Showing posts from January, 2020

Key Points on South Africa Taxes

South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of where their income was earned. By contrast, non-residents are taxed on their income from a South African source. Since tax systems differ from country to country, there is a chance that a particular amount could be taxed twice. This possibility of double taxation is, however, often alleviated by tax relief contained in various Double Taxation Agreements (DTAs). These DTAs are international agreements contracted between countries to deal with potential competing taxing rights against the income of the same taxpayer. Under the provisions of the DTA, the non-resident’s remuneration earned in South Africa may not be subject to normal tax in South Africa where specific requirements are met.

Who is regarded as a non-resident?Let’s start by defining what we mean by "resident". Understanding that, you will know whether you meet the …

How To Form a US Corporation... Tax-Free

All things eventually come back into vogue, and the tax world is no different. In the early part of the 1980’s, C corporations were everywhere. Then, as part of the 1986 reform, Congress repealed theGeneral Utilities doctrine, reinstating double taxation upon liquidation of a corporation and relegating the “C” to the entity choice of last resort.

C corporations have returned to prominence. Why? For starters, there’s a new 21% corporate rate — down from 35% — and the potential to exclude all gain from the sale of stock five years down the road under Section 1202 that is specific to a C corporation. In addition, while the Tax Cuts and Jobs Act also added a 20% deduction for owners of flow-through businesses, many business owner — think: doctors, lawyers, accountants, actors, and athletes — aren’t eligible for the deduction. As a result; the effective federal corporate rate is pretty much equal as a C corporation when compared to an S corporation or partnership for many business owners, ca…