Category Taxation in South Africa

South Africa’s Sugar Tax Approaches

September 6, 2017 Taxation in South Africa

tax on sugary drinksJOHANNESBURG – South Africa’s sugar tax will come into effect in April 2018, however, nobody knows exactly what the tax will look like.

At a joint meeting of Parliamentary health and finance committees in South Africa it was indicated that the country’s proposed tax on sugar sweetened beverages may come into force by April 2018.

However prior to the tax being enacted, the government must still decide on the exact rate of the new tax.

Initially the government hoped to introduce the tax at a rate of 20 percent.

Currently, the government’s proposal has been diluted to a rate of 10 percent at the time of introduction, with gradual increases to the rate as time goes on.

Alternatively, industry leaders are calling for the government to introduce a further watered down tax which would reach ...

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Tax Breaks for Start-Ups Fall Flat in South Africa

July 25, 2017 Taxation in South Africa

Tax breaks for startupsPRETORIA – Tax breaks aimed at fostering a thriving small-business and start-up environment in South Africa have been labelled a resounding failure.

New information released by the South African Revenue Service indicates that the government’s endeavour to boost investment into small business has failed, as over the last two years only one entity has taken advantage of a special tax break for businesses making grants to small businesses.

Currently, an entity which makes grants to small businesses is able to enjoy tax exemptions, if it is registered for the exemption with tax authorities.

The businesses which receive the grants from a registered entity would also enjoy exemptions.

The program of exemptions was started in March 2015, and was intended to encourage a greater level of inves...

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South Africa Eyes Global Income Tax

July 21, 2017 Taxation in South Africa

Income Tax in South AfricaPRETTORIA – Within 2 years South Africans working overseas will be paying taxes in South Africa on their foreign incomes.

South African taxpayers working overseas may soon see a drastic rise in their tax bill, as tax authorities make moves to begin levying income tax on money earned while working overseas.

The South African Revenue Service released a proposed amendment to the national tax code, which would require any South African taxpayer working outside the country to continue paying income tax on their foreign earnings.

Under current regulations, any South African taxpayer who is out of the country for 183 per year, and meets some pre-set income thresholds will not be required to pay income tax on their overseas earnings.

The proposed legislation does allow for a rebate on the taxe...

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1 Million Tax Returns Filed in S.Africa

July 27, 2016 Taxation in South Africa

PRETORIA – A growing number of taxpayers in South Africa are utilising electronic filing systems to complete their tax returns.

In a press release issued on July 25th the South African Revenue Service (SARS) announced that over the first 21 days of the national tax season a total of 1 016 056 tax returns had been filed.

Of all the tax returns filled between July 1st and July 22nd, a total of 611 453 had been filed via the online e-filing system.

The remaining 404 603 tax returns were filed in person at a SARS branch.

The success of the latest tax season was attributed primarily to efforts by SARS to ease the process of filing taxes, especially via the e-Filing system.

It was further added that support tools such as the Help-you-eFile system has further helped convince people to move to t...

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South Africa Details Sugar Tax Plan

July 11, 2016 Taxation in South Africa

PRETORIA – South Africa’s Treasury has put forward its plan to see sugary drinks slapped with a tax of as much as 20 percent per bottle.

Late last week the Treasury of South Africa published a policy paper discussing the proposed implementation of a tax on the sale of sugar sweetened beverages, as a measure aimed at curbing the spread of obesity and related health issues.

In its policy paper the Treasury suggested that such a tax should be levied on any beverages that contain any added caloric sweeteners, including sucrose, high-fructose corn syrup, or fruit-juice concentrate.

The drinks which would fall under the scope of the tax include soft drinks, fruit drinks, energy drinks, vitamin water, and iced tea, but would not include drinks like natural juices and unsweetened milk products...

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