- Do you know the nature of your share dealing profit? Here are 4 things to consider
- You can hold shares to make money.
You hold on to them and get benefits in the form of capital growth and dividends. Or you might look at selling to make profits on the movement of prices.
The tax consequences here revolve around whether the gains or losses you receive are of a capital or revenue nature.
If there's a dispute, which could very well arise, you'll have to prove an amount ... ››› more
- [06 November 2015]
- Five foreign dividends you don't have to pay tax on
- Do you benefit from investments from companies outside of South Africa? Did you know that SARS has changed the exemption on foreign dividends? Well, this means all your foreign dividends are taxable in South Africa.
But wait there's good news.
There are five foreign dividends you can receive from investments in companies located in other countries that are tax free!
Read how you can take full ... ››› more
- [01 July 2015]
- Here's how to turn foreign dividend funds into a tax deduction if you can't get the funds into South Africa
- Even though SARS wants to tax income as soon as it's due or as soon as you receive it, today we remind you about a certain rule that applies for foreign income and which many people forget.
Here's the trick!
If you can't send any foreign income to South Africa because of exchange controls or other restrictions, you don't need to pay tax on it in South Africa until you're able to send the fu... ››› more
- [12 June 2015]
- SARS says your foreign dividends are now 100% taxable in South Africa. But there are five tax-free dividends you can take advantage of
- A few years ago, SARS took Secondary Tax on Companies (STC) away as a form of taxing dividends. Dividends Withholding Tax (DWT) replaced this.
But, with this change, SARS had to align the treatment of foreign dividends for tax purposes, as the new basis of DWT was a tax on the individual taxpayer, and no longer the company.
This meant SARS would tax you on the tax rates per the individual ... ››› more
- [20 May 2015]
- Shareholders: listen up or you could trigger unnecessary dividends tax!
- As a shareholder, you probably make and take loans to and from your company.
But do you understand the serious consequences from SARS if you don't account for these loans correctly?
Added to that, some shareholders aren't aware their liability is limited, even though the company is a separate legal entity.
Read on and I'll show you the negative implications of shareholder's loans so you ... ››› more
- [18 May 2015]
- Four steps SARS auditors will use to assess your company's dividend tax compliance
- Preparing for an audit is the best way to ensure in goes well when it does happen. I say 'when' it happens because your chances of escaping the SARS audit net are slim to nonexistent.
To know what you must do and have when SARS audits you, you must know what a SARS auditor will look for.
To help you in your preparations we're explaining the four steps the SARS auditor will take when he ass... ››› more
- [07 August 2014]
- Have you made a donation? Find out how much donations tax you'll have to pay
- Have you given something to someone for free? If so, read on to find out how much donations tax you'll have to pay....
The Practical Tax Loose Leaf Service explains that a donation is when:
You give something away for free;
You get rid of something for a lesser price than it's worth; or
A company disposes of property, at the request of any person. SARS will see that property... ››› more
- [02 December 2013]
- Revealed: Two dividend payments exempt from dividends tax
- Did you know that some dividend payments are automatically exempt from Dividends Tax (DT)? That's right. If your company pays these out, the beneficial owners of your dividend payouts won't have to submit the declaration and undertaking to prove it! Here are the two dividends that are exempt from DT.
As mentioned, some dividend payments are automatically exempt from DT.
What are they?
T... ››› more
- [27 November 2013]
- Here's how to avoid a SARS audit of your dividends
- If you're waiting for your dividends payout, make sure it doesn't come with a SARS audit or penalty! Here's how... The experts at the Practical Tax Loose Leaf explain everything you need to know.
First, take note that when your company pays out a dividend, it'll withhold the Dividends Tax (DT) from the payment to the shareholder. It then pays this over to SARS (in much the same way that you d... ››› more
- [18 November 2013]
- Dividends Tax: Are you at risk of being audited?
- Dividends Tax (DT) is a tax charged when a dividend is paid out. While the liability for tax falls on the shareholder, the company paying the dividend must withhold the tax and pay it to SARS on behalf of the shareholder. As the company paying the dividend, it's crucial that you get this right. If you don't, you'll expose your company to a SARS audit. Use this checklist to ensure you're not at ris... ››› more
- [31 October 2013]