Written by Roulon du Toit CA (SA)

Both executive directors and non-executive directors (NEDs) may earn income from the companies in which they hold office. However, the tax treatment of these earnings—and the related expenses incurred—vary greatly between these two types of directors. In 2017, SARS released two Binding General Rulings (numbers 40 and 41) which provided more clarity on the treatment of NEDs.

Written by Roulon du Toit

A lot of South African taxpayers are unaware that they could reduce their taxable income if they made donations to Public Benefit Organisations. When a South African resident makes a donation, it is important to realise that there are tax consequences which may lead to either an increased tax burden or tax relief.

First, it is important to note that donating may attract a Donations Tax liability. This is something that taxpayers are unaware of and can be quite costly. We will not be exploring this in this blog, but be aware that if you donate cash (or any other asset) there may donations tax, especially if the value exceeds R100 000. For example, if you purchase a car and then transfer ownership to your child it will likely attract Donations Tax.

Tax-deductible business expenses are any expense incurred in the production of income or in the running of the business.

For example, stock bought for resale is considered a business expense or stationery bought for the office is also considered a business expense. You must keep a record of these business expenses.

When it comes to decreasing your VAT bill in South Africa, it's crucial to adhere strictly to legal methods and maintain meticulous accounting records. While it may be tempting to look for shortcuts, any attempt to evade taxes illegally is not worth the risk and can lead to severe penalties.

If your business's turnover exceeds one million rand in a 12-month period, VAT registration is mandatory. Ensuring you claim the maximum possible inputs can significantly reduce your cash outflows.

In the rapidly evolving world of business, staying ahead of the curve means embracing tools and technologies that streamline operations and drive growth.

As your accountants, we're always on the lookout for ways to help you achieve greater efficiency and success while reducing your admin overheads and stress!

On June 4, 2024, the South African Revenue Service (SARS) made a significant announcement regarding the 2024 income tax return filing dates for both individual and trust taxpayers.

This update marks a big shift, particularly for trust taxpayers, who will now experience a dedicated filing season distinct from that of individual taxpayers.

Traditionally, the filing season for trust taxpayers in South Africa coincided with that of individual taxpayers.

Auto-assessments notices start on the 1st of July until the 14th of July. The tax season officially opens on the 15th of July 2024 and closes on the 21st of October for non-provisional taxpayers and 20 January 2025 for provisional taxpayers.

If you want to know if you are a provisional taxpayer, you can either see this on your assessment from prior year or you can ask us 😊

Here’s a date for your diary - 24th of May, 2024. Now, that’s a rather important date if you hold a 5% or greater stake in a company in South Africa as it’s the last date to register under the newly introduced Beneficial Ownership Register. Failure to register if you should will be seen as a breach of the Companies Act and could result in fines being levied.

So what’s this all about, and what is Beneficial Ownership?

Managing a business involves a lot of responsibilities, with payroll management being one of the most critical. Understanding the intricacies of the payroll system in South Africa is essential for compliance and smooth operations, whether you're a startup or a seasoned business operator.

Here's a simplified breakdown of the payroll process.

As the start of a new tax year approaches, it’s time to shift our focus towards effective tax planning and ensuring a smooth filing process when the time comes.

For South African taxpayers, this means being proactive about retirement annuity contributions and keeping track of important documents as well as remembering to track your travel if you receive a travel allowance.

With filing season typically kicking off in July, now is the perfect time to get organised and stay ahead of the game.