Tax insights

15 Jul 2026

Out with the old and in with the new

The VAT Act contains specific provisions that deal with electronic services supplied in South Africa by non-resident entities. These provisions were first introduced in 2014 with subsequent amendments to both the VAT Act and the Electronic Services Regulations being introduced over the years. In 2019, amendments were made whereby the scope of services that were included in the definition of electronic...

15 Jul 2026

Income tax deduction

Section 23H of the Income Tax Act No. 58 (1962) plays a critical role in regulating the timing deductions for prepaid expenditure. While taxpayers are generally permitted to deduct expenses in the year in which they are incurred, section 23H limits the allowable deduction in certain instances.

15 Jul 2026

South Africa’s mining sector

South Africa’s mining sector, long a cornerstone of the national economy, is entering a decisive decade. Intensifying climate regulation, rising carbon prices and fast-evolving energy markets are forcing mining companies to embed decarbonisation into core business strategy rather than treating it as a peripheral ESG exercise. Recent legislative reforms and market developments now provide both pressure...

26 May 2026

Lessons from Tanzania’s Amadeus Case

In transfer pricing disputes, taxpayers and revenue authorities often appear to be speaking the same language while relying on different rulebooks. Multinational groups typically develop transfer pricing policies with reference to the Organisation for Economic Co-operation and Development Transfer Pricing Guidelines (“OECD Guidelines”), while tax authorities and courts are ultimately guided by domestic...

26 May 2026

PAYE health checks as a value-adding exercise

For many employers, employees’ tax or Pay-As-You-Earn (PAYE) compliance is a routine administrative function. SARS has intensified its focus on employees’ tax compliance, with scope of audits including the examination of the detailed treatment of benefits and allowances.

26 May 2026

Pre-transaction restructuring strategies

In today’s transaction environment, tax is no longer a downstream consideration but a vital component of deal value, execution certainty and post transaction sustainability.

20 Apr 2026

Crossing borders, crossing fingers

Despite a general environment of political instability, significant government debt, and a relatively volatile currency, South Africa remains a sought-after emerging market destination for foreign investment. In an M&A context, foreign investors are often uncertain of the South African tax consequences of providing debt and equity funding to South African businesses. This article explores the basic...

20 Apr 2026

An overlooked tax risk in M&A

Tax due diligence reviews often focus on well‑trodden areas such as corporate income tax, VAT and payroll compliance. Intercompany transactions, however, are rarely given much attention beyond perhaps a high-level analysis and a cursory review of the transfer pricing policy for cross border transactions.

20 Apr 2026

Taxing the digital dice

As betting increasingly shifts to digital platforms, South Africa is approaching a pivotal moment in determining how to tax the rapidly expanding online gambling industry, where bets are placed instantly and often anonymously.

20 Apr 2026

SARS Interpretation Note 139

The South African Revenue Service (“SARS”) issued Interpretation Note 139 (“IN 139”), on 22 August 2025. IN 139 provides SARS’ interpretation of the income tax treatment of amounts paid to individuals who perform religious or related activities. Although IN 139 refers to “missionaries”, its application is significantly wider. In substance, it applies equally to pastors, ministers of religion, church...

27 Mar 2026

Special economic zones in South Africa

Budget Speech 2026 signals a strategic reset and transfer pricing discipline

27 Mar 2026

Interest remission and voluntary disclosure

In the Budget Speech delivered on 25 February 2026, National Treasury highlighted a proposed change to the Voluntary Disclosure Programme (VDP) following a landmark judgment which precluded the remission of interest after the conclusion of a VDP agreement had been finalised.

27 Mar 2026

Why small businesses are breathing again

The 2026 Budget Speech brings a major and long overdue win for small businesses in South Africa. After 16 years of no change, the compulsory Value-Added Tax (“VAT”) registration threshold has been increased from R1 million to R2.3 million, with the change taking effect on 1 April 2026. The voluntary VAT registration threshold has also been raised, increasing from R50 000 to R120 000, also effective...

27 Mar 2026

Undisputed tax debt collection realities

The Minister of Finance confirmed in the 2026 Budget Review that several revenue streams, particularly VAT, corporate income tax and dividends tax, performed above expectation for the 2025/26 year. However, the overall picture is not uniformly positive. SARS fell R15 billion short of its taxdebt collection target, having collected R79.4 billion by 31 January 2026 against its planned trajectory.

27 Mar 2026

Higher tax-free investment adjustment

The 2026 Budget Speech delivered on 25 February 2026 brought welcome relief for both individuals and businesses. For the first time since the introduction of taxfree investments (“TFI”) in 2015, government has increased the annual contribution limit, giving taxpayers more room to grow their wealth. This adjustment strengthens the role of TFIs as accessible, tax-efficient savings vehicles and supports...

10 Mar 2026

SARS’ New Diesel Refund Platform

Expert guidance for a seamless transition.

14 Jan 2026

Pre-trade expenditure

There is often uncertainty regarding the tax treatment of expenditure incurred by companies prior to the commencement of trading, and none more so than where a taxpayer incurs foreign exchange differences, usually on funding from a non-resident. This article explores in more detail the basic principles in the tax treatment of these items.

14 Jan 2026

Investing in African mining

Africa holds 30% of critical minerals globally, and a fourfold increase in global demand is expected by 2030. With the right approach, investing in the African mining sector may yield a favourable return on investment. However, there are several factors that mining businesses should consider when expanding their footprint into Africa.

14 Jan 2026

A guide for executives to maximising tax savings

Retirement planning is not just about saving for the future; it’s a powerful tool for immediate and long-term tax savings that will form an important part of your wealth creation strategy.

17 Nov 2025

Transfer pricing adjustment

Imagine this...A well-prepared benchmarking analysis that is revised when necessary, a Local File, a Master File, and documentation to support all transfer pricing adjustments. Transfer pricing done and dusted. But is it the end of the road?

17 Nov 2025

Transfer Pricing 101

As multinational enterprises (MNEs) continue to expand their global operations, transfer pricing compliance has become a critical focus area for tax authorities worldwide.

17 Nov 2025

Are you ready for the new documentation era?

For years, Mauritius applied the arm’s length principle in theory, but without requiring companies to formally demonstrate compliance. This is now changing. The Finance Act 2025 introduces a mandatory transfer pricing documentation framework, marking a turning point for all businesses with cross-border related-party transactions

13 Oct 2025

IFRS and tax law’s awkward romance

References to International Financial Reporting Standard (“IFRS”) are littered throughout South African tax legislation. Its influence came under the spotlight on 3 September 2025, when National Treasury retracted its proposed draft tax amendments relating to hybrid equity instruments which sought to align the IFRS and tax treatment of certain preference shares. This article explores in more detail...

13 Oct 2025

Treaty override

The recent High Court decision in Nairobi Bottlers Limited v Commissioner of Domestic Taxes has sparked widespread discussion among international tax professionals, particularly for South African multinationals operating in Kenya. This landmark case highlights the practical impact of Limitation of Benefits (LoB) clauses and raises fundamental questions about the interplay between domestic law and...

13 Oct 2025

The tax trap behind assumed liabilities?

The so-called corporate restructure rules which include the roll-over relief provisions are contained in sections 41 – 47 of the Income Tax Act 58 of 1962 (“the Act”).

3 Sept 2025

Adequate reasons in assessments

In BCJ v Commissioner for the South African Revenue Service (2024/8) [2025] ZATC 7 (23 May 2025), a recent Tax Court judgment handed down on 23 May 2025, the court criticised SARS for failing to provide proper reasons when it disregarded a taxpayer’s capital gain following a group restructuring. While the court ultimately found in favour of the taxpayer on the substantive issue, the judgment is a...

3 Sept 2025

Aren’t all exports treated the same for VAT?

When it comes to VAT and the exportation of goods, people usually think, “exports are simple, you just zero rate it!” The exportation of goods is far more nuanced and if it were that easy, there wouldn’t be detailed legislation, interpretation notes and regulations on the matter.

3 Sept 2025

What will leaving South Africa cost you

Moving to another country can sometimes come with a lot of anxiety and decisions to be made. Decisive tax planning in both countries before your relocation can help mitigate against penalties and excessive taxes being paid in both countries. Leaving South Africa without obtaining proper tax advice may be a costly exercise.

5 Aug 2025

Personal service provider

In this article we examine the employees’ tax (PAYE) risks and reporting obligations for a person or entity when engaging with a personal service provider (PSP).

5 Aug 2025

South African Transfer Pricing

Lessons from the Commissioner for the South African Revenue Service (SARS) v SC (Pty) Ltd Tax Court Case

6 Aug 2025

What South African sellers should know

Indirect Exports offer valuable opportunities for South African businesses to expand internationally, but navigating the VAT regulations requires caution. When the foreign buyer takes responsibility for arranging transport, the supplier (also referred to as the seller) must meet specific criteria to apply a preferential VAT rate. One of the most crucial requirements is securing proper export documentation...

14 Jul 2025

Is currency too cryptic for vat?

The Value-Added Tax Act No. 89 (1991) regards certain activities pertaining to cryptocurrency as financial services. But what if the supply involves a crypto asset and not cryptocurrency?

14 Jul 2025

Standard Bank of South Africa v SARB and Others

On 15 May 2025, the High Court of Gauteng held that Leo Cash and Carry (Pty) Ltd were not in contravention of Exchange Control Regulations to the extent that this applied for the forfeiture of funds from their money market bank account.

14 Jul 2025

The revenue reckoning has arrived

The South African Revenue Service (SARS) has officially shifted gears in its approach to taxing crypto trading income. The SARS Crypto Asset Unit, established to monitor and enforce tax compliance in the digital asset space, has begun issuing assessments and audit notices to individuals, many of whom are only now realising that their crypto trading gains are taxable.

11 Jun 2025

Entertaining an input tax deduction

During VAT reviews, we often encounter vendors claiming input tax deductions for expenditure related to staff welfare, meeting refreshments, year-end functions and client lunches. Vendors contend that the expenditure is business-related and expended for purposes of trade.

11 Jun 2025

Getting in the corporate tax net is easy

Section 82 of the Companies Act No. 71 (2008) states that a company may be deregistered with the Companies And Intellectual Property Commission (“CIPC”) when the affairs of a company have been completely wound up, and it has ceased to carry on business.

11 Jun 2025

Common themes from a tax due diligence review

When considering the potential acquisition of another company’s shares, a key concern is the ‘tax health’ of the target entity or group.

14 May 2025

Independent contractor or employee?

The post-pandemic era has witnessed a dramatic escalation in the utilisation of independent contractors in hybrid working environments. Additionally, many job-seekers are looking more at flexible and contractual work to fit their private life demands.

8 May 2025

Foreign employment exemption

Following the change in the foreign employment exemption resulting in only a maximum of R1,25m of a resident’s foreign remuneration being exempt from income tax in South Africa, the South African Revenue Service (“SARS”) have enhanced their tax directive system to allow employers to apply for a directive to reduce the PAYE to be withheld from the remuneration paid to the employee that is also taxed...

12 May 2025

The proof is in the burden, not the pudding

The 2025 Fiscal Budget has allocated additional funding to SARS who will deploy these resources, inter alia, to pursue debt that is owed to the organisation and outstanding returns. These funds will also be used to modernise and strengthen SARS technological capability. Now, more than ever, taxpayers should make sure that their (tax) house is in order.

26 Mar 2025

Taxation of collective investment schemes

On 13 November 2024, National Treasury issued a discussion document setting out various proposals regarding a revised tax regime for Collective Investment Schemes (“CIS”). Public comment was called for by 13 December 2024, whereafter a workshop with relevant stakeholders was held on 17 January 2025.

26 Mar 2025

Adjustments made to the ETI remuneration criteria

The employment tax incentive (“ETI”) was introduced on 1 January 2014, to help incentivise South African employers to employ young people and provide skills and experience to young South Africans who are unemployed and possibly discouraged in finding employment opportunities.

26 Mar 2025

Tax Penalty Shake-Up: What it means for taxpayers

While the spotlight has predominantly been on the 2% VAT increase in what seems to be a conventional budget speech, it is crucial not to overlook the nuanced provisions embedded within the budget aimed at enhancing future revenue collections.

26 Mar 2025

South Africa’s 2025 budget review closes loopholes

The 2025 Budget Speech has proposed amendments to section 20A of the Income Tax Act No. 58 of 1962 (“the IT Act”) that will aim close existing loopholes by redefining the application of the ring-fencing rules. South Africa’s tax system has long grappled with the challenge of balancing legitimate tax relief with the risk of tax abuse. Section 20A of the IT Act was introduced to curb the improper use...

27 Mar 2025

Urban Development Zone Incentive

UDZ Incentives and Transfer Duty Adjustments: A Catalyst for Urban Renewal

27 Mar 2025

Updates to renewable energy tax allowances

National Treasury has not renewed the accelerated 125% capital allowance related to renewable energy assets. We explore below the remaining capital allowances available for renewable energy assets.

7 Mar 2025

Tax Due Diligence

“Navigating M&A with Tax DD: Trends, Grants, and Common Pitfalls" "Tax Due Diligence in M&A: Trends, Tips, and Tricks for Success"

7 Mar 2025

South Africa's Global Minimum Tax Act

In an increasingly globalised economy, multinational enterprises (MNEs) have become adept at leveraging differences in tax systems to minimize their tax liabilities. This practice, known as Base Erosion and Profit Shifting (BEPS), has led to significant revenue losses for countries worldwide. To address these challenges, the Organisation for Economic Co-operation and Development (OECD) and the G20...

7 Mar 2025

Tax court upholds SARS’ invalid objection notice

In X and Another v Commissioner for the South African Revenue Service (52/2023) [2024] ZATC 12 (2 December 2024), the Tax Court of South Africa dismissed an application made to the court seeking validation of the objection submitted to SARS.

11 Feb 2025

THE TAXATION OF COLLECTIVE INVESTMENT SCHEMES

On 13 November 2024, National Treasury issued a discussion document setting out various proposals regarding a revised tax regime for Collective Investment Schemes (“CIS”). Public comment was called for by 13 December 2024, whereafter a workshop with relevant stakeholders was held on 17 January 2025. We unpack our perspectives on the consultation process to date.

11 Feb 2025

Exchange control & transfer pricing requirements

Following an announcement made by the Minister of Finance in the 2024 Budget review, Circular 13 of 2024 came into effect on 26 November 2024. The circular addresses the changes made to exchange control ruling B.3(C) dealing with royalties and fees payable by South African resident entities to non-resident parties.

11 Feb 2025

A practical perspective on provisional tax

Provisional taxpayers are required to submit two bi-annual provisional tax returns in a tax year. The purpose of provisional tax is essentially a mechanism whereby normal income taxes are collected in advance.

6 Jan 2025

The burden of assessed losses

Section 20 of the Income Tax Act No. 58 (1962) (“IT Act”) provides for the utilisation of prior year assessed losses against taxable income derived by a company. Certain legislative limitations impact the quantum of the assessed loss that may be utilised by companies.

6 Jan 2025

The importance of a prescription period

The South Africa Revenue Service (“SARS”) has the ability to issue revised assessments in terms of the Tax Administration Act No.28 of (2011) (“TAA”). In this regard, SARS is bound by regulations with regards to the period in which SARS can issue revised assessments. This period is referred to as the ‘period of limitations for issuance of assessments’ or the so-called ‘prescription period’.

6 Jan 2025

Tax-exempt government grants

Section 12P of the Income Tax Act No. 58 (1962) (“IT Act”) plays a crucial role in fostering economic development by providing tax relief for certain qualifying government grants.

5 Dec 2024

The duality of loans to offshore trusts

The 2024 Taxation Laws Amendment Bill (“TLAB”) introduces amendments specifically addressing the interaction between section 7C and section 31 of the Income Tax Act No. 58 (1962). Section 7C deals with interest-free or low-interest loans to trusts, and section 31 governs transfer pricing in cross-border transactions. The aim is to provide clarity and ensure that lending to offshore trusts is treated...

5 Dec 2024

Taking the guesswork out of VAT

On 11 December 2023, the South African Revenue Service introduced the issuance of estimated assessments in respect of value-added tax.

5 Dec 2024

Trust reporting obligations expanded

Over the past few years, the South African Revenue Service (“SARS”) have been enhancing their information gathering tools and technical skills in respect of South African trusts.

11 Nov 2024

Just because it’s related

SARS has finally provided some long-awaited guidance on the meaning of the term ‘similar finance charges’. In this article, we unpack the draft Interpretation Note issued in September 2024, to help you understand how SARS is likely to interpret this definition going forward.

11 Nov 2024

Navigating a tax due diligence

Whether you are a seasoned tax professional or new to the field, navigating a tax due diligence process can be a complex and daunting task. This article offers our insights and practical advice to help you navigate the intricacies of a tax due diligence.

11 Nov 2024

Tax advice – a thistle between the thorns

In determining a tax liability, the taxpayer will generally take a number of tax positions. To avoid tax disputes and the imposition of understatement penalties, it would be prudent to consider obtaining tax advice before a tax position is taken.

8 Oct 2024

Demystifying the Tax Control Framework

It is not easy being responsible for the tax function of a business in South Africa. The chances are that there are insufficient tax resources and that the tax function is perceived simply as a back-office compliance cost centre.

8 Oct 2024

The real cost of green for the mining sector

According to the 2023 South African Energy Sector Report, the primary source for South Africa’s energy supply is still coal. Renewable energy contributed only 1% to the total energy supply in 2021, while 80% of domestic energy production was generated by domestically produced coal.

8 Oct 2024

Key Insights from Binding Private Ruling 410

The South African Revenue Service (“SARS”) issued Binding Private Ruling 410 (“BPR 410”), providing insights into a technical aspect of South African income tax law concerning controlled foreign companies (“CFCs”) and their interaction with various sections of the South African Income Tax Act. Released on 11 September 2024, this ruling clarified the income tax and capital gains tax (“CGT”) consequences...

2 Sept 2024

When it all comes to naught

With the growth in cross-border transactions, it is anticipated that the supply of goods and services to non-resident companies will increasingly be scrutinised by the South African Revenue Service. Therefore, it is important that South African vendors familiarise themselves with the requirements of the value-added tax provisions relating specifically to supplies made to recipients that are not residents...

2 Sept 2024

Managing tax for SA mining expatriates:

South African expatriates working abroad in the mining industry must deal with complex tax challenges due to the interplay of South African tax laws and those of host countries.

29 Aug 2024

The ins and outs of input tax

The 2024 Draft Taxation Laws Amendment Bill (“2024 draft TLAB”) was published on 1 August 2024. It proposes that legislative amendments be effected to require input tax deductions to be claimed in the original tax period in which the entitlement to the input tax deduction arose.

17 Jul 2024

What do the changes mean for your retirement?

Originally announced by the National Treasury in their National budget address in February 2021, it was proposed that changes were to be made in the retirement savings system of an individual to try and encourage saving for retirement and to prevent South Africans from purposefully resigning when facing financial hardship in order to access their retirement funds. The proposed changes aim to promote...

SARS issues long awaited guidance

On 17 January 2023 the South African Revenue Service (SARS) issued Interpretation Note 127 (IN 127) providing long awaited guidance as to the treatment of cross-border intra-group funding transactions for transfer pricing purposes.

Checking on your tax residency status

If you have been living outside of South Africa for an extended period of time or regard yourself as a person who has emigrated from South Africa, this document is important for you to read.

Change in use adjustment: Residential property

It is proposed that changes be made to the VAT Act by the insertion of section 18D which will deal with the deemed change in use adjustment required when a dwelling is let for the first time if the dwelling remains permanently in the scope of VAT and the deemed supply made when the dwelling is subsequently sold. Section 18D is proposed to come into effect on 1 April 2022.

PBO fiduciary responsibilities

Have you accepted the responsibility as a fiduciary representing a Public Benefit Organisation (“PBO”) and do you know what you are responsible for?

Is there a tax benefit to working from home?

Since the forced lockdown experienced in 2020, many employees have had to work from home. In some instances, due to a shift in corporate culture, employees have chosen to continue this practice by no longer travelling to a fixed office on a daily basis. In some cases people have converted space at their home to function as their home office.

SARS should give crypto investors more carrot

It has been more than three years since SARS’s media statement on cryptocurrencies. In this statement SARS stated that it will apply “normal income tax rules” to cryptocurrencies when assessing whether a gain is revenue or capital in nature and that crypto assets are not seen as currency for income tax purposes.

Alert for those earning rental income

With the global online age it is easy for a taxpayer to advertise and rent out part of their home, or investment property, to paying guests. Many people are using online platforms, who can then monitor booking and assist with the logistics in the collection of the rental income. As easy as it is for a home owner to add his property to such an online site, so, can SARS, as the “prospective” renter,...

SARS: multinational entities & transfer pricing

On 31 August 2020, the South African (“SA”) Tax Court delivered judgement in the case referred to as SARSTC 14302. The court ruled against the taxpayer in respect of an application for discovery of documents relating to an underlying transfer pricing assessment matter. The case, as well as the underlying transfer pricing dispute, are briefly summarised below.

Transfer Pricing: SARS opens the door to APAs

An APA is an agreement between a taxpayer and SARS in terms of which the transfer pricing methodology for the pricing of a taxpayer's cross-border related party transactions are determined in advance for future years.

Extension of deadline Country-by-Country Returns

On 12 November 2020 the South African Revenue Service (SARS) issued a notice extending the deadline for the submission of Country-by-Country Returns (CbCR) under Notice No. 1117 published in Government Gazette No. 41186 dated 20 October 2017, for Reporting Fiscal Years commencing before 1 March 2020.

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