The African Union announced in August 2020 that negotiations around the first commercial trade deal under the African Continental Free Trade Area Agreement (AfCFTA) would be finalized by January 2021, and that negotiations would take place via a new African Virtual Trade-Diplomacy Platform. Virusha Subban, Partner specializing in Customs and Trade at Baker McKenzie in Johannesburg discusses these latest developments and a likely focus on the trade in services.
The National Treasury in South Africa has implemented a deferment of excise duties in respect of payments, for excise compliant businesses in the tobacco and alcohol industries. This is due to the detrimental effect of lockdown restrictions on the sale of alcoholic beverages and tobacco products. Virusha Subban, Partner and Head of Tax, and Prenisha Govender, Associate in the Tax Practice at Baker McKenzie in Johannesburg, outline the key details of these deferrals.
At the end of July 2020, the National Treasury in South Africa released the Draft Taxation Laws Amendment Bill for comment. The Bill includes proposed amendments to both section 15 and section 36 of the Income Tax Act, effectively noting that capital expenditure allowances are only available to taxpayers that hold the relevant mineral rights. The proposed amendment, if passed in its current form, means that contract miners will not be entitled to claim any accelerated capital expenditure allowances, and will have to claim allowances for capital expenditure in terms of other provisions in the Income Tax Act. Denny Da Silva, Senior Tax Advisor at Baker McKenzie in Johannesburg, explains how this will impact contract miners.
At the end of July 2020, the National Treasury in South Africa released the Draft Taxation Laws Amendment Bill for comment. The Bill includes proposed amendments to both section 15 and section 36 of the Income Tax Act, effectively noting that capital expenditure allowances are only available to taxpayers that hold the relevant mineral rights. The proposed amendment, if passed in its current form, means that contract miners will not be entitled to claim any accelerated capital expenditure allowances, and will have to claim allowances for capital expenditure in terms of other provisions in the Income Tax Act. Denny Da Silva, Senior Tax Advisor at Baker McKenzie in Johannesburg, explains how this will impact contract miners.
In brief Countries around the globe are facing unprecedented and rapid change due COVID-19. South Africa is no exception, with the government introducing various relief schemes and new regulations in response to the devastating socioeconomic impacts of the pandemic. These developments have important implications for businesses and individuals in South…
In light of the operation of a 21-day national lockdown and President Cyril Ramaphosa’s declaration of a state of national disaster, the Department of Trade and Industry in South Africa introduced new export control measures on Friday, 27 March 2020. These measures came into operation with effect from 27 March…
On 23 March 2020, President Cyril Ramaphosa announced that South Africa would go into 21-day national lockdown, from midnight, Thursday 26 March 2020 to midnight, 16 April 2020. The effect on businesses and their employees will be harsh, and President Ramaphosa announced that Government will be taking several steps to…
On 28 February 2020, the South Africa Minister of Economic Development Ebrahim Patel announced he would again consider extending the Policy Directive on the Exportation of Ferrous and Non-Ferrous Waste and Scrap Metal to afford the National Treasury and Department of Trade and Industry more time to implement an export…
The Coronavirus (COVID-19) has resulted in mass production shutdowns and supply chain disruptions due to port closures in China, causing global ripple effects across all economic sectors in a rare “twin supply-demand shock”. With South Africa having just reported its first cases of COVID-19, Africa is beginning to feel its…
“Ex Africa Semper aliquid novi,” winning requires hard work, focus, time, patience and resilience. Finance Minister Tito Mboweni delivered his National Budget Speech on 26 February 2020, leaving South African taxpayers pleased by the implementation of tax relief on personal income tax, but disappointing those who indulge in alcoholic beverages…