Tax
From The Report: South Africa 2012
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In conjunction with SizweNtsalubaGobodo, OBG explores the taxation system, examining South Africa’s investor-friendly environment.

Articles from this Chapter

Analysis

Revising the rates: A number of changes have been made to legislation
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Tax legislation is drafted by the National Treasury and administered by the country’s tax authority, the South African Revenue Services (SARS). The tax authority is able, where necessary, to draft guidelines, practice notes and interpretation notes. It does not, however, have the power to draft legislation, and its role is limited to administration. OBJECTIONS: If a taxpayer has any differences with SARS, they can lodge an objection with the authority. If their objection is not successful,…

Overview

Duties explained: An overview of regulations for taxpayers
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The South African Revenue Services (SARS) is the country’s tax authority, which manages various taxes, some of which apply to some industries, but not others. The taxes governed by SARS are as follows: • Corporate income tax, which includes capital gains tax (CGT) • Diamond export levy • Dividend tax, which recently replaced secondary tax on companies (STC) • Donations tax • Estate duty • Mineral and petroleum resource royalty tax • Individuals’ tax, commonly…

Viewpoint

Zweli Mabhoza, Head of Tax, SizweNtsalubaGobodo, on recent developments in the tax legislation
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In recent years, the tax landscape has been affected by a number of developments, including changes to the tax legislation as well as case law. The South African tax system does not allow for group tax. However, in 2001 the National Treasury introduced corporate rules intended to allow entities that form part of the same group of companies to carry out business transactions without being subject to tax. These rules, however, have been amended almost every year since 2001 for various reasons.…