Legal Development

Tax Clearance Certificates – New SARS application process

Since 18th of April 2016, SARS has implemented a new Tax Clearance Certificate (“TCC”) application process. The new electronic system process, allows you apply for your tax clearance certificates in the following categories: Tender Good Standing Emigration Foreign Investments Tax Clearance Certificates – New SARS application process In the past to submit a TCC application, was always more of a prolonged process, including physical SARS branch visits, – as the application had to be submitted and the final outcome collected in person – to finally receive the long-awaited tax clearance certificate. Due to the upgraded new system, long waiting hours at SARS are finally part of the past. What is new? The new system allows that the whole application process can be handled on the SARS eFiling System entirely, where you can submit and check regularly the Tax Compliance Status (“TCS”) for all your tax types in future. […]

June 1st, 2016|Categories: Legal Development|Tags: , , , , |

Actions of deregistered companies have retrospective effect after reinstatement

by SONNENBERG & ASSOCIATES PROPERTY AND LEGAL ADVICE Many companies are deregistered daily by the Companies and Intellectual Property Commission (“CIPC”), usually as a result of the company’s failure to file its annual returns. Because neither the public nor the affected company are made aware of the actual deregistration, many third parties with no knowledge of the incapacity continue to transact with deregistered companies. Affected companies, unaware of their deregistered status, also carry on with business as if the deregistration has never occurred. But what effect do actions taken by a company, whilst being deregistered, have? In the recent Supreme Court of Appeal judgment of Newlands Surgical Clinic (Pty) Ltd v Peninsula Eye Clinic (Pty) Ltd (086/2014) ZASCA 25 (20 March 2015) , the court held that reinstatement of companies under the new Companies Act has automatic retrospective effect. […]

September 15th, 2015|Categories: Legal Development|Tags: , , , , , |

New Development Bank (NDB) – BRICS Bank

At a meeting held in Shanghai on the 21st July 2015, officials from the world’s largest emerging nations launched the New Development Bank, NDB, also known as the BRICS Bank. picture source: The NDB is the second of two new policy banks heavily backed by China, which are to be alternatives to existing institutions such as the World Bank. The NDB or BRICS Bank follows soon after the establishment of the also China-led Asian Investment Infrastructure Bank (AIIB). The new bank aims on funding infrastructure and development projects in the BRICS countries – Brazil, Russia, India, China and South Africa. Disagreements over the bank’s funding, management and headquarters had slowed it launch, which was proposed in 2012 and concluded in 2015. […]

August 25th, 2015|Categories: Legal Development, SA Economy News|Tags: , , , , , , , , |

Withholding taxes in South african law

by SONNENBERG & ASSOCIATES PROPERTY AND LEGAL ADVICE Various withholding taxes have been introduced to the South African tax system in the last few years, including 1. Withholding tax on foreign entertainers and sportspersons This tax is levied on foreign entertainers and sportspersons in terms of section 47B of the Income Tax Act 58 of 1962 (“the Act”), at the rate of 15% on amounts received by or accrued to a non-resident in respect of any personal activity exercised in South Africa; 2. Withholding tax on royalties Levied in terms of section 49B of the Act at the rate of 12% of the amount of any royalty paid by any person to a non-resident to the extent that it is sourced in South Africa; […]

August 12th, 2015|Categories: Legal Development, Social life / others|Tags: , , , , |

Modernization of capital flow management

The rules and conditions regulating capital flow continue to be modernized in order to attract investment and enable South African firms to expand internationally, particularly into Africa. The exchange control manual is being simplified with expectations that it will be completed in 2015. The following threshold changes will take effect from 1 April 2015: -> Authorized dealers may process corporate investment up to R1 billion per year, up from R500 million previously, with any unused allowance being carried forward. -> The foreign capital allowance of South African residents will be increased from R4 million to R10 million (R20 million per family unit) per calendar year, or upon emigration. […]

March 30th, 2015|Categories: Legal Development|Tags: , , , , , |

Change in taxation of pensions received from services rendered outside South Africa

A recent change in the interpretation and application of the Income Tax Act by the South African Revenue Service (SARS) may lead to a considerable decrease in the amount of taxes payable by foreign pensioners residing in South Africa. Pursuant to the updated interpretation of a tax exemption rule contained in the act, pensions received while working abroad are now exempt from local tax, irrespective of where the fund is located. During the last three years several taxpayers have had their full pensions taxed, although having received part of it while working outside South Africa. This conduct was possible because of an extensive interpretation of the relevant provision in section 10(1)(gC)(11) of the act which includes a specific exemption from the basic rule, that South Africa taxes the world-wide income of its residents. In the relevant section it says that “any amount received by or accrued to any resident from a source outside the Republic”, shall be exempt from tax. It was either arguable that the term “source outside the Republic” referred to the location of the fund paying the pension or annuity was decisive. If the fund was located in South Africa, SARS argued that the source was in South Africa and therefore the total amount was taxable in South Africa. The fact that the pension may have related partly to services that were rendered outside South Africa was not relevant. […]

December 1st, 2014|Categories: Legal Development|Tags: , , , , , |