TAX TIPS – FOREIGN TRUSTS
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TAX TIPS – FOREIGN TRUSTS

South African beneficiaries of foreign trusts who receive distributions from those trusts are, in most cases, liable to tax in respect of such distributions. The anti-avoidance measures in section 25B and paragraph 80 of the Eighth Schedule to the Act also specifically provide for distributions out of trust capital to SA beneficiaries to beneficiaries to...

TAX TIPS – SECTION 24C
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TAX TIPS – SECTION 24C

Upfront payments are common in many industries but especially in construction and manufacturing. These upfront payments often defray costs that will be incurred over more than one tax year. The trouble from a tax perspective is that the full upfront payment is taxable with deductions to be incurred in following years not being deductible. That...

TAX TIP – LESSOR’S WEAR AND TEAR ALLOWANCE
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TAX TIP – LESSOR’S WEAR AND TEAR ALLOWANCE

Taxpayers who let certain assets may qualify for a wear and tear deduction in respect of that asset. Under certain circumstances, the wear and tear deductible in respect of those assets are effectively limited to the rental income generated from that asset. Lessors should therefore be mindful of the applicable tax legislation governing wear and...

TAX TIP:  R&D APPROVAL AFTER TAX RETURN SUBMISSION
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TAX TIP: R&D APPROVAL AFTER TAX RETURN SUBMISSION

To claim a deduction of 150% under section 11D of the Act, the taxpayer needs approval from the Minister of Science and Technology. Without the approval, the deduction cannot be claimed under section 11D. It often happens in practice, however, that approval is granted only after the taxpayer’s year of assessment for which the deduction...