Tax Talk
Welcome to Tax Talk – your go-to space for insights, updates and expert commentary penned by our team. Here you’ll find articles on everything from the latest SARS regulations to smart compliance tips and tax-saving strategies.
Your will is only part of the plan
Signing a will is not the end of estate planning. It is the starting point. It may be worth taking a closer look at the bigger picture – your assets, liabilities, family circumstances, business interests, trusts, tax exposure and, importantly, the liquidity your estate will need when the time comes.
Making money on the side? Don’t sideline the tax
From freelance work after hours and selling products online to driving for an app, renting out a room or earning money from social media, side hustles have become a useful way to bring in some extra income.
But there’s one extra partner you may not have factored into your venture: SARS.
A school reunion, a business sale and an unexpected tax lesson
After years spent building a business, the last thing you want is to discover the tax consequences when the sale agreement is already on the table. Selling shares, selling the underlying assets or taking the proceeds as a distribution may lead to very different tax outcomes. And for qualifying small business owners, there are valuable CGT concessions that are easily overlooked.
PAIA Compliance: The “Forgotten” Law Is Getting Teeth
For years, many businesses treated PAIA as a once-off admin task. Prepare a manual. Put it in a folder. Maybe upload it to the website. Forget about it.
That approach is becoming risky.
The Information Regulator is placing renewed focus on PAIA compliance, and the message is clear: businesses must be able to show that they have more than a template document. They need a working process.
Employment of Foreign Nationals: Increased compliance risk for South African employers
South African employers should take note of the renewed focus by Government on the employment of foreign nationals, particularly in circumstances where employees may not have valid documentation authorising them to work in South Africa. Although certain proposed penalties and quota rules are not yet final law, employers should not wait for the legislation to be enacted before reviewing their compliance position. Existing immigration legislation already places clear obligations on employers who employ foreign nationals.
Prescription Rules: When does tax debt expire?
Debt is one of the most unfortunate aspects of life that everyone ultimately deals with. Where normal consumer debt generally prescribes after three years, tax is somewhat different. For one, should you be sequestrated, the South African Revenue Service (“SARS”) is a preferential creditor and will be paid before many other debts are settled. But what is the legal timeline SARS has to pursue you for the recovery of outstanding tax debt?
Foreign Pension Update
The workshop centred on the proposed repeal of the foreign pension exemption in section 10(1)(gC)(ii) of the Income Tax Act. This exemption currently allows South African residents to receive certain foreign pensions tax-free. Our sense is that Treasury may move toward a compromise model similar to section 10(1)(0), which introduced a R1.25m tax-free exemption threshold and taxation only above that level. This would protect retirees with modest pensions but still capture tax on larger foreign pensions.
Estate Planning: Why it matters and how to do it right
Estate planning is one of the most important steps you can take to protect your family’s financial future. Without a proper plan in place, your loved ones could face unnecessary stress, disputes, or financial hardship after your death.
Good estate planning goes beyond simply drafting a will. It requires specialised legal and financial guidance to make sure your assets are identified, protected, and distributed according to your wishes – and in a way that is both tax-efficient and legally sound.
The role of an executor: Protecting your estate and your heirs
Appointing the right executor to administer your estate is one of the most important decisions you will make in planning for the future. An executor acts in your place once you are gone, ensuring that debts are settled, assets are safeguarded and your estate is distributed according to your will and the law.
Choosing wisely can mean the difference between a smooth, respectful process for your loved ones and a drawn-out, stressful experience.
Living Wills vs Last Wills: What you need to know
A last will and testament serves as a vital estate-planning instrument that outlines our desires following our passing. This document is crucial for individuals possessing assets or wealth. Conversely, for those facing a significant illness, a living will is invaluable as it records our preferences regarding medical treatment during our lifetime. While a last will and testament addresses the distribution of our assets after death, a living will is distinct in that it communicates our medical care preferences while we are alive but unable to express them directly.
Letter to SARS: Comment on Draft Taxation Laws Amendment Bill, 2025
Dear Sir / Madam, Comment on Draft Taxation Laws Amendment Bill, 2025 – Removal of Foreign Retirement Fund Exemption (s10(1)(gC)(ii)) Introduction We thank SARS and National Treasury for the opportunity to comment on the proposed repeal of section 10(1)(gC)(ii) of
Beneficiaries and their inheritance
When a person passes away, their assets – whether movable (like money or cars) or immovable (such as property) – are distributed to the beneficiaries named in their valid will (testate succession). Sometimes, the will specifies that assets must be divided among heirs, such as siblings, and that the remainder should pass to their children. In these cases, questions often arise about how inheritance can be fairly shared and whether assets can be rearranged among heirs.
Draft Tax Bill 2025: Key changes impacting Individuals, Companies and Trusts
On 16 August 2025, National Treasury and SARS released the Draft Taxation Laws Amendment Bill (TLAB), 2025, together with the accompanying Explanatory Memorandum. The proposals are open for public comment until 12 September 2025, after which a revised Bill will be tabled
Understanding Medical and Disability Deductions
Medical expenses can be a significant part of a household’s budget, particularly for families with chronic illnesses or disabilities. The South African Income Tax Act provides relief in the form of medical scheme fees tax credits and additional tax deductions
Why “bona fide” employee bursaries still beat a cash raise
Section 10(1)(q) of the Income Tax Act lets employers fund staff education (or their children’s/relatives) without triggering PAYE, while still claiming a normal business deduction. Get the paperwork wrong, though, and the “bursary” becomes a taxable fringe benefit. Similar deductions are claimable under Section 10(1)(qA) for disabled employees. Its worth pointing out that this deduction is not limited to employees but to any person, providing the rules are followed.
COIDA Return of Earnings deadline extended
The filing season for 1 March 2024 to 28 February 2025 is now open, and the COIDA submission deadline has been extended to 31 July 2025. Submissions made after this date will incur a 10% penalty for late submissions. So,
Working offshore or abroad? Here’s how to qualify for a tax exemption
If you’re a South African tax resident working outside the country — whether on a ship, in a specialised role abroad, or on secondment for your employer — you might qualify for a tax exemption on your foreign income. South
Practical applications of the new VAT increase from 15% to 15.5%
The recent increase in VAT by 0.5% has significant implications for businesses and individuals, particularly for ongoing transactions that have not yet been completed. Understanding the “time of supply” is crucial, as it determines when VAT liability is triggered. The
An overview of the 2025/26 Budget: Navigating Fiscal Challenges Amidst Political Dynamics
South Africa’s 2025/26 budget, presented by Finance Minister Enoch Godongwana on March 12, 2025, comes at a pivotal time for the nation. The budget’s unveiling was notably delayed due to internal disagreements within the coalition government, particularly concerning a proposed
Foreign Pensions and South African Tax: Understanding the Current Landscape
The 2025 Budget Speech confirmed the government’s intention to amend the cross-border tax treatment of retirement funds.
Making the most of your Retirement Annuity
Retirement Annuities (RAs) remain one of the most effective tools for South Africans looking to save for the future while enjoying significant tax advantages. Beyond building long-term wealth, RA’s offer a range of tax benefits that can make a substantial
Salary vs Dividends: When should companies allocate payments to shareholders?
For companies deciding how to allocate payments to shareholders, understanding the tax implications of salary versus dividends is essential. Each option has unique advantages and tax consequences that can significantly affect both the company and the individual shareholder. This is
Tax planning for February 2025: optimising expenditure
As the end of the financial year approaches for companies with a February 2025 year-end, it is crucial to plan strategically to minimise taxable profits. One effective way to achieve this is by reviewing and incurring qualifying expenses before the
Unlock tax benefits while giving back: how section 18a donations can work for you
Taxpayers looking to make a difference in their communities while optimising their tax positions can do so through donations to Section 18A (s18A) charities. These donations not only support crucial public benefit initiatives but also offer valuable tax deductions. Under