Tax, VAT, customs and trade alerts

We provide a wealth of publications by PwC South Africa providing informed commentary on current developments in the tax arena, both locally and internationally.
Through analysis and comment on new law and judicial decisions of interest, they assist business executives to identify developments and trends in tax law and revenue practice that might impact their business.
 

In this alert:

As advised in previous Tax Alerts, section 7C of the Income Tax Act, 1962 (Act No. 58 of 1962) (“the Act”), came into effect on 1 March 2017. Generally, the section applies in respect of any interest-free or low-interest loan provided to a trust by a person that is a related party (e.g. a founder or a beneficiary) in relation to the trust. The effect of the application of section 7C is that, effectively, the interest that is foregone by the person providing the loan to the trust is deemed to be a donation to the trust, which donation will attract donations tax.

The year of assessment ending on 28 February 2018 will generally be the first year of assessment in respect of which section 7C will deem donations to have been made. This Tax Alert serves to remind taxpayers of any compliance obligations that they might have in respect of this year of assessment.

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