their retirement funds before they retire, in the case of dire need, or even in case of desire. To an extent, this makes sense, given the low […]
Ten Easy Ways to Save Tax
No fancy schemes, loopholes, or expensive lawyers required – and it’s all perfectly legal! Paying tax is a legal responsibility, but that doesn’t mean you can’t make the most of legal avenues to reduce your tax burden. SARS provides a number of tax-efficient strategies that individuals and businesses can use to reduce their taxable income. […]
Simplify Your Accounting and Payroll for a More Profitable Business
Running a business in South Africa comes with its fair share of challenges, especially when it comes to managing finances. Between complex tax regulations, payroll headaches, and the constant pressure to stay compliant, many business owners find themselves drowning in paperwork instead of focusing on growth. If you’re struggling to keep up with accounting demands […]
Banking Fraud and Estate Administration – The Case That Put Banks on Notice
In a landmark judgment delivered by the Western Cape High Court recently, the court made it clear that banks cannot escape liability when they pay estate funds to the wrong person, even when that person presented themselves as the lawfully appointed executor of a deceased estate. The case of Turner NO v Standard Bank of […]
What’s In a Name?
The differences between an allowance, an advance, and a reimbursement are critical when it comes to tax. What’s the difference between an allowance, an advance, and a reimbursement? To many people, these are different terms for the same thing, but to SARS, the category that a payment falls into is critical when it comes to […]
Protect Your Family’s Assets with Effective Estate Planning
Make sure your assets are managed and distributed according to your wishes. Estate planning is an important step in protecting your family’s future and avoiding any unnecessary complications. Here’s a simple guide to the key steps involved in the process. By following these steps, it is possible to create an estate plan that protects your […]
Handling Payroll for Freelance Workers in South Africa
Managing payroll for freelance workers involves a few key points, including understanding legal requirements, setting clear payment structures, and using the right tools. Here’s a practical overview to help businesses handle freelance payroll effectively. Legal Obligations Freelancers are generally considered independent contractors, but businesses still have some legal responsibilities. 1. Tax Obligations Freelancers are responsible […]
Long-Term Goals, or Short-Term Gains?
More than a million applications have already been lodged with the South African Revenue Service (SARS) to pull funds out of their savings. Given that this amounts to R21.4 billion, that’s a frightening amount of money for a country that doesn’t have a savings culture. By the time of this article’s publication, this figure has […]