We assist businesses and individuals in South Africa with tax law advice, SARS disputes, transaction structuring, exchange control and tax compliance matters.
Caveat Legal’s tax lawyers in South Africa advise businesses, individuals and investors on the tax implications of commercial transactions, corporate restructures, investments, SARS disputes, exchange control and ongoing tax compliance. Our lawyers advise on income tax, VAT, capital gains tax, dividends withholding tax, donations tax, international tax and employees’ tax.
Tax law in South Africa changes regularly through legislative amendments, SARS guidance and court judgments. Individuals and businesses therefore need commercially grounded, ongoing tax advice from lawyers who understand both the legal and financial implications of tax decisions.
Our tax lawyers also assist with compliance work, representations to National Treasury and SARS on legislative amendments, advice on reportable arrangements, and the submission of Advance Tax Rulings to SARS.
Our tax lawyers assist taxpayers in resolving disputes with SARS, including drafting notices of objection and appeal and advising on Alternative Dispute Resolution and court processes.
We also advise on the South African exchange control implications of in- and outbound investments.
Tax law is complex and ever-changing and I enjoy assisting clients in understanding the tax implications of proposed transactions and structuring their affairs in the most tax efficient manner.
- Liesl Kruger, Caveat Panel Member
Clients
Tax Laws & Regulations in South Africa
There are many acts that fall within the ambit of Tax Law including the Income Tax Act, 1962 the Value-added Tax Act, 1991 the Tax Administration Act, 2011 the Estate Duty Act, 1955 the Skills Development Levy Act, 1991 and the Transfer Duty Act, 1949.
SARS Dispute Resolution
Taxpayers are increasingly faced with audits and investigations by SARS. These queries usually lead to SARS issuing additional assessments, necessitating taxpayers to embark on the litigation process, including the submission of letters of objection or appeal, the Alternate Dispute Resolution process and, in some instances, to proceed to the tax board or tax court.
Our specialists are very experienced’ with ‘Our tax lawyers are experienced’. Suggested revised sentence: ‘Our tax lawyers are experienced in this area of tax law, having assisted clients with the processes outlined above, including tax matters that proceeded to the High Court, Supreme Court of Appeal and Constitutional Court.
Income Tax
Our tax lawyers have experience across income tax matters, including corporate tax, property transactions, employee share incentive schemes, company restructuring, financial services taxation, insurance, structured products, investment and hedge fund structuring, and the taxation of derivatives.
We also advise on the income tax aspects applicable to natural persons, including the evaluation of a person’s residence status for tax purposes, acquisition and disposal of property, and emigration/immigration.
Capital gains tax
Our tax lawyers advise on capital gains tax matters, including determining the base cost of an asset, proceeds on disposal, exclusions and applicable rules.
International tax
We are able to assist with international structuring, whether inbound or outbound, and advise on the most efficient manner in which to structure these transactions. This includes the analysis of the relevant South African legislation, as well as the application of Double Taxation Agreements between South Africa and other jurisdictions.
Employees’ tax
Our team is well suited to advise on all areas of employees’ tax, including the determination of fringe benefits and the structuring of employment contracts.
Value-added tax
Our tax lawyers have experience with VAT matters, including advising on the VAT implications of corporate transactions, applicable exemptions and exclusions.
FAQs
Frequently asked questions on Tax Law
There are many acts that fall within the ambit of a Tax Law including the Income Tax Act, 1962 the Value-added Tax Act, 1991 the Tax Administration Act, 2011 the Estate Duty Act, 1955 the Skills Development Levy Act, 1991 and the Transfer Duty Act, 1949.
Income tax is the main tax in South Africa and is levied on the “gross income” received by any corporate, trust or natural person. The statutory law deals with the determination of a person’s income and the applicable inclusions and exemptions. There is also a wealth of common law in the South African tax realm, with many court cases contributing to the interpretation of the South African tax legislation.
SARS also regularly issues Interpretation Notes and Binding Private or Public Rulings that provide guidance on the interpretation of the principles of taxation.
There are many acts that fall within the ambit of a “tax law” including the Income Tax Act, 1962, the Value-added Tax Act, 1991, the Tax Administration Act, 2011, the Estate Duty Act, 1955, the Skills Development Levy Act, 1991, and the Transfer Duty Act, 1949.
South African tax law governs the taxes a business is liable for and how they are assessed, collected, and disputed – including income tax, VAT, employees’ tax (PAYE), dividends tax, transfer duty, and a range of sector-specific levies. It also covers structuring considerations, such as how a transaction or corporate structure is taxed, and the compliance and reporting obligations businesses owe to SARS.
The structure of a deal has a material impact on its tax outcome. A share sale is generally treated as a capital transaction for the seller (subject to capital gains tax), while an asset sale can trigger different tax consequences for each asset transferred, and may allow the buyer more flexibility on future depreciation allowances. Which structure is more tax-efficient depends on the specific assets, the parties’ tax positions, and the deal’s commercial drivers – it should be modelled early, not decided by default.
Transfer pricing rules require transactions between a South African subsidiary and its related foreign entities – such as intercompany loans, management fees, or the sale of goods and services – to be priced on an arm’s length basis, as if the parties were unrelated. Getting this wrong can result in SARS adjusting the taxable income of the local entity and imposing penalties. For multinational groups, transfer pricing policy and documentation is one of the higher-risk compliance areas and typically requires coordination between local and global tax teams.
A taxpayer who disagrees with a SARS assessment can lodge an objection within the prescribed period, setting out the grounds of dispute. If the objection is disallowed, the taxpayer can appeal – first potentially to the Tax Board or Tax Court, depending on the amount in dispute with further appeal rights up the court hierarchy. Strict time limits apply at each stage, so acting promptly on receipt of an assessment is critical to preserving your right to dispute it.
Caveat Legal’s tax lawyers include practitioners with experience advising on South African tax law, SARS disputes, transaction structuring, exchange control, VAT, income tax, capital gains tax, international tax and employees’ tax. Caveat gives clients direct access to experienced lawyers without the overhead of a traditional firm.’
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