A significant change is under consideration for South African tax residents who receive income from foreign pension funds. The National Treasury has put forward a proposal in the 2025 Draft Taxation Laws Amendment Bill (TLAB) to remove the long-standing tax exemption that currently applies to foreign lump sums, annuities, and pensions received by South African…
Can I Give Money to My Children Without Paying Donations Tax? If you’ve ever wanted to help your children financially—perhaps with university fees, living expenses, or a deposit for their first home—you may have wondered whether SARS will treat that generous act as a taxable donation. Similarly, if you’re helping your ageing parents make ends…
Understanding the Difference Between Tax Avoidance and Tax Evasion in South Africa Taxation is a critical component of any country’s economic framework, ensuring that governments have the necessary funds to provide public services and infrastructure. In South Africa, the South African Revenue Service (SARS) is responsible for administering tax laws and ensuring compliance. Two terms…
What Is a Double Tax Agreement and How Does It Work? When individuals or businesses earn income across borders, they may be subject to tax in more than one country. This can lead to a situation known as double taxation—where the same income is taxed twice. To prevent this, countries enter into Double Tax Agreements…
Report: Understanding SITUS Tax, DTAs, and Estate Duty Treaties for South African Tax Residents Holding Foreign Assets For South African tax residents with global investment portfolios, understanding the implications of SITUS-based taxation is essential to effective estate planning. While South Africa levies estate duty on worldwide assets of its tax residents, this does not shield…
Ceasing Tax Residency Using a Double Tax Agreement (DTA): When and How It Works As global mobility increases, individuals frequently find themselves connected to more than one country, whether through employment, family ties, or investment. A common tax issue that arises is dual tax residency—when a person qualifies as a tax resident in two countries…
Here’s What People Get Wrong About Tax Residency So, you’ve moved abroad (or are planning to), and you’re wondering, “Do I still need to deal with SARS?” The short answer? Maybe. But the real answer depends on a few things — and there are a lot of myths floating around about what happens when you…
Guide to Determining Tax Residency in South Africa Introduction Determining your tax residency status is a critical first step in understanding your obligations to the South African Revenue Service (SARS). Whether you’re a South African living abroad, a foreigner working in SA, or someone with cross-border ties, your residency status dictates whether you’re taxed on…
Leaving South Africa Permanently? Here’s What You Need to Know About Exit Tax If you’re planning to leave South Africa permanently, one of the key tax issues you need to be aware of is the exit tax. This tax comes into play when you are no longer considered a South African tax resident — and…
As a registered tax practitioner in South Africa, your role is both critical and highly regulated. Your responsibilities span beyond simply submitting tax returns — you are a key player in upholding the integrity of the tax system, ensuring compliance on behalf of your clients, and maintaining professional conduct in accordance with the law and…