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Is the new super tax a tax on wealth?

02 May 2017 | Tax

In his last Budget Speech as Finance Minister, Pravin Gordhan announced the introduction of an additional tax bracket of 45% for individuals earning more than R1.5 million per annum. Many refer to this tax bracket as a ‘wealth tax’. Is this bracket in fact intended to be a wealth tax? A wealth tax is a tax on the increase in the value of personal assets owned. The effect of the additional tax bracket is that every additional rand generated in excess of R1.5 million per annum of taxable income will be subject to tax at a rate of 45% before it is used to create any form of wealth.

Recent developments in the exemption of foreign pensions

28 March 2017 | Tax

Foreign sourced pensions are usually exempt from South African income tax where such pensions constitute consideration for past employment outside South Africa. Taxpayers earning foreign pensions should, however, take note that the application of this exemption has recently been narrowed.

SARS gives clarity on PAYE and VAT treatment of non-executive directors, but the tax treatment of non-resident non-executives remains punitive

13 March 2017 | Tax

There has been uncertainty regarding the employees’ tax and VAT treatment of fees paid to non-executive directors for some time. The issue was highlighted in the 2016 Budget Review and SARS has also expressed various conflicting views on these points, in interactions with taxpayers.

SARS makes tax sexy

08 March 2017 | Tax

SARS stimulate venture capital industry by making 12J tax incentive attractive.

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