Companies: How Will the Reduced Tax Rate and Assessed Loss Rules Affect You?

New rules have been established around the treatment of corporate assessed losses, and these are already in effect, limiting the amount of previous assessed losses that can be offset against a company’s annual income tax liability in future financial years. The change follows the reduction in the corporate tax rate from 28% to 27% and is intended to minimise the impact of this tax rate reduction on overall revenue collection. In this article, we find out how the new rules for corporate assessed losses are linked to the corporate tax rate reduction, discover what these new rules entail, and provide some practical examples to illustrate the financial impact on companies’ tax liabilities at the end of this and future financial years.

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When, Why and Whose Jobs You Should Be Outsourcing

If you are a small business owner it can often feel like you need to do everything yourself in order to keep the wolf from the door. It's easy to feel like everything you can do is money saved. This is, however, misleading and trying to do everything yourself can in fact put your company at a larger risk than if you let other professionals take care of matters for you. Knowing when, where and which services should be outsourced is going to be a critical step along the pathway to success. Optimizing this process will free up your time to focus on core business areas, while also bringing in fresh thinking and expertise that can invigorate the business, lead to fresh insights and take your company to the next level. So how do you know when it's time to outsource a particular task, and which tasks are those most in need of outsourcing?

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Planning to Cease Being a South African Tax Resident? What You Should Know Before Approaching SARS

Another channel has been made available to taxpayers to inform SARS that they are ceasing to be tax residents. While this might make it seem a simple matter to break South African tax residency, the reality is that doing so requires comprehensive understanding of the implications and careful planning, whether for a person, a trust or a company. Informing SARS that you are ceasing to be a tax resident via any channel could result in unintended consequences, such as an audit or an unexpected tax liability. With increasing numbers of skilled and wealthy South Africans emigrating, the tax and other implications of this option should be well understood before any decisions are made, and SARS is best approached with the assistance of a trusted advisor.

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A Guide to Accessing Funds That Can Help Your Small Business

SMEs have financing opportunities some owners may not be aware of, or if they are, may not know how to fully take advantage of them. There are various schemes available to assist SMEs with grants, business loans and “soft loans” and development programs. These schemes are primarily to support SMEs finance operating costs and expansion projects – however they mostly have an undertone of creating and protecting employment – together with training and skills development.

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What The New Employment Tax Incentive Limits Mean for Your Business

A substantial increase in the limits for the Employment Tax Incentive (ETI) - a tax concession encouraging employers to hire more young people – was announced during Finance Minister Enoch Godongwana’s 2022 Budget Speech. These proposed new limits, effective from 1 March 2022, will increase the amount of tax relief employers can claim when employing young people. Let's find out what the new limits are, look at a few ETI calculations to see the potential tax reduction and more.

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