February 2020


Leverage February 2020
In this edition of Leverage, Senior Legal Adviser, Sharon Hamman provides a reminder of the most recent legislative changes and recaps the most important changes that have taken place in the last year.Download


Retirement fund transfers
The following provides a ready reference list of the transfers allowed between retirement funds, prior to retirement.Download
Section 12J investments
Introduced to the Income Tax Act with the sole purpose of aiding economic growth by providing SMEs with access to equity finance, thereby creating jobs, the section both attracts investors to a sector that would not traditionally receive much attention and offers investors a tax incentive when investing in recognised Venture Capital Companies (VCC). This document examines the tax consequences of investing in a VCC, the requirements to be recognised as a VCC and who qualifies as an investee.Download
2020 Budget: Exchange control and emigration matters
In the most recent Budget, it emerged that the whole concept of emigration as we know it might change, leading to fears that government may prevent South Africans from emigrating in an attempt to retain the right to tax all their income in South Africa. This document attempts to confirm what was stated in the Budget, examines how it can be interpreted and the possible impact it may have. In addition, it focuses on documents released by the SA Reserve Bank to provide some much-needed context.Download
Budget 2020 summary
The most recent Budget brought with it the usual raft of changes to taxes, albeit not as severe as many had feared. The following is a summary of the current and future proposed tax changes to individuals and businesses that will impact our clients and the financial planning landscape.Download
Retirement funds and the de minimis rule
It is commonly known that the member is restricted to one third as a lump sum when dealing with a pension/pension preservation/retirement annuity fund. Currently, a member of a provident/provident preservation fund has unlimited access to the retirement interest on retirement. On 1 March 2021, all benefits accruing after that date will also become subject to the one third limitation. This article outlines the one instance where a member can access the full interest amount – the de minimus rule. Download
Divorce and retirement funds
This article summarises the legislation affecting the disbursement of pension funds in the event of a divorce, as well as the tax implications thereof, including topics such as deferred pensions, pension interest and the Government Employee Pension Fund.Download
Access to retirement funds upon emigration or the cessation of a visa
This article looks at the circumstances under which a person may withdraw pension funds (including a retirement annuity and preservation funds) if the person is emigrating or if their visa has expired and the administrative requirements thereof. Download