Author Archive for: ‘Shannon’

Cryptocurrency is regarded as a financial instrument for Income Tax purposes and not as a currency. As such the profit or loss on cryptocurrency trading could either be taxed as normal income if the intention of the investor was to speculate or alternatively the profit or loss could be regarded as a capital gain or loss if the intention of …

With effect 1 March 2016 the tax deduction for contributions made to pension funds, provident funds and retirement annuity funds is significantly amended. Please refer to previous year’s tax guides for the tax treatment before 1 March 2016. From 1 March 2016 onwards, the tax deduction calculation for the three different funds, pension, provident and retirement annuity funds will be …

All taxpayers are entitled to a monthly “tax rebate” (i.e. credit) in respect of any medical scheme contributions made for the benefit of themselves and their dependants as follows: For additional (e.g. out-of-pocket) medical expenses incurred by individual taxpayers, a tax rebate is available as follows: Where the taxpayer is 65 and older or where the taxpayer, taxpayer’s spouse or …

Restraint of trade payments that are taxable in the hands of individuals, labour brokers and personal service providers are deductible by the payer over three years if the period of the restraint is less than three years, or over the period of the restraint if longer.

Improvements made to leasehold property in terms of a lease agreement by the lessee must be included in the income of the lessor. Either the stipulated amount or a fair and reasonable value will be included. The lessee may deduct such expenditure over the period of the lease. The lessor may be entitled to discount the value of the improvements …

Expenditure which would normally be deductible from income, actually incurred prior to the commencement and in connection with a specific trade, can be deducted from the income of that trade. The deduction is restricted to the income from that trade and may not be set off against the income from a different trade.

Research and development expenditure may qualify for incentive allowances whereby 150% of the operating expenses are deductible. Certain requirements must, however, be met, including the Department of Science and Technology’s approval of the deduction.

Dividends tax is a tax levied on the shareholder at a rate of 20% on dividends paid. However, where a dividend in specie is paid, dividends tax is a tax levied on the company declaring the dividend. Dividends tax is normally withheld by the company paying the dividend and is payable at the end of the month following the month …