Tax residency and deemed disposals
In 2001, South Africa, like many other countries, introduced capital gains tax aimed at levying capital gains tax on the gain made from the disposal of certain assets. When a South African tax resident company redomiciles abroad and changes its tax residency to another tax jurisdiction, such a company ceases to be a tax resident for South African income tax purposes (regardless of whether […]
Transferring assets from persons to companies
Many business transactions are concluded in terms of section 42 of the Income Tax Act. This section essentially allows a transfer of an asset by a person to a company, in exchange for equity shares in that company, allowing for a tax neutral transaction. The South African Revenue Service has recently issued Binding Private Ruling […]
The CIPC to intensify compliance enforcement from January
Be ready for new CIPC (Companies and Intellectual Property Commission) requirements which kick in from January 2020. They apply to all companies and failure to comply will put your company at risk of deregistration - with all the resultant negative consequences for your company, for your business and for you personally. When you come to complete your company’s Annual Return next year (we’ll explain […]