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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.

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A new dawn for dividend-stripping rules?
21 February 2019 Tax & Exchange Control

A new dawn for dividend-stripping rules?

National Treasury amended legislation governing share buy-backs and dividend stripping in 2017 and again in 2018. The specific anti-avoidance provisions can be found in s22B of the Income Tax Act, No 58 of 1962 (IT Act), which takes aim at shares held as trading stock, and paragraph 43A to the Eight Schedule to the IT Act, which applies if the shares are held on capital account.

CDH wins prestigious M&A Deal Flow award 10 years in a row
20 February 2019 Corporate & Commercial

CDH wins prestigious M&A Deal Flow award 10 years in a row

Advising on 69 M&A deals, CDH accounted for 24% of market share over the 2018 review period. It is this impressive flow of deals, totalling R55 billion in value, which saw CDH recognised by DealMakers as the law firm that has advised on the most M&A deals in South Africa for the tenth consecutive year at the annual DealMakers Awards held on 19 February 2019.

CDH rankings in Chambers Global 2019
18 February 2019

CDH rankings in Chambers Global 2019

Chambers and Partners identifies and ranks the most outstanding law firms and lawyers in over 180 jurisdictions throughout the world. CDH once again featured prominently in the latest edition of Chambers Global. The 2019 rankings, released on 14 February, affirm CDH’s strength and standing in the South African market, both as leading experts and as formidable teams.

A diver’s quandary: The role of domestic law in interpreting double taxation agreements
15 February 2019 Tax & Exchange Control

A diver’s quandary: The role of domestic law in interpreting double taxation agreements

In the international tax law arena, agreements for the avoidance of double taxation (DTAs) are, very simply, concluded between states with a view to prevent, mitigate or discontinue the levying of tax in respect of the same income, profits or gains or tax imposed in respect of the same donation under the laws of the particular states. In addition, DTAs regulate the rendering of reciprocal assistance in the administration of and collection of taxes under the said laws of the respective states.

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Women in the workplace
5 February 2018 Employment

Women in the workplace

In South Africa, we have several laws ensuring the protection of women in the workplace. The Constitution of the Republic of South Africa confirms that “everyone is equal before the law and has the right to equal protection and benefit of the law”. Employment legislation has been enacted in order to give effect to the Constitution and to protect all employees, including women in the workplace.

The rise of restraints: An inevitable reality during junk status
5 February 2018 Employment

The rise of restraints: An inevitable reality during junk status

South Africa has been unfortunate over recent months to experience more than one ratings downgrade to sub investment grade, otherwise known as junk status. This has not only resulted in an all-time low in investor confidence but has demanded that employers take an active role to protect their slice of the pie, so to speak.

TES ruling raises uncertainty for all sectors
5 February 2018 Employment

TES ruling raises uncertainty for all sectors

The Labour Appeal Court (LAC) recently delivered a judgment which could have significant implications for the South African labour market. The judgment specifies that employees of labour brokers who earn below the threshold for vulnerable employees, will become the permanent employees of the client at which they are placed after a period of three consecutive months.

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Chief Economist Dr Jammine at CDH's 'Junk Status' seminar
19 May 2017

Chief Economist Dr Jammine at CDH's 'Junk Status' seminar

Econometrix Director and Chief Economist Dr Azar Jammine told delegates at a Cliffe Dekker Hofmeyr 'Junk Status' seminar which took place on Thursday, 18 May, that "We haven’t had the worst-case scenario of a collapse in the rand that will cause our interest rates to soar”.

Team
28 March 2017

Team

At Cliffe Dekker Hofmeyr, we believe in partnerships. We believe that two heads are always better than one and that, when we work together, we are capable of producing amazing results. Results that benefit you and your business. Backed by our vast experience across a wide variety of industries and disciplines, we provide legal and business advice that is driven by rigorous analysis and commercial judgement. And that helps drive your business forward.

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3 October 2017 Dispute Resolution

"Unruly parents can get their kids expelled"

"Unruly parents can get their kids expelled" - National Practice Head for Dispute Resolution Tim Fletcher, together with Associate Fiorella Noriega Del Valle unpacked this highly topical issue.