Section 42: Asset-for-Share Transaction

Written by: Max Azer What is it?: Section 42 of the Income Tax Act, No. 58 of 1962 provides a corporate relief (deferral) mechanism commonly referred to as an asset for-share transaction. In substance, this entails a transaction where a person (natural person, trust or company) disposes of his assets to a South African tax […]

Greylisting’s Grip: SARS, Master & CIPC Demand More from South African Residents

South Africa’s greylisting by the Financial Action Task Force (FATF) in February 2023 has sent ripples through the nation’s financial landscape, impacting individuals and businesses alike. Among the most noticeable changes are the intensified scrutiny and increased information demands from key regulatory bodies, particularly the South African Revenue Service (SARS), the Master of the High […]

SARS medical scheme fees tax credits for individuals (medical and disability expenses)

In South Africa, individuals are required to assess their personal income tax obligations annually. As part of this income tax calculation, taxpayers need to determine their medical scheme fees tax credit, also known as medical tax rebates. In the South African tax system, personal expenses are typically not considered when calculating an individual’s income tax […]

Section 18A certificates and auctions

Written by Max Azer Whether for philosophical purposes or tax deductions, have you ever asked yourself if you could be the donor or the donee (receiver of a donation) of the infamous S18A Certificates? This article will shed light on what these certificates mean for donors and donees and what requirements must be met to […]

Tax incentive for solar power

In terms of section 12B(h) of the Income Tax Act, No. 58 of 1962, as amended, taxpayers may deduct costs related to their solar installation from their taxable income.   Of course, not everything counts as a deductible expense. The costs that may be deducted are as follows: installation planning costs; panel delivery costs; installation […]

The South African tax consequences of buying and selling Cryptocurrency

Cryptocurrency (“Crypto”) refers to a digital currency that can be used to buy goods and services. Crypto uses technology called blockchain, which is a decentralised technology that is spread across many computers that manages and records transactions. Part of the appeal of this technology is its security (more people check and verify transactions). Crypto transactions […]

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