Emigration Allowance
- The foreign capital allowance per emigrating family unit has been increased from R4 million to R8 million.
- Foreign capital allowance available to a single person has been increased from R2 million to R4 million.
Single Discretionary Allowance
- The previous limit of R500 000 has been increased to R750 000.
Customer Foreign Currency Accounts (C>F>C accounts) and foreign bank accounts
- The 180 day rule has been abolished.
- Entities are permitted to retain funds in their C.F.C accounts without the obligation to covert the funds into Rands.
- SA companies are permitted to open and control foreign bank accounts for the accrual of funds in respect of transmissions permissible.
Advance Payments and/or Cash with Order Requests
- The R250 000 limit on advance payments has been abolished.
- Foreign exchange in respect of advance payments and/or cash with order requests to pay for permissible imports other than capital goods, can be effected against the presentation of an invoice stating that the payment must be made in advance.
Imposition of administrative penalty
- SARS has introduced a system of strict new administrative penalties against non-compliant taxpayers as from 23 November 2009.
- Taxpayers had until 20 November 2009 to submit any outstanding returns in order to avoid being penalised under the new regime.
- The new penalties will be phased-in over a period of time:
- SARS will first impose the new penalties against repeat offenders (taxpayers who have failed to submit returns for multiple years).
- The new penalty system provides for recurring monthly penalties for each month that an income tax return remains outstanding.
- Penalty amounts are now, for the first time, determined according to the taxpayer’s taxable income (see table below).
- Taxpayers with multiple outstanding returns will receive a penalty assessment notice of the imposition of a penalty in respect of each outstanding return.
- Failure to submit these outstanding returns within 30 days will result in the implication of a second penalty, increasing by the same amount.
- Taxpayers, who have outstanding returns for prior years, must submit returns for these years on the current (2009) ITR12 income tax form, and not on the original return.
- Provisional taxpayers who are in good standing with SARS (i.e. they have no outstanding returns except the current 2009 return), and who make use of e-Filing, have until 28 February 2010 to submit their returns.
TOP 8 BUSINESS TIPS FOR SURVIVING CHALLENGING TIMES
#1: Manage your cash flow carefully
Cash flow and financing should be on the top agenda of every management meeting.
Monitor management accounts regularly, in order to identify trends early; and regularly update your cash-flow forecasts.
#2 : Focus on your margins
Cut costs and not your prices!
Stay focused on your customers, not suppliers, as your margin source.
#3 : Don’t forget the customer
Don’t assume they’re happy just because they’re not complaining.
Maintain your personal touch when pressure to stay competitive is at an all-time high.
#4 : Working capital management is key
- Working capital = creditors; debtors; and inventory
- Analyse debtor lists and chase up overdue accounts
- Negotiate better payment terms with suppliers.
- Closely control stock levels (dead stock costs you money!)
- Review your inventory insurance, as theft often increases in a downturn.
Do not stop advertising and PR efforts. Cutting advertising costs may mean a loss of customers to your competition. Increasing advertising in a recession will most probably win customers away from competition.
#6 : Reward top performers
Although attractive salary increases may not be possible, offer perks that don’t cost the company a lot of money. Get rid of poor performers!
#7 : Take a critical look at your plans and operations
Find ways to cut costs, increase productivity, and improve fiscal oversight.
#8 : Watch the competition... they’re watching you!
The advantage you build up in the present, may be difficult for competitors to surmount later on.
