Tag: Tax

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Business Rescue vs Liquidation: What is The Difference?

South Africa has been experiencing very slow economic growth which impacts on the investment outlook that international rating agencies has on the country. As of May 2021, Moody’s currently rates South Africa at Ba2 (two rungs below investment grade), with a negative outlook This, and a myriad of other factors, have negatively impacted South African […]

CONTINUE READING Business Rescue vs Liquidation: What is The Difference? 4 min read
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The Fundamentals of a Business Rescue

There is no denying that the South African economy, as with the rest of the global markets, has been severely impacted by the COVID19 pandemic, which was exacerbated by South Africa’s ensuing economic downgrade to junk status. Many distressed company owners are probably lying awake at night, contemplating how their businesses will continue to remain […]

CONTINUE READING The Fundamentals of a Business Rescue 3 min read
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Tax Consequences – What Constitutes a Dividend

What constitutes a dividend? Although there are several exclusions to the general rule, South Africa applies a withholding tax on dividends declared by companies at a rate of 20%. It is essential to appreciate that such a withholding obligation for companies do not arise only on “ordinary” dividends but that the concept of what constitutes a dividend, goes much […]

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R&D Provides Great Tax Incentives

R&D Provides Great Tax Incentives, But that’s only one benefit Google, Tesla, Apple … These are all companies that we associate with innovation and technological advancement. Of course, we know that the developments that they make in the world of business come down to tons of research and development (R&D). With all the resources at their disposal, they […]

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Tax Consequences – Buying Out A Shareholder

Buying out Shareholders We are often approached by clients to advise on the most tax efficient manner in which a shareholder can sell an investment in a private company. Typically, the parties involve a majority shareholder of a company that is interested in buying out the minority shareholders in the company. In essence, two options […]

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