Treasury concedes on one CIS tax proposal, holds firm on another
National Treasury has withdrawn its proposal that would have triggered capital gains tax when fund managers merge collective investment scheme portfolios.
Tax
Schools’ exit VAT liability postponed for a year
VAT-registered schools will have to deregister from 1 January 2026, but the deemed output VAT on retained assets will only be payable the following year.
More taxpayers will be caught by lower ringfencing threshold
The threshold for ringfencing assessed losses from ‘suspect’ or ‘hobby-like’ trades will be reduced from the 45% marginal rate to 39%.
Treasury withdraws plan to tax foreign pensions, pledges wider consultation
Although the amendment will not proceed, Treasury remains concerned about double non-taxation and will re-engage with the industry to find a balanced approach.
SARS launches expedited tax-debt compromise process
SARS will negotiate compromises only where liability is undisputed and both parties agree the taxpayer cannot pay in full.
BHF asks Treasury for clarity on plan to phase out medical tax credits
According to the Board of Healthcare Funders, the Department of Health’s presentation indicates the credits will be eliminated by the beginning of 2029.
Tax Ombud’s 10 top refunds total R167m
Requiring SARS to provide written reasons when it rejects the OTO’s recommendations has resulted in an increase in the resolution of complaints.
Treasury urged to retain tax relief for manager-initiated unit trust transactions
ASISA says further consultation is needed to avoid negative consequences for investors and the collective investment schemes market.
Why using the correct IRP5 source code matters for SA expats
Incorrect source codes trigger unnecessary tax for hundreds of expatriates. The result is lost refunds or large tax bills.
Capital gains tax is ‘sabotaging South Africa’s economic growth’
CGT levies gains created by inflation and currency depreciation, eroding real returns and discouraging long-term investment, says the Free Market Foundation.
Deep flaws in SARS’s systems, OTO investigation finds
The Tax Ombud’s draft report on profile hijackings finds evidence of failures in SARS’s fraud prevention, detection, and resolution processes.
Treasury downplays impact of schools’ forced VAT deregistration
ISASA says there has always been a distinction between exempt (educational) and taxable (commercial) supplies.
What ‘capital’ could be in a CIS capital distribution
A proposed amendment to the Income Tax Act will tax unit trust investors on capital distributions before disposals, without any base cost offset.
Treasury favours conditional access to retirement pot for retrenched workers
It is also open to discussions on letting members transfer all their vested savings into their retirement and savings components.
Tax amendments under fire for squeezing out revenue at the expense of growth
Industry stakeholders say poorly consulted proposals risk undermining investment, savings, and innovation.
Draft Bill hides a ‘stealth tax’ in your unit trust investments
Proposed amendments could undermine the tax-efficient compounding that makes a collective investment scheme an attractive investment vehicle.
Influencers in the tax net: SARS clarifies approach to digital income
Remuneration extends beyond cash payments – products, services, and travel perks must also be declared as taxable income.
