Latest News

Get insight into the most recent legal developments across key industry sectors.

subscribe to updates

Loading...

Domestic treasury management companies  – alignment of tax and excon provisions
21 February 2019 Tax & Exchange Control

Domestic treasury management companies – alignment of tax and excon provisions

In 2013, the South African government introduced the domestic treasury management company (DTMC) regime to enable South African companies, which are registered with the Financial Surveillance Department (FSD) of the South African Reserve Bank (SARB), to expand into the rest of Africa and abroad. The DTMC regime allows South African companies to establish one subsidiary as a holding company to hold African and offshore operations, without being subject to exchange control restrictions.

Double taxation relief for South African employees working abroad
21 February 2019 Tax & Exchange Control

Double taxation relief for South African employees working abroad

South African tax residents are taxed on their worldwide income, meaning that where such a person works abroad and is remunerated, this is caught in the South African tax net. If such a person works for a South African employer, an employee’s tax withholding obligation exists for the employer regarding the income that resident earns for services rendered while physically abroad.

Review of the definition of permanent establishment
21 February 2019 Tax & Exchange Control

Review of the definition of permanent establishment

The concept of a permanent establishment (PE) is a fundamental concept in international tax law as it establishes the right to tax business profits of non-resident entities in the country where business activities are carried out.

Review of venture capital company regime
21 February 2019 Tax & Exchange Control

Review of venture capital company regime

By way of background, the Venture Capital Company (VCC) tax regime was introduced into the IT Act in 2009. Section 12J of the IT Act encompasses the relevant legislation governing VCCs and provides for the formation of an investment holding company, described as a VCC, through which investors can provide equity funding to a portfolio of small and medium-sized enterprises (SMEs). More specifically, investors subscribe for shares in the VCC and claim an income tax deduction for the subscription price incurred. The VCC, in turn, invests in “qualifying companies”.

Tax treatment of amounts received by or accrued to portfolios of Collective Investment Schemes (CIS)
21 February 2019 Tax & Exchange Control

Tax treatment of amounts received by or accrued to portfolios of Collective Investment Schemes (CIS)

In terms of s25BA of the IT Act, distributions of amounts that are not of a capital nature that are made by a CIS to unitholders within 12 months after they accrued to, or in the case of interest was received by a CIS, follow the flow-through principle and are deemed to directly accrue to unitholders on the date of distribution and are subject to tax in the hands of unitholders. The IT Act does not provide a definition of what constitutes an amount of a capital nature and one is required to have regard to the specific facts and circumstances as well as tests handed down by Courts to decide whether an amount is of a capital nature.

Personal income tax rates
21 February 2019 Tax & Exchange Control

Personal income tax rates

Many predicted that, given the already small tax base in South Africa, the already high personal income tax rates, the significant increases in tax rates over recent years and the current state of the economy, there would be very few changes to personal income tax rates in the Budget Speech. In recent years, South Africans faced an increase in personal income tax rates (refer for example to the 45% tax bracket introduced for individuals earning R1,5 million and above), the value-added tax rate, dividend withholding tax rate and the capital gains tax inclusion rates.

Loading...

Competition Amendment Bill signed into law
13 February 2019 Competition

Competition Amendment Bill signed into law

The Competition Amendment Bill was signed into law today, 13 February 2019, by President Cyril Ramaphosa. The Amendment Act introduces a new era of competition law enforcement in South Africa, focusing on economic inclusiveness and participation by Small, Medium and Micro-sized Enterprises (SMMEs) and businesses owned or controlled by historically disadvantaged persons (HDPs).

Beware of lost title deeds
13 February 2019 Real Estate

Beware of lost title deeds

The Department of Rural Development and Land Reform has recently amended Regulation 68 of the Regulations to the Deeds Registries Act, No 47 of 1937. Regulation 68 sets out the procedure to be followed when an original deed has been lost or destroyed and a certified copy thereof needs to be obtained (also referred to as a “VA application”). Regulation 68 also sets out the process to be followed for the cancellation of a lost bond. The amendments are set to become effective on 25 February 2019.

The curious case of consent: Google fined 50 million Euro for breaching the GDPR
13 February 2019 Technology, Media & Telecommunications

The curious case of consent: Google fined 50 million Euro for breaching the GDPR

French Data Regulator, Commission Nationale de l’Informatique et des Libertés (CNIL’), recently fined Google 50 million euro for breaching the provisions of the General Data Protection Regulation (‘GDPR’) which came into effect on 25 May 2018. This follows complaints brought by consumer organisations None of Your Business and La Quadrature Net against the tech giant in 2018.

Cybercrimes Bill – a positive step towards the regulation of cybercrimes in South Africa
13 February 2019 Technology, Media & Telecommunications

Cybercrimes Bill – a positive step towards the regulation of cybercrimes in South Africa

Technology has become an indispensable part of modern life – it has significantly changed the way people communicate and do business. In a world and country where technology is dynamic in nature and is continuously evolving, South Africa has struggled to keep up with these developments and in regulating cyber security and cybercrimes.

“Foregone conclusion” won’t save unfair bidding process
13 February 2019 Dispute Resolution

“Foregone conclusion” won’t save unfair bidding process

The building blocks of the procurement process are entrenched in s217 of the Constitution, which provides that when an organ of state contracts for goods and services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost effective.

Shared wisdom for employee share schemes
13 February 2019 Corporate & Commercial

Shared wisdom for employee share schemes

Most businesses would agree that their most important and most valuable assets are the people that comprise the organisation. In order to retain the best people and to align the interests of employees, employers and shareholders, companies may wish to incentivise key individuals to stay for the “long haul” or to reward employees for the fruits of their hard work by implementing a share incentive scheme.

Loading...

Best Lawyers 2016 in South Africa
21 October 2015

Best Lawyers 2016 in South Africa

The seventh edition of Best Lawyers in South Africa has been released and Cliffe Dekker Hofmeyr’s (CDH) lawyers have once again featured prominently on the list. Most notably, David Thompson is the Best Lawyers’ 2015 Cape Town Mergers & Acquisitions Lawyer of the Year and Peter Hesseling is Best Lawyers’ 2015 Cape Town Corporate Lawyer of the Year.

Uber: Convenience vs controversy
6 October 2015 Insurance Law

Uber: Convenience vs controversy

Members of public are increasingly making use of the convenient service offered by Uber. While this is undeniably an essential service, questions arise as to its legitimacy and whether this service is not already on offer by existing legitimate transportation services. The latter consideration sparked conflict between Uber service providers and the metered taxi industry and the issue was also recently debated in National Parliament.

Women in the workplace need flexibility and engagement
12 August 2015 Competition

Women in the workplace need flexibility and engagement

The work life balance does not exist and life is a juggling act. However, flexibility can make the juggling easier and it is this flexibility, alongside an open dialogue, that is proving invaluable for career women who also want to be there for their families.

Our new journey as we close the chapter on our formal alliance with dla piper
7 August 2015

Our new journey as we close the chapter on our formal alliance with dla piper

After a very successful partnership with DLA Piper over many years, Cliffe Dekker Hofmeyr's partners have decided against a fuller integration with DLA Piper. Both CDH and DLA Piper have therefore concluded that their respective interests and strategies, internationally and on the African continent, are best delivered separately and so our formal alliance comes to an end on 31 August 2015.

Loading...

Loading...

Johan Jacobs talks about the budget speech
16 May 2016 Trusts & Estates

Johan Jacobs talks about the budget speech

Johann Jacobs, national practice head and director in the Trust and Estates practice talks about the budget speech which was delivered by the finance minister from trusts tax perspective.

Employment tax incentives
10 March 2016 Tax & Exchange Control

Employment tax incentives

Nicole Paulsen, associate in the Tax and Exchange Control practice speaks about employment tax incentives and how it expires.