B2B Central

Tax

18 Oct 2021

Is the proposed tax on retirement interests an 'exit tax'?

By Staff Writer

The most contentious proposal introduced by the 2021 Draft Tax Bills is arguably the tax on retirement interests when a person ceases tax residency. The proposed tax has widely been christened as a further “exit tax” imposed on South Africans leaving the country.

12 Oct 2021

The glitch in SA's new residency-based system

By Staff Writer

South Africa’s exchange control regime has relaxed considerably over the last few years, but the most recent amendments have created widespread confusion around the definition of non-residency for exchange control purposes. In particular: When is a person non-resident for exchange control in South Africa? How do they cease to be resident for exchange control purposes? And what does all this mean?
06 Oct 2021

Changing hands, changing currencies – SARB approval for cross-border transactions

By Staff Writer

In light of recent developments on the sides of both the South Africa Revenue Service (SARS) and the South African Reserve Bank (SARB), the regulatory burden for the cross-border flow of funds, resulting from transactions concluded between South African residents and foreign parties, has been significantly eased.
06 Oct 2021

Financial emigration: Should I stay, or should I go?

By Staff Writer

Whether working abroad or still hunting for jobs overseas, the possibility of a financial emigration always hits centre stage at some point. Tax is inherently complex, but once you start crossing borders it becomes an ever-changing calculation that can easily render void the benefits of earning a foreign income, which was possibly the reason why you chose to work abroad in the first place.
04 Oct 2021

'Pandora Papers don’t represent offshore financial industry'

By Staff Writer

The Pandora Papers are not representative of the wider offshore financial industry which typically helps hardworking people looking for better returns and more flexibility, says Nigel Green, chief executive of deVere Group.

04 Oct 2021

Rough seas ahead for taxpayers working on ships

By Staff Writer

In search for opportunities abroad, many South Africans have taken to the seas. It might not be the same as working in a new country, but it offers a change of scenery while earning a foreign income. Working on a rig, a yacht or a cruise ship is not for the faint-hearted, though.

30 Sep 2021

The new rules around citizenship, exchange control and tax residency

By Staff Writer

The concept of “emigration”, as recognised by the Financial Surveillance Department of the South African Reserve Bank (SARB), has been phased out, with effect 1 March 2021. National Treasury has indicated that the reason for this regulatory change is “to encourage South Africans to keep their ties with the country”.
28 Sep 2021

How having a financial plan can help digital nomads

By Staff Writer

People are becoming digital nomads as a result of the pandemic, earning a living working online in various locations around the globe. Previously a privilege afforded to relatively few, 2020 ushered in a new era in which working remotely has become commonplace.

27 Sep 2021

What to consider when selecting a retirement solution

By Staff Writer

There are several income solutions available to choose from when you reach retirement, each meeting different requirements. Amongst these solutions, the two traditional ones that are currently used to provide retirees with an income from their retirement savings are a guaranteed life annuity and a living annuity.
27 Sep 2021

'Artificial resignations' are not legal

By Staff Writer

Momentum Corporate’s multi-employer umbrella fund, FundsAtWork, is receiving requests from participating employers to allow members to resign “artificially” to get access to their retirement savings. Employers then reinstate the employee once they’ve obtained access to their savings.

27 Sep 2021

Good faith aiding personal services providers

By Staff Writer

The illusion has at times been created that a company can be used as an effective mechanism to mitigate against any PAYE liability. The Income Tax Act, however, contains provisions that deem payments to certain service providers to be remuneration that is subject to PAYE, irrespective of the fact that the services are offered via a company.
27 Sep 2021

Are SARS lifestyle audits the answer to corruption?

By Staff Writer

The 2021 Tax Indaba commenced on 20 September 2021 and the first day of the conference saw an enthralling panel discussion chaired by Jerry Botha, Managing Partner of Tax Consulting South Africa on lifestyle audits. The panel, which included former Acting SARS Commissioner Mark Kingon and CEO of the South African Institute of Tax Practitioners, Keith Engel, shared great insight into this audit strategy.