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Cross-border Joint Ventures & Tax

Jul 20, 2020
5 min

Cross-border Joint Ventures & Tax

Introduction It is common, when two or more persons or entities wish to join forces to collaborate on a specific project, that the parties will form a joint venture in connection with the project. A joint venture in South Africa is undertaken either via an incorporated joint venture or via an unincorporated joint venture. It is important that prior to entering into a joint venture, that the parties consider the relevant tax consequences beforehand. Incorporated joint venture

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The Importance Of Having an Independent Trustee for your Trust

Thinly Capitalised Companies & Cross-Border Transactions

May 27, 2020
5 min

Thinly Capitalised Companies & Cross-Border Transactions

Introduction A company is typically financed (or capitalised) through debt and/or equity. Thin capitalisation refers to the situation in which a company is financed through a relatively high level of debt compared to equity levels. Thin capitalisation occurs where a business/ entity/ company has been funded to an extent where the debt is not in proportion to the equity of the business/entity/company, to the extent to that its debt far exceeds its equity with the result that s

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Non-residents selling immovable property- S35A of the Income Tax Act 58 of 1962

May 11, 2020
6 min

Non-residents selling immovable property- S35A of the Income Tax Act 58 of 1962

When non-residents for tax purposes disposed of immovable property in South Africa, it was often difficult for the South African Revenue Services ("SARS") to collect the taxes due on the gains derived from the disposal of the immovable property. Section 35A of the Income Tax Act 58 of 1962 (the “Act”) was introduced in the Act with the intention that purchasers would be obliged to withhold a portion of the sale proceeds, and pay over same to SARS, to aide in the revenue colle

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Starting a new company and going offshore

May 7, 2020
3 min

Starting a new company and going offshore

Are you wanting to start a new company and potentially expand globally? Here are things you need to think about as we discuss a local company and going offshore. Local Company If you are going to start your business locally, how you structure your business tax-wise is important, as it is going to define how much tax you pay in the long-run. Many people think that in order to start a business, you need to register a company, which is not the case. You may want to consider a co

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