Waiver of trust loans – Donations tax and CGT
Historically, the R100 000 a year donations tax exemption was popularly applied to write down trust loan accounts by estate-planning trust founders/creditors. But, as I said in 201 TSH 2019, any tax-structuring should always take cognizance of its impact upon other...
Budget Review – Foreign earnings exemption increased
The s 10(1)(o)(ii) exemption for foreign employment income of tax residents was originally proposed to be limited to R1 million, with effect as from 1 March 2020. This will be increased to R1,25 million, according to Chapter 4 of the Budget Review, published along...
BUDGET SPEECH 2020/21 TAX YEAR
INDIVIDUALSThe maximum marginal rate for natural persons remains at 45% and is reached when taxable income exceeds R1 577 300 (previously R1,5 million).The minimum rate of tax remains at 18% on taxable income not exceeding R205 900 (previously R195 850).The primary...
Distribution by nonresident trust to RSA beneficiary
Overview of the tax implications ‘Funder’ attribution There is no straightforward, standard rule in advising an RSA beneficiary of the tax implications of a vested right awarded by the trustees of a foreign trust by way of a distribution. First, you need to enquire...
Interaction of taxes
CGT, estate duty and income tax upon death Any tax-structuring should always take cognisance of its impact on other taxes. For CGT purposes, the default position is that a deceased person is assessed on a ‘deemed disposal’ as at date of death, with the death-exclusion...
Tax-residency status – Section 10(1)(o)(ii) amendment revisited
A change of tax-residency status is the only sure-fire way to fully obviate the impact of the RSA tax on foreign employment income exceeding R1 million, effective as from 1 March 2020. As I said in 192 TSH 2019, your tax-residency status is one of fact and determined...
Adv. Anthony (Tony) Harding Davey
Editor
Tony is a co-author of Broomberg on Tax Strategy (Lexis Nexis). He is also the columnist for Costa Divaris’ (ex Silke on Income Tax) monthly tax newsletter as well as the South African contributing author to two international publications Planning and Administration of Offshore and Onshore Trusts (Bloomsbury Publishing Plc) and Tolley’s International Succession Laws (STEP). He appears as a guest tax adviser on Summit T.V. Prior to establishing the firm, Tony acted as General Counsel to three JSE-listed financial services companies. As a member (honorary Status Conferred in 2014) of the National Bar Council of SA (previously IAASA), Tony negotiates Alternate Dispute Resolution and litigates before the Tax Board and Court.