Good Company, Great Fun and Memories Worth Making!

Who says you need a passport to travel the world? On 4 September, the Logista team proved that all you really need is a little creativity, a great sense of humour and some fantastic colleagues! Our “Around the World” themed bowls day brought a wonderful splash of international colour to the bowling green, with staff dressing up to represent countries of their choice. The outfits, the laughter and the enthusiasm made for a wonderfully festive atmosphere, with the Best Dressed competition adding an extra touch of friendly rivalry!

Of course, it wouldn’t be a proper Logista get-together without a good old-fashioned South African braai! Between the bowls, delicious food and plenty of catching up, the day was the perfect opportunity to put work aside, unwind and simply enjoy each other’s company.It’s these moments that remind us that being part of a great team is about more than what we achieve together at work. It’s also about the friendships we build, the laughter we share and the memories we create along the way.

A big thank you to everyone who joined in, dressed up and helped make the day such a memorable one!

The Fun Isn’t Over Yet!

There’s still plenty to look forward to on the Logista social calendar as we head towards the end of 2026!

• 16 October | Coming Together for a Good Cause
  We’re putting our team spirit to good use by taking part in a charity event. It’s a wonderful opportunity to give back and make a positive difference.
• 20 November | Let’s Celebrate!
  Our much-anticipated Year-End Function is just around the corner! It’s time to celebrate another year of hard work, shared successes and the people who make it all happen.
• 15 December | One Last Braai!
  Before we say goodbye to 2026, we’ll fire up the coals one last time for our final braai of the year. A chance to relax, share a few laughs and enjoy some festive cheer together.

Here’s to the people behind Logista, the moments that bring us together and many more reasons to celebrate!

Every day, too many taxpayers fall victim to convincing scams that use SARS’ name to steal personal information and money. Cybersecurity Awareness Month (every October) raises awareness about digital security, empowering South Africans to protect their personal data from digital forms of crime. It’s a good time to revisit the growing threat of SARS scams and eFiling profile hijackings.

Common SARS scam types

• Phishing emails: Members of the public randomly receive false ‘spoofed’ emails, made to look as if they were sent from SARS, but which are fraudulent. Examples include emails appearing to be from returns@sars.co.za or refunds@sars.co.za, indicating that taxpayers are eligible to receive tax refunds. These emails contain links to false forms and fake websites designed to look like SARS sites, with the aim of fooling taxpayers into entering personal information such as bank account details, which criminals then extract and use fraudulently.
• Fake SMS messages: SARS does not send *.htm or *.html attachments. Any SMS claiming to be from SARS with such attachments is fraudulent.
• Fake WhatsApp messages: SARS will not provide links to be opened or SARS bank account details for payments on a WhatsApp message.
• eFiling profile hijacking: Criminals gain access to taxpayers’ eFiling profiles, change banking details, and divert refunds.

What SARS will and won’t do

What to do if you suspect a scam 

Do not respond to communications that you suspect to be a scam. Simply contact us and let us provide certainty.

We will check whether the message is part of an official SARS communication campaign or if it’s a known scam message currently in circulation. If it’s a new scam, we can report it to the right authorities. Before you share personal information or make any payments, we can verify the communication through official SARS channels. For example, if the communication pertains to outstanding debt, we can verify this directly on SARS platforms, as any legitimate debt will reflect on your SARS profile.

How to stay safe beyond Cybersecurity Month 

• Do not open or respond to emails from unknown sources
• Be suspicious if a message asks for personal information or creates urgency
• Never share confidential details with unauthorised individuals
• Never click on any link to access SARS’ website or SARS services or to verify an account
• Only use secure internet platforms to access electronic services such as eFiling
• Enable two-factor authentication on eFiling profiles
• Use strong, unique passwords and change these regularly

SARS scams are becoming more sophisticated, but the rules for spotting them remain unchanged. When in doubt, and before taking any action, contact us.

Every small business owner knows the feeling: a promising candidate sails through the interview process, everyone loves them … And then a bigger company swoops in with a salary offer that simply can’t be matched.

It’s easy to assume the fight for talent is over before it starts. But compensation is only one variable in a much larger equation. In addition to cold hard cash, candidates today are looking for flexibility, growth potential, purpose, and how much their work actually matters. These are all areas where lean, close-knit companies often outperform corporate giants. Business advisors, HR experts, and small-business owners increasingly agree: the “war for talent” isn’t only won with bigger paychecks. It’s won by understanding what employees genuinely value and building an offer around it. Here are our 8 tips.

1. Lead with flexibility

Flexible work arrangements have become one of the most powerful, low-cost tools available to small employers. Staffing firm Spherion notes that many candidates weigh flexibility and growth opportunities just as heavily as salary, and that smaller companies tend to have far more room to build compelling offers around said flexibility. Data backs this up: research from the Harvard Business School found that a significant proportion of employees would accept a pay cut just to keep their remote work arrangement.

2. Make company culture your differentiator

Culture is a genuine competitive advantage for small teams. As staffing firm Beacon Hill notes, many professionals actually prefer working at smaller companies where they can see the direct impact of their work. Business owners who can’t win on salary may still win by offering something large employers structurally can’t: proximity to leadership, visibility, and a relaxed work-life balance. Small companies should lean into this rather than apologise for their size. Job postings, interviews, and onboarding should all reflect the authentic, non-corporate environment.

3. Prioritise cultural fit as much as skill

Hiring for the right personality can matter more than choosing the candidate with the most impressive CV. PureWow CEO Ryan Harwood has said he’d rather bring on someone slightly less talented who fits the culture perfectly than someone highly talented who doesn’t mesh with the team. For small businesses, where every hire has an outsized impact on daily operations, getting the right fit is doubly important.

4. Invest in growth and development

Career growth is one of the most persuasive, and least expensive, tools a small business has. The Small Business Association of Michigan points to LinkedIn’s Workplace Learning Report, which found that 94% of employees said they would stay at a company longer if it invested in their career development. Mentorship, cross-training, and covering the cost of a certification or course all send the same message: this company is invested in where you’re headed, not just what you can do for it today.

5. Recognise and reward often, informally and formally

Recognition costs a little and matters a lot. The Small Business Association of Michigan also recommends building in low- or no-cost perks. A relaxed dress code, team activities, a pet-friendly workplace, alongside regular recognition programs and small rewards to boost morale are all great ideas. Because small teams are more visible to leadership day-to-day, recognition can be personal and immediate rather than buried in an annual review cycle. A spontaneous gesture from the boss is often more meaningful to employees than the corporate version of the same action.

6. Move fast and communicate clearly during hiring

Large companies are often slowed down by layers of approval. Small businesses can turn speed into a selling point. Business.com points out that while a small business likely can’t offer the highest salaries in its market, it can offer the fastest hiring process. On top of speed, simple communication matters. Saïd Eastman, of JobsInTheUS.com, highlights how something as small as an automatic application confirmation, or a real phone number candidates can call with questions, signals respect for applicants’ time, and sets a small business apart.

7. Build the whole compensation picture, not just the base salary

Salary is only one line item in total compensation. HireHive’s guidance for small employers stresses looking at the entire compensation package, including health insurance, retirement contributions, flexible time off, and remote-work stipends. This can meaningfully close the gap between a small business’s offer and a larger competitor’s, without requiring the same payroll spend. That’s not to say salary isn’t important: the number you offer has to be realistic, of course.

8. Treat staffing as flexible, not fixed

Not every role needs to be a full-time hire on day one. Robert Half’s research into small-business staffing points back to management theorist Charles Handy’s “shamrock organization” model, blending core full-time staff with contractors and outsourced specialists, as a way to access skilled talent without committing to enterprise-level headcount costs. This approach lets small businesses bring in specialised expertise for a project or busy season, then scale back down, all while keeping the core team lean and well cared for.

When entrepreneurs imagine an exit, they usually picture three doors: a trade sale, a private-equity deal, or a family handover. Yet there is a fourth route that is often less discussed and, for the right company, more emotionally and strategically satisfying: selling the business to the people who already know it best. When properly structured, employee ownership is a succession strategy that can deliver liquidity to the founders, stability to the staff and continuity to the customers.

Beyond the obvious buyer

For many owners, employee sales may work because they offer benefits more traditional sales do not. External bidders may promise a premium, but they can also bring integration risks, redundancies, culture changes and potentially even the wholesale dismantling of what made the company valuable in the first place. Selling to your employees, on the other hand, may offer a route towards preserving the enterprise, rewarding the workforce and allowing you to retire without feeling like you’ve sold the soul of the business.

Is it even possible?

In a conventional business sale, accountants are commonly responsible for preparing financial statements, supporting due diligence and calculating the tax implications of the transaction. An employee ownership transaction requires a much broader advisory role. The first question your accountant (that’s us) must help you answer is the vital question of what the company is worth, and just how employees might be able to purchase it. Valuation may draw on normalising earnings, cash flow forecasts, comparable market multiples, the asset base and the particular risks of the business and ensuring accurate financial reporting. This will give you a clearer understanding of what the business is worth and whether the proposed transaction is financially sustainable. Where employees do not have the capital to purchase a business outright, it becomes important to evaluate the options available to finance the purchase as this will impact the viability of the transaction.

How to make it happen

Once you’ve established that selling to your employees is possible, you need to decide which route to take. In South Africa, there are many different ways of doing it. Employees may acquire shares directly, either individually or through an acquisition vehicle. Some employee ownership arrangements may be structured to hold shares collectively on behalf of employees, often through a trust or another ownership vehicle. B-BBEE objectives can also be incorporated into an employee ownership arrangement. There are many different ways to skin this cat. Each option carries different tax, governance and funding implications that change based on your company’s unique situation. Taking into account your wishes, and the financial landscape of the business, your accountant can determine exactly which of these methods is most viable.

Other considerations

Another thing which may impact the decision-making process is how taxation could be applied. Depending on how the deal is structured, founders may become liable for Capital Gains Tax on the disposal of their shares, while employees could face income tax implications if shares are acquired below market value or through certain incentive arrangements. Trusts, debt-funded acquisitions and phased ownership transfers can all influence the overall tax outcome, making early advice essential. As your accountants, we can model different scenarios, identify potential tax efficiencies and ensure the transaction complies with the requirements of the Income Tax Act while avoiding costly surprises for both buyer and seller.

The bottom line

Selling to employees is rarely the quickest or simplest exit. It demands careful structuring, realistic valuations, appropriate funding arrangements and ongoing governance. But for founders who value continuity as much as financial return, it can provide one of the most meaningful succession strategies out there.

Business entertainment expenses occupy a unique space in South African tax law. While they may or may not be deductible for income tax purposes under strict rules, a deduction of input VAT on these expenses is generally not allowed.

Income tax deduction? What the law says…

Under Section 11(a) of the Income Tax Act, an expense must satisfy four conditions to be deductible. It must be:

1. actually incurred
2. in the production of income
3. expended for the purposes of trade; and
4. not of a capital nature

As Judge Watermeyer explained in the landmark Port Elizabeth Electric Tramway Co v CIR case, expenses are deductible when they are “so closely linked to such acts as to be regarded as part of the cost of performing them.” In other words, you must be able to show that the entertainment was genuinely incurred for an income-producing business purpose and was sufficiently closely connected with your trade. The “production of income” test is the key battleground in entertainment expense disputes. Expenses such as meals, venue hire, and live entertainment may be deductible if the event has a genuine business purpose, for example, entertaining clients or suppliers. The purpose of the entertainment must be demonstrably commercial. You are required to retain sufficient records to demonstrate compliance with tax law. This might be in the form of a documented agenda or meeting notes, or a comprehensive function schedule including the date, venue, attendees, and the specific business objective. 

VAT? Almost never…

Even if an entertainment expense qualifies for an income tax deduction, you generally cannot deduct input VAT on entertainment such as client meals, beverages, or hospitality. That’s because Section 17(2)(a) of the VAT Act explicitly prohibits input tax deductions on entertainment. Entertainment is broadly defined in the VAT Act as “the provision of any food, beverages, accommodation, entertainment, amusement, recreation or hospitality of any kind.” This covers:

• staff refreshments (tea, coffee, snacks)
• business lunches and dinners
• catering for staff canteens
• annual functions (venue hire, entertainment, staff costs)
• marketing promotions and events
• entertaining clients at restaurants, bars and nightclubs

The exceptions

There are nine express exceptions to the prohibition on input VAT recovery for business entertainment expenses, of which two are especially important.

1. Where the vendor is in the business of supplying entertainment (to either customers or employees), the vendor may generally claim VAT on inputs used to make its taxable supplies, provided the statutory requirements are met. SARS explains that the entertainment must generally be supplied for consideration intended to cover the direct and indirect costs, or meet the relevant open-market-value rules.
2. Input VAT may generally be claimed on an employee’s qualifying meals and accommodation where the employee is required by their duties to spend at least one night away from both their usual residence and usual workplace, and the trip relates to making taxable supplies on behalf of the vendor.

Ducks in a row

The Tax Administration Act places the burden of proof on the taxpayer. To satisfy SARS during an audit, you must maintain contemporaneous records for every entertainment claim and retain these for at least five years from the submission date of the return in which the expense was claimed.  It’s a good idea to include the following:

1. Date and location of the event
2. Full names and company details of clients and staff present
3. A specific description of the business purpose or commercial discussion
4. Itemised tax invoices and proof of payment

Mind the audit

Professional advice is strongly recommended before claiming entertainment expenses, because a claim for entertainment expenses is likely to be flagged for investigation by SARS. Our expert oversight before claiming will ensure your tax position is verified, that you have adequate proof that the claims are for legitimate business expenses, and that the cost, time and risk of a SARS audit are justified by the tax savings claimed.

South Africans and foreigners crossing our border (on arrival and departure) are now required to complete one more step before they travel: an online declaration to SARS covering goods, cash and other items in their possession. The system, which is already in place across South Africa’s air, land and sea borders, became compulsory from 1 July 2026 and is part of a broader push to digitise customs controls and tighten oversight at the border.

A flurry of conspiracies

Since the announcement, social media has been flooded with conspiracy theory videos alleging ulterior motives. But the documentation released by SARS reveals travellers need not fear: this new requirement is not an income-tax filing in disguise. The available guidance makes clear that it is a customs measure aimed at simply improving how travellers declare goods, currency and other regulated items when entering or leaving the country.

So, what’s really going on?

SARS says the online process replaces much of the old manual declaration system and is intended to make compliance easier, create a smoother traveller experience and strengthen risk management at ports of entry. In practice, that means customs officials receive information earlier and can respond before a traveller reaches the inspection point. The system asks travellers to submit their details before travel, including passport information, travel plans, contact details and the names of companions. Adults must also complete declarations for children or infants travelling with them. Once the form is submitted, the traveller receives an electronic confirmation by email. That confirmation must be kept on a mobile phone or printed out, and it contains instructions on what to do at the port of entry or departure. Travellers arriving in South Africa are directed through customs according to those instructions, while departing passengers may be told whether they need to report to customs before leaving.

When will it impact you?

For businesspeople and frequent travellers, the commercial significance lies in what must be declared. Ordinary personal belongings such as clothing, a phone or a laptop for personal use do not need to be listed. But goods above duty-free thresholds, items intended for resale or business use, and cash above the legal limits do. The guidance provided in the source material states that goods with a value up to R5 000 per person are duty-free, while goods above that level may trigger duty and VAT, with normal customs duty and VAT applying above R25 000. Cash above R100 000 must also be declared. The rules haven’t changed, the method of declaration has. A traveller returning with expensive goods, a businessperson carrying samples, or an entrepreneur moving stock across the border may all face duties, VAT or reporting obligations depending on what they are carrying. The online declaration gives SARS a digital record in advance and gives travellers a clearer process to follow.

Tried and tested

SARS says the system was first piloted at OR Tambo, Cape Town International and King Shaka airports in 2022 before being expanded nationally. The message to travellers is straightforward: border declarations have moved online, and failing to declare goods or giving false information could lead to delays, penalties or the seizure of goods. For anyone crossing South Africa’s borders, customs compliance is now a digital-first process.

We all read the brochures. Automation was going to offer us a future where laborious and repetitive tasks were all handled instantly without human intervention. Jobs that used to take weeks would now take hours. Businesses rushed to automate every task they could in search of this promised utopia of lower wage bills and greater efficiency. But now, just a few years later, retailers are reopening staffed tills, customer-service teams are restoring human support, and executives are rethinking whether every process should be handed to software. Is it time for your business to go back on automation? Here are the signs.

Customers keep asking for human help

One of the clearest warning signs is persistent demand for human help. According to HubSpot and SurveyMonkey, 53% of consumers actively dislike or hate AI in service interactions, and 82% would still prefer human support even if the outcome and waiting time were identical. Five9 separately found that 86% of consumers rate empathy and human connection as more important than speed. For businesses, that matters because automation often looks efficient internally while feeling obstructive externally. If customers repeatedly seek an employee after going through a bot, menu or self-service loop, the system may be reducing convenience rather than improving it.

Your conversion percentages have been falling

In some settings, the mere presence of a human fallback improves commercial outcomes. A Management Science study examining a credit union’s self-service loan-approval process found that inviting customers to connect with a human loan agent increased the uptake of approved loans by 24%. Crucially, very few customers actually used the option, they just liked having it there. The finding suggests that access to human support can reduce anxiety, improve trust and make customers more comfortable completing important decisions. For firms operating in finance, healthcare, education, legal services or any emotionally charged sector, full automation may damage performance even when the process appears technically sound.

Your staff spends their time rescuing broken journeys

Automation often fails by pushing complexity downstream to employees. Payments service Klarna became one of the most visible examples of that correction. After loudly promoting an AI assistant that handled large volumes of customer chats, the company later moved to bring more people back into customer service, because, as its spokesperson put it, AI brings speed while people bring empathy.

If you find your team members are constantly stepping in to correct chatbot confusion, soothe irritated customers or solve exceptions the system cannot handle, not only is automation not saving work, it’s ruining your relationship with your customers as well.

Shrinkage, theft or abandoned sales

Retail offers perhaps the clearest example of automation being scaled back for hard commercial reasons. NBC News reported that Dollar General eliminated self-checkout at about 12,000 stores, and Five Below removed it in some high-risk locations. The common thread was not nostalgia for staffed tills; it was concern over shrinkage, scanning errors, and difficult customer experiences. While your business might be saving on staffing, if it’s losing margin through mistakes, misuse, walkaways or required oversight, the costs are simply being reallocated.

Is your business better?

In routine, low-stakes tasks, automation can be enormously useful. But where trust, nuance or reassurance matter, evidence increasingly shows that businesses need visible human support. The companies rethinking automation simply recognise that efficiency only counts when it improves the customer experience and frees people up to do higher-value work. If it damages trust, degrades quality or creates hidden costs, it is not smart automation at all. Ultimately, the question to ask yourself is not whether a task can be automated, but whether the business improves after it is. It’s vital that after a move to automation, you keep a keen eye on the numbers. As your accountants, we can help.

Most business owners believe that their personal will has the business covered too, but that’s usually not the case. First things first, your valid, updated Last Will and Testament (i.e. your personal will) must clearly state your instructions regarding the distribution of your business assets in your estate, be they company shares, member interest, or 100% of a sole proprietorship. Without this, your business assets will be distributed under the rules of intestate succession.

But that’s not the end of the story…

Firstly, the actual transfer of ownership in a business, even as dictated in a valid, updated personal will, remains subject to the company’s structure and its governing documents. If the company’s Memorandum of Incorporation (“MOI”) or Shareholders’ Agreement includes specific rules for the transfer of shares upon death, these rules must be followed. Secondly, a “business will”, commonly called a shareholder’s agreement, a buy-and-sell agreement, or succession plan, is essential. It focuses specifically on the company’s success when you or other partners or shareholders are no longer there. It should answer questions like who steps in to run things, who is entitled to buy shares, and at what price. And it typically includes insurance to cover the costs of appointing key people and the agreed share sales price when the time comes.

Why you need one…

Having a properly structured (and regularly updated) business will is important because:

• It prevents operational paralysis when the owner is no longer there. Without a clear plan, bank accounts can be frozen, signing authorities revoked, and employees left stranded without leadership.
• It helps to prevent family and partner conflict by eliminating guesswork between grieving family members who inherit paper value and business partners who need operational control.
• It secures fair valuation and liquidity, working with funding mechanisms like life insurance to ensure your estate receives fair market value for your shares immediately, rather than forcing a fire sale.
• It protects your legacy by ensuring the core vision, values, and strategic direction you built are smoothly transitioned to chosen successors.

And why you need to update it regularly

Having an up-to-date business will keeps your business positioned to take advantage of changing tax legislation. A current example is the increased capital gains tax (CGT) exemption for small business owners aged 55 and older who sell their businesses. For many business owners, the sale of their business is their primary retirement asset. The increased CGT exemption means more business owners now qualify for meaningful tax relief when they exit. The exemption is determined on an asset-by-asset basis, and each asset must have been held continuously for at least five years before disposal.

A well-structured and continuously updated business will ensures your succession plan aligns with these conditions so that you and your estate can benefit from the relief available.

Types of business wills

• A shareholders’ agreement can impose conditions on the transfer of shares, often taking into account the interests of the remaining shareholders, such as restrictions and approvals on transfer, pre-emptive rights and forced buyouts. Please note that the shareholders’ agreement must comply with the Companies Act and be consistent with the company’s MOI.
• A buy-and-sell agreement is sometimes referred to as a “business will” because it allows business owners to govern the relationship between the respective shareholders and to outline who will take over their shares in the business and at what price in the event of their death or retirement.
• A succession plan is a strategic business process to ensure continuity by preparing contingency plans for when key people in critical roles leave, retire, or pass away. It’s a good idea to include “key man” insurance to cover the costs involved.

Protect your business and your family

To circumvent the problems created by cash shortfalls, business owners are also encouraged to have personal investments outside of the business. A retirement annuity may be a sensible option since its proceeds generally enjoy significant protection from creditors, although access to the funds is restricted and they should not be regarded as a source of immediate liquidity. A life policy specifically structured to cover business debts can also make a significant difference.

The key is to work with financial, tax and legal advisers who understand the full picture. A business will that is reviewed and updated regularly – particularly when tax legislation changes, business value shifts, or ownership structures evolve – ensures your plan remains implementable and your beneficiaries are not left with a document that no longer fits the reality of your business. The cost of professional advice is small compared to the cost of getting it wrong.

The time is now

National Wills Month is the ideal time to review whether your business is properly protected – and whether your existing plan is still fit-for-purpose. Our team is ready to review your estate planning, your personal will and your business succession and exit strategy. We will help you structure a plan that protects what you have built.

SARS offers a range of rebates, incentives and deductions that can significantly reduce the tax you need to pay, if you know where to look. The challenge is knowing which ones will apply to your situation this Tax Filing Season 2026 and how to claim them correctly.

We’ve put together handy (but by no means exhaustive) lists for individuals and businesses.

For individuals

• Thanks to rebates available to taxpayers, you only start paying tax when you earn more than R95,750 if you are under 65. The threshold jumps to R148,217 for those aged between 65 and 75, and R165,689 if you are 75 or older. These are automatic deductions that reduce the tax you pay before any other relief is applied.
• Medical scheme contribution tax credits provide R364 per month for you and another R364 for your first dependent, plus R246 per month for each additional dependent. For taxpayers under 65, an additional credit of 25% may be available where the combined total of medical aid contributions above four times the medical tax credit, plus qualifying out-of-pocket medical expenses, exceeds 7.5% of taxable income. Taxpayers 65 and older, and those with disabilities, qualify for a 33.3% credit on medical aid contributions that exceed three times the medical tax credit received plus additional out-of-pocket medical expenses.
• Interest from a South African source of up to R23,800 per annum is exempt from income tax when earned by any natural person under 65 years of age (R34,500 over 65) or a deceased estate.
• Retirement fund contributions to a registered pension, provident or retirement annuity fund are deductible up to 27.5% of the greater of your taxable income or remuneration, calculated as per the income tax rules and capped at R350,000 per year. This is one of the most powerful ways to lower your tax bill while building long-term savings.
• Tax-free savings accounts remain one of the simplest ways to build wealth tax-efficiently. All returns, including interest, dividends and capital gains, are 100% tax-free. The annual contribution limit for the 2026 tax year was R36,000, and the lifetime limit is R500,000.
• If you work from home and have a dedicated home-office area used for your trade, you may be able to deduct a portion of your rent, utilities, rates and wear-and-tear on office furniture or equipment on a pro-rata basis. The rules are specific, and there are potential downsides to claiming, so professional guidance is recommended.
• Donations to section 18A-approved organisations are deductible up to 10% of taxable income calculated in accordance with legislation. Any excess is carried forward to the following tax year.

For businesses

• Small Business Corporations (SBCs) benefit from tax relief including immediate write-off of new plant or machinery. SBCs also benefit from a wear-and-tear or accelerated allowance on other depreciable assets and a progressive tax rate that can deliver substantial savings for qualifying smaller businesses.
• Micro businesses (with a total annual turnover of R1 million or less) may qualify for a simplified turnover tax, that replaces the usual taxes payable by companies, such as income tax, provisional tax and Capital Gains Tax (CGT).
• Some manufacturing businesses may also enjoy specific accelerated depreciation allowances for manufacturing machinery and certain assets used in the production of renewable energy.
• Employers who register SETA learnership agreements qualify for additional tax deductions beyond the actual training cost. This is a great way of reducing taxable income while building skills.
• Qualifying research and development costs are 150% deductible, with accelerated depreciation on R&D machinery and capital assets.

Other deductions worth noting include the Urban Development Zone allowance, the Special Economic Zones incentive offering a reduced corporate tax rate of 15%, and a potential accelerated building allowance for new and unused buildings and improvements to a building at 10% of cost per year. Business owners older than 55 might also qualify for a capital gains exemption when selling a business.

Do you qualify?

These are just some of the rebates, deductions and incentives available. The difference between a good tax outcome and a great one often comes down to knowing which relief measures apply and how to claim them correctly. Our team stays on top of every change so you don’t have to. If you would like to ensure you and your business don’t pay more than necessary this tax season, please get in touch. We will review your situation, identify every relief measure available, and make sure you do not pay a cent more tax than you should.

In South Africa, business compliance obligations are enforced by several different government bodies, each responsible for a different section of business oversight, and each with its own systems and requirements. Compliance is a strategic business priority today, not only because it is essential to business success, but also because it is ongoing, extremely expensive, and increasingly complex.

Compliance is essential

Non-compliance with business regulations can trigger financial penalties, audits, being flagged as non-compliant by CIPC, rejected funding applications, and missed commercial opportunities. Unpaid tax debt can be collected by SARS directly from a company’s bank account or another third party, like a client. Deregistration at CIPC means the company loses legal standing to contract, and this can result in, for example, the company’s bank account being closed by the financial institution. 

Compliance is ongoing

Compliance isn’t a once-off exercise. It’s an ongoing responsibility that evolves as your business starts interacting with banks, funders, clients, and regulators, employs staff, and generates more revenue. Local businesses are subject to ever more regulatory obligations that are not only increasingly complex but also constantly changing, demanding ever more human and financial resources.

Compliance is so expensive

Compliance costs are substantial in South Africa, roughly three to five times higher than in similar countries, according to the Free Market Foundation. “Across an estimated 150,000 SMEs, the aggregate cost of compliance is estimated at R270 – 450 billion annually, equating to roughly 4 – 6% of GDP.” The report continues: “For a medium-sized enterprise, direct compliance expenditures, including internal compliance staff, external advisors, licencing and filing fees, and reporting systems, range from R1.4 million to R3 million per year. When indirect costs (diversion of management time, lost strategic opportunities, risk mitigation activities) are included, the total annual burden may easily double.”

Compliance is for every business

For almost all businesses, essential compliance includes at the very least the requirements of the Companies and Intellectual Property Commission (CIPC), the South African Revenue Service (SARS) and the Department of Employment and Labour (DEL)

CIPC compliance: Annual returns and Beneficial Owner Registers

• Registration: CIPC registers and maintains records of private companies (Pty Ltds) and close corporations (CCs) in South Africa.
• Legal standing: CIPC compliance gives your business a legal registration number, recognition as a juristic person, the standing to contract with clients and institutions, and the ability to open a business bank account.
• Annual returns: Every registered company must submit annual returns (and other documents) to CIPC within 30 business days of its registration anniversary to confirm the business is active and to disclose annual turnover. Beneficial Owner Registers must also be filed annually or when beneficial ownership changes occur.

Consequences of non-compliance include late filing penalties, being marked as a non-compliant company, and – after two consecutive years of non-submission – possible deregistration. Deregistration can invalidate contracts and result in bank accounts being frozen.

SARS: Tax compliance

• Income tax: Companies are automatically registered for income tax when incorporated with CIPC, but compliance still requires submitting income tax returns annually, as well as provisional tax returns twice a year where applicable, while keeping accurate financial records and paying tax liabilities on time.
• Employee taxes: From the day your first employee starts, employee income tax (PAYE), Unemployment Insurance Fund contributions (UIF), and the Skills Development Levy (SDL) must be declared and paid monthly via the EMP201 return.
• VAT: VAT registration is mandatory once annual taxable supplies exceed R2.3 million in any 12-month period. Voluntary registration is allowed when taxable supplies exceed R120,000. VAT compliance typically means bi-monthly or monthly VAT201 submissions, accurate invoicing and strict record-keeping.

Tax non-compliance is one of the most common reasons businesses run into penalties, audits, or rejected funding applications, because many tenders, credit applications, and commercial contracts require proof of tax compliance in the form of a SARS TCS (Tax Compliance Status) PIN (Personal Identification Number).

DEL: Labour law compliance

• Written employment contracts and policies aligned with the Basic Conditions of Employment Act (BCEA), the Labour Relations Act (LRA), the National Minimum Wage Act (NMW) and any applicable sectoral determinations are critical.
• UIF registration is mandatory within 21 days after appointing the first employee who works at least 24 hours a month, using the DEL’s uFiling portal.
• The COIDA (Compensation for Occupational Injuries and Diseases Act) requires registration with the Compensation Fund to provide workplace injury compensation. Businesses must submit an annual Return of Earnings (ROE) to the DEL, declaring employees’ earnings, even in years with no incidents, to keep the crucial Letter of Good Standing valid.

Labour law non-compliance is a common cause of audits, inspections, and penalties. In addition, missing a ROE submission can delay the company’s Letter of Good Standing, holding up tender participation, contracts, and even site access.

Compliance as a strategic strength

Compliance can be a strategic strength. Proactively managed compliance protects organisations from risk, improves access to funding, maintains eligibility for opportunities and partnerships, and enables your business to thrive responsibly. We can assist you in all company compliance matters. Our expertise and years of experience will not only unlock all these benefits for you but will also save your company a great deal of time, hassle, and costs – now and in the long run.