A. Independent, quality financial statement audits
FBI TAX in South Africa provides independent audit services designed to enhance the reliability of information prepared by clients for use by investors, creditors and other stakeholders, within the ambit of country-specific statutory requirements. Our Audit practice also provides a range of other types of attestation reports.
B. Tax and Legal?
We are tax and legal advisors, working together to deliver business solutions to our clients. With our unique blend of skills and talents – our diverse team consists of Accountants, Attorneys, Economists, Engineers and other professionals – we seek, first and foremost, to understand our clients’ issues. Then, pooling our substantial collective experience in the South African tax legal system, case law and South African legislation, we work together to provide you, our client, with advice that is insightful of your issues, answerable to your unique requirements, and, increasingly importantly these days, adherent to the spirit of the legislation. So when you choose FBI TAX, not only will you receive solutions, you experience peace of mind.
Our client base includes listed and unlisted South African companies, offshore investors seeking to enter Africa or South Africa, the branches and local offices of offshore entities, trusts and high net-worth individuals. Our team includes accounting professionals with current International Financial Reporting Standards. This knowledge is critical to tax and legal advice which is to be applied by corporate clients complying with these standards.
Taxation Consulting
Our tax specialist can assist you to navigate an increasingly complex tax environment. Our focus on maximising tax planning opportunities, tax risk management and corporate tax governance allows us to work with you in partnership, so as to help manage your tax affairs using the best strategic tools in the most cost effective manner.
One of the ways we do this is by helping clients implement tax planning strategies in a measured and balanced way ensuring they minimise their overall tax liability. We handle a diverse range of matters from detailed reviews of complex tax returns to technical tax consulting assignments. Our approach to managing our clients’ tax issues, both strategic and routine, is proactive, assertive and successful.
Our areas of expertise:
Business
- Mergers and acquisitions
- Corporate re-organisation
- Tax compliance reviews
- Consulting
- Compliance
Personal
- High net worth individuals
- Tax planning
- Estate planning
- Consulting
- Compliance
International Tax
- Cross border transactions/ structuring
- Transfer pricing
Employees’ Tax
- PAYE reviews
- Payroll structuring
- Expatriates
Charitable organisations (Non Profit Organisations)
| To be compliant an NPO must comply with the following SA Laws: |
| 1) NPO Act, in terms of in house management, finance, and compilation of Annual Financial Statement rulings. |
| 2) The Department of social Development (DSD): |
| a. Registration of NPO- receive an NPO number. |
| b. Submissions of Annual Financial Statements within 9 months after year end. |
| c. As well as submissions of The Constitution & Narrative reports. |
| i. This is a basic summary of the NPO’s activities, details of office bearers, financial management, etc. |
| 3) SARS: |
| a. Registration as a Public Benefit Organization. |
| i. Receive a PBO number. |
| ii. NPO is Income Tax Exempt from date of registration. |
| iii. NPO is allowed to issue Donations certificates to Donors, who in turn receive a tax refund on their Individual |
| tax profiles. |
| In August 2015, The DSD completed an audit of all NPO’s in the region. Most NPO’s are non-compliant, due to: |
| 1) Insufficient guidance from the Government. |
| 2) Annual Financial Statements were required to be audited, which most NPO’s could not afford. |
| SAIBA NPO ASSIST, which is the South African Institute of Accounting Officers has joined hands with the DSD and SARS to assist NPO’s to become compliant. |
| The NPO Act had been amended accordingly allowing NPO’s to use Accounting Officers to handle their submissions to the DSD & SARS. |
| We, as members of NPO Assist, offer up to 50% discount on quotation. |
| 1) Kindly advise when we can meet, |
| 2) or you can email us what work is required. |
| 3) How many bank statements we looking at per month is vital. |
Indirect Tax
- VAT (consulting and compliance reviews)
- Transfer duty
VAT and Customs
Structuring your Indirect Taxes
Indirect taxes such as VAT and customs and excise duties increasingly present onerous responsibilities for businesses. Our specialists advise clients on a wide range of indirect taxes regarding all aspects of these taxes including compliance and reporting, dispute resolution and tax planning and implementation. We work with our clients to develop indirect tax strategies that align with their business strategies and we help client’s structure governance around the indirect tax function. Other services offered include:
- Tax opinions
- Indirect tax risk maps
- Indirect tax compliance reviews
- Import/export reviews
- Outsourcing of the indirect tax management function
- Process enhancements – VAT automation
- Supply chain exchange control reviews
- VAT cash management reviews
- Reviewing of legal agreements
- VAT structuring
- Year-end computation and tax return preparation
C. Enterprise (Sole Proprietory, Companies, Trust, Cooperates and other Entities)
We’re dedicated to working with businesses like yours. It’s all we do. Whether you’re an entrepreneur, family business, or a fast-growing company, we understand what’s important to you.
We can help you navigate your challenges—no matter the size and stage of your business. You gain access to —a trusted adviser to your company.The evolution of your business doesn’t stand still – it evolves. All companies have a business cycle—from a startup to a mature company, and each stage presents its own set of opportunities and challenges.
FBI TAX advisers understand what it takes for you to be successful at each stage of your business, whether you are looking to grow, or expand internationally, strengthen, or to exit your business.
Mergers, acquisitions and disposals
Whether you’re the buyer or the seller, our team will investigate potential opportunities, analyse the risks, threats and industry and offer creative solutions and recommendations.
Financial and tax due diligence
We perform due diligence reviews to assist you with regulatory requirements, tax structuring and financial modeling. We also act as intermediaries in closing transactions and assist in finding prospective buyers and sellers.Our expertise is not limited to the local market – if the potential business activity takes place internationally we draw on the resources of our associate companies around the world to offer you the best solution.
Listings
We assist with your company listing by planning the most appropriate corporate and capital structures in conjunction with other professional advisors. We issue the accountant’s reports for a prospectus and ensure that you comply with the necessary regulations in a cost-effective manner.
Valuations
We perform numerous valuations of shares and businesses for various purposes. We also perform valuations for purchase price allocations and of derivative instruments such as options.
Regulatory support
PKF performs fairness opinions as required by the JSE Listings Requirements and fair and reasonable opinions necessitated in terms of the Companies Act. We also act as reporting accountants for listed companies involved in transactions and issuing circulars.
Management buy-outs
Whether you need to de-list, buy out minorities or need to structure a management equity share programme, we can assist you. We also advise on share incentive schemes, capital raisings, suitable business structures, black economic empowerment, shareholder issues and buy-backs.
Corporate restructuring
Our services span corporate structures, strategy and direction, internal organisation and controls, recruitment and succession, cost and price analysis, capital raising, capital expenditure planning and business valuations.
New business formations
Your new business needs to be built on a solid foundation, with a suitable business structure and expert guidance. We can lead you through the myriad challenges and questions confronting your new venture – from preparing business plans, sources of finance, marketing plans, cash control management accounting, appraising new investments, applying computer technology to decentralizing incentives, taxation and personal financial matters.
Drafting Of Financial Statements.
E. Wills and Trusts
At FBI TAX we review and advise on wills and trusts, prepare trust financial statements and liaise with the Master of the High Court.
Don’t leave your assets to fate. Inheritance tax and the law of succession in South Africa, as well as how to prepare a last will and testament in South Africa are vital.
If you relocate to South Africa and buy property or settle here long-term, it’s important to understand the law of succession in South Africa and the inheritance tax that can apply. As a foreigner, it may be necessary to write a last will and testament in South Africa to ensure your assets are protected in the event of your death.
Law of succession in South Africa
Inheritance law in South Africa applies to everyone who owns property in the country. Law of succession in South Africa is covered by three parts:
- the Administration of Estates Act 1965, which regulates the disposal of deceased estates in South Africa;
- the Wills Act South Africa 1953;
- the Intestate Succession Act 1987, which is used in instances where the deceased did not leave a will.
The law of succession in South Africa generally allows residents to dispose of property as they wish with minimal restrictions, if they draw up a will. The main limitation is that if the surviving spouse has been excluded in a will and they are unable to maintain themselves, they can make a claim on the deceased estate through the Maintenance of Surviving Spouses Act.If there is no surviving spouse or dependents the estate is divided among parents and/or siblings or, if none, the nearest blood relatives.
Intestate Succession Act
When an individual dies without a will in South Africa, the estate is distributed according to the Intestate Succession Act. Intestate succession in South Africa allows for an estate to be divided between a surviving spouse and children, with the surviving spouse receiving at least R125,000. Excluding this, the estate is then divided equally between spouse and children. If spouses were married in community of property (i.e., they were joint owners) then one half of the estate goes to the surviving spouse and the other half is distributed according to the laws of intestate succession in South Africa.
In the event that you don’t leave a will in South Africa and have no immediate relatives among whom your estate can be distributed, the estate is then divided between the nearest blood relatives as per the Intestate Succession Act. If an estate cannot be or is not claimed within 30 years, then the estate is forfeited to the South African government.
Inheritance tax in South Africa
South African inheritance tax, or estate duty, is applicable to all estates valued above a certain amount. In addition, estates of the deceased may be subject to capital gains tax and donations tax.
Estate duty in South Africa is payable at a rate of 20% on the value of the real estate above R3.5 million. If the value of an estate is less than R3.5 million, then no estate duty applies. A higher fee of 25% applies to estates valued at more than R30 million.
According to the law of succession in South Africa, inheritance tax is payable within one year from the date of death, or 30 days from date of assessment if the assessment is completed within one year of the death date.
Capital gains tax, on the other hand, is payable before the estate is transferred to any beneficiary. Acquiring an asset is not subject to capital gain tax at the time of inheritance, and any capital gain or loss is only worked out when the asset is sold or disposed of.
Property or assets that are donated by the deceased during their lifetime rather than bequeathed after death are subject to a donations tax, which is also 20%, but the exemption threshold is much lower at R100,000.
Law of succession in South Africa for foreigners
Foreign residents will be liable to pay inheritance tax South Africa whether they are classified as tax residents or non-residents. For information on who qualifies as a tax resident or non-resident, read our guides on tax in South Africa and South African visas and permits.
Both residents and non-residents pay estate duty in South Africa at the same rate. The main difference is that residents pay estate duty on their worldwide assets whereas non-residents only pay estate duty in South Africa on property and assets located in the country. However, properties located outside of South Africa are exempt if they were acquired prior to residency or were inherited from or donated by someone who is not a South African resident.
There are no restrictions on buying property in South Africa by non-residents. Foreigners who acquire immovable property in South Africa, either through purchase or inheritance, need to register their ownership with the Registrar of Deeds where the property is located. Foreigners should ensure that their title deeds are marked as non-resident so that they can repatriate the proceeds if they sell the property.
Last will and testament in South Africa
Foreigners can draw up a will in South Africa provided it complies with the Wills Act South Africa. Wills drawn up in other countries are also recognized in South Africa as long as they also comply with South African inheritance law.
To avoid complications with the distribution of the estate, it is advisable to draw up a South African will if you have assets in South Africa. It is also permitted to draw up more than one will – one relating to South African assets and one relating to assets abroad. If you do this, it is advisable to consult a solicitor with international expertise to ensure one will does not negate the other.
Will template for South Africa
Drawing up your last will and testament in South Africa involves certain formalities, some of which are the same as in many countries. For example, you will need to appoint an executor to administer your estate in the event of your death. The executor will perform duties such as dealing with creditors and debtors and pay costs such as estate duty and funeral bills out of the estate account.
You can also draw up a South African will on your own provided you have witnesses, or you can enlist the help of a professional such as a solicitor, a bank or a professional will writer. You can also draw up a joint will with your spouse.
F. Broad-Based Black Economic Empowerment
We are able to issue Exempt Micro Enterprise (“EME”) certificates for Level 4 or Level 3 Contributors for our existing clients. Please note that we are not currently registered as an Accredited Verification Agency and are therefore not able to perform B-BBEE verification for entities other than EME’s. We will however assist clients to prepare for these verification audits.