M & A Budget & Tax Update
Presenters : Carmen Westermeyer CA(SA)
Overview
Minister Godongwana delivered his maiden Annual Budget Speech on 21 February 2024. The Annual Budget Speech was one of the most anticipated events on the financial calendar. The Minister faced challenges such as electricity and infrastructure constraints, a sluggish economy, and an election year. While some sectors like tourism nearly returned to pre-COVID levels, issues such as a stagnant economy, lack of investor confidence, high unemployment, and a shrinking tax base persisted, making it difficult to balance the budget.
There was much speculation about the fiscal and tax policy changes the Minister might propose to stimulate the economy and assist those living below the poverty line. These announcements significantly impacted financial and business decisions due to their effect on taxpayers' profits and take-home pay.
The 2024 Annual Budget and Tax Update unpacked the tax proposals announced in the Budget Speech. Diane Seccombe explained the proposals in a practical manner, helping attendees understand their impact on business and personal finances.
Content
- Tax issues raised in the 2024 Budget Speech
- Cessation of residence and changes to retirement fund and tax-free investment contributions
- Retirement Fund transfers for members over 55
- Taxation of non-resident SA trust beneficiaries and negative tax implications
- Deduction of expenses against interest income and repeal of Practice Note 31
- Loans to offshore trusts in a foreign currency
- Allowance and recoupment for expenses incurred on plant and machinery used in renewable energy production
- Asset-for-shares swaps and cost of assets acquired
- VAT and residential property developers
- Tax administration amendments
- Recent selected court judgments and new SARS rulings and interpretations