Tax Planning for 2027: How South African Companies and SMEs Can Prepare Now
Most South African companies don’t lose money on tax through poor bookkeeping or non-compliance, but through timing. A wear-and-tear allowance not claimed before an asset purchase falls into the wrong financial year. A provisional tax estimate padded upward “to be safe”, tying up cash that could have been working in the business. A shareholding or […]
Looks Right, But Isn’t? Why SARS Auto Assessments Go Wrong
During auto-assessment periods, taxpayers who receive a SARS auto-assessment can submit a corrected return if something is inaccurate or missing. This happens more often than one may think; therefore, it is by no means that one can assume that the return is complete. One of the most commonly overlooked corrections involves a contribution to a […]
Claiming Medical Scheme Tax Credits
Belonging to a registered medical scheme doesn’t just protect your health. It also comes with a built-in tax benefit. SARS refunds part of what you pay in medical scheme contributions through a system of tax credits, lowering your overall tax bill simply for staying covered. Do you know how it works, and if you qualify, […]
Confusion Around Foreign Retirement Lump Sums
SARS issued two Binding Private Rulings (BPR 421 and BPR 422) on 26 November 2025, both dealing with South African tax residents receiving lump sums from foreign retirement funds. At face value, the scenarios appear almost identical. Yet, the tax outcomes differ significantly. One possibility is that the two BPRs were drafted by separate members […]
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 […]
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 […]
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 […]
Navigating the Complex World of Taxes: A Guide for Businesses and Individuals
Taxation is a part of everyday life, whether you’re running a business or managing personal finances. But the complexities of tax regulations can sometimes be challenging to understand. Whether you’re trying to keep your business compliant with the law or looking for ways to minimise personal tax burdens, a solid understanding of taxes is essential. […]
Claiming Foreign Tax Credits
Back in the day when I was still running my tax practice full-time, I was called upon by a client to assist with the tax and accounting treatment of taxes withheld by a foreign country from income earned in that country—in this particular case, Botswana. The client’s query centred on the following two issues: The […]