Is your trust tax compliant? What SARS knows about your trust and what it will cost you
By Suzanne Smit SARS has for some time been drawing the net tighter around trusts and it is now hauling it in. Following a Government Gazette notice published on 27 March 2026, SARS has introduced fully automated administrative penalties for trusts that have failed to submit their income tax returns. This is not a future […]
2026 Budget Speech: What you should know
Minister Godongwana’s tax proposals signal a shift in focus by government. Rather than introducing shocking new tax rates (2025 with three budget proposals was only but last year), the changes refine technical areas of legislation, close planning gaps and aim to encourage regulated savings. Generally personal income brackets were adjusted for inflation. The implications on specific changes discussed […]
South African tax in 2026: What to expect
As we move into 2026, SARS Commissioner Edward Kieswetter’s term is coming to an end, with the current compliance-driven approach at SARS expected to continue. He has been a stalwart of compliance in a digital and very much global era, and we are excited to see who will take the reins from him. We do […]
Taxation Laws Amendment Bill, 2025 (TLAB)
1. Foreign pensions: Section 10(1)(gC)(ii) currently exempts any lump sum, pension or annuity received by or accrued to a South African tax resident from a source outside of South Africa. It is proposed that this section is deleted from the Income Tax Act 58 of 1962 to ensure that foreign retirement benefits received by South […]
Budget 2.0
19 February 2025 will forever be a date to remember in SA – this is when the Government of National Unity (GNU) flexed its muscles and, for the first time in our history, the Budget Speech was postponed. In doing so an unprecedented 2% VAT hike was averted and much-needed public and political participation ensued. […]
Who (or what) emerged as king? An analysis of the Coronation-case:
The Constitution Court (“the Court”) had the final word on the Coronation Investment Management SA (Proprietary) Limited (“Coronation SA”) v Commissioner for the South African Revenue Service (“SARS”) case on 21 June 2024. The matter dealt with the Income Tax Act’s section 9D-exemption in relating to foreign subsidiaries of South African-based companies, i.e. controlled foreign […]
Budget Speech 2024: The unspoken words are louder
2024’s Budget Speech was as predictable as the sun rising in the east. No bracket creep, no increases, no risks taken in an election year. Despite the current economic climate, no stimuli was introduced to attract foreign investment which could lead to a broadened tax base. Quite worryingly, the piggy bank was broken open and […]
What is “exit tax” and when should I take it seriously?
When a South African tax resident ceases tax residency (e.g. emigrating on a permanent basis), there is a deemed disposal of his / her worldwide assets in terms of Section 9H of the Income Tax Act the day before cessation of South African tax residency for an amount equal to the market value of the […]
How do I externalise funds from South Africa – the new TCS process
Following the end of “emigration” as an exchange control concept in 2020, several changes have been effected by SARS and specifically its Tax Clearance Status (“TCS”) application process. The previous MP336 application which related to “emigration” was notorious for its red tape. It is trite that each taxpayer 18 years and older has a single […]
Another not-so-rosy incentive
The proposed tax relief for alternative energy included a rebate for individuals of the lower of 25% of the cost of solar panels or a maximum rebate of R15 000 regardless of the total cost of solar panels. This means that R60,000 would be the maximum amount of total spent on solar panels to potentially […]