When employees travel abroad for work, they incur additional expenses for food, transportation, and incidentals. Reimbursing these costs can be time-consuming if employees are required to submit receipts and detailed records. To simplify this, the South African Revenue Service (SARS) allows employers to pay a subsistence allowance. This allowance, if paid within SARS-approved limits, is tax-free and does not require employees to submit proof of expenses for the covered amounts.

Have you got clients with cross-border transactions? Considering transfer pricing is essential for clients that transact with related parties. This article simplifies transfer pricing with clear explanations, practical examples, and actionable tips. Learn how to apply the arm’s length principle, benchmark transactions, prepare documents to protect your clients from tax disputes.

Read crucial updates from the SARS National meeting, including feedback on PBO reporting inconsistencies, beneficial ownership disclosures, and eFiling challenges. Learn about SARS' planned system improvements, clarifications on IT144 exemptions, and enhanced support for resolving practitioner concerns.

As a tax practitioner you may come across clients who earn income abroad, making it imperative to understand how foreign income is taxed. In this article we look into the responsibilities of South African tax residents, and provide practical illustration on how Section 10(1)(o)(ii) of the Income Tax Act is applied to determine the portion of the withholding tax.

VAT rules for business vehicles can be complex. In this article we look at the definition of a 'motor car' and the consequences when claiming input VAT on vehicle purchases, modifications, and maintenance. Read more for practical examples, explanations and guidance on handling VAT adjustments if a vehicle’s purpose shifts from business to private use, ensuring accurate VAT treatment and compliance.

How will the new Medium-Term Budget Policy shape the future of accounting in South Africa? From Operation Vulindlela's reforms to SARS' new strategies, discover what these changes mean for accountants and how to seize the opportunities ahead. Read the full article for insights and action points!

Tax practitioners must uphold the integrity of the tax system, but what happens when ethical lines are crossed? The recent case of Naraidu v The State shows just how severe the consequences can be. Involving fictitious VAT claims and a tax practitioner caught in the middle, the case takes us from a conviction of fraud to an acquittal on appeal. Was it reckless action or intentional wrongdoing? We highlight the key lessons every tax professional should learn from this dramatic courtroom saga.

Learn how the current tax regulations create challenges for the fast-growing telecommunications industry. This article breaks down how outdated tax rules, like Sections 12D and 11E, apply to modern infrastructure, and discusses VAT issues such as international roaming and bundled services. We also cover recent court cases involving Telkom and MTN to show how tax laws are being interpreted in this changing landscape.

The topic of companies providing interest-free loans to directors in South Africa involves both legal and tax considerations. While the Companies Act permits loans under specific conditions, tax implications like fringe benefits and deemed dividends may arise. This article outlines the important factors to consider and offers practical advice to ensure compliance and avoid potential tax consequences. Read on to gain a deeper understanding of how to navigate this issue effectively.

When clients miss their VAT registration deadlines, quick action is essential. This article outlines the steps practitioners should take, including determining the liability date, completing registration, and applying for voluntary disclosure relief (VDP). It also covers potential consequences like backdated VAT, penalties, and interest. By following these steps, you can help clients stay compliant and avoid penalties.

Advising nonprofit clients on structuring their organisations can significantly enhance financial efficiency and tax compliance. Registering as a Public Benefit Organisation (PBO) offers valuable tax benefits while serving a public cause. Understanding these advantages enables you to help clients to maximise impact and maintain their financial sustainability. Our article explains the benefits and clears common misconceptions regarding PBOs.

Whistleblowing plays a critical role in exposing corruption, fraud, and tax evasion in South Africa, but whistleblowers often face significant challenges, including retaliation, harassment, and even physical threats. Despite the legal protections offered by the Protected Disclosures Act and Tax Administration Act, high-profile cases have revealed the limitations in safeguarding whistleblowers. Accountants, in particular, are on the frontlines of identifying financial misconduct and tax evasion, balancing their ethical responsibilities with the risks involved in whistleblowing. Strengthening enforcement and protection measures is essential to ensure that whistleblowing becomes a more effective tool for promoting accountability and transparency.

It is crucial for tax professionals to know when they can charge contingency fees based on tax refunds or savings you get for your clients. Our article explains the rules from SARS, the situations where such fees are allowed and how to set up agreements to keep things clear and fair, maintaining high ethical standards.

Cyber fraud aimed at taxpayers is becoming more common, with scammers pretending to be SARS and asking for payments or personal details. Find out how to spot the red flags, protect your information, and stay safe from these scams in this easy-to-follow guide. Stay aware and protect your money.

Making the decision to withdraw a one-third lump sum from your retirement savings is more than just a financial choice—it's a pivotal moment that can shape the rest of your life. As accountants, guiding clients through this process means helping them weigh immediate needs against long-term security, understanding the tax implications, and recognising the potential risks of early withdrawal. By carefully considering these factors, clients can ensure their retirement is not only comfortable but sustainable, allowing them to enjoy the fruits of their labour without fear of running out of funds in their later years.

South Africa’s two-pot retirement system emphasizes the critical importance of disciplined saving over premature cash withdrawals. Implemented on September 1, 2024, the innovative system splits retirement contributions into a ‘savings pot’—accessible for emergencies—and a ‘retirement pot’ that safeguards two-thirds of savings until retirement. This approach not only ensures financial stability in later years but also discourages depleting funds early, thereby securing a more substantial retirement nest egg. The structure underlines the necessity of long-term financial planning, highlighting how sustained savings contribute significantly to a comfortable and secure retirement.

Staying on top of tax deadlines doesn't have to be stressful. This article explains the 12-month rule for filing company tax returns in simple, clear terms. With insights from SARS and CIBA tax practitioners, it's a helpful guide to staying compliant and avoiding penalties while keeping the process smooth and manageable. Read on for practical tips and advice.

How can you safeguard yourself and your clients against potential personal liability for tax debts? This article dives into the application of section 183 of the Tax Administration Act dictating personal liability through a recent court case. It highlights critical actions which accuntants must take to protect their practices and clients.

The recent changes in the Draft Tax Administration Laws Amendment Bill emphasise the urgent need for tax practitioners to ensure their clients comply with the new SARS regulations on appointing Public Officers. This article explains the requirements and their possible implications. By grasping these updates, you can help your clients avoid penalties and maintain compliance.

This article provides a simple guide for accountants on how to apply ring-fencing rules under Namibian tax law, helping them ensure their clients meet compliance requirements. We explain which trades fall within "suspect trades," and when a business is allowed to use assessed losses to reduce taxable income from other parts of the business. Read our article for more information and a handy checklist to consider ring fencing for businesses.