Specialising in tax and exchange control, Johan spent time with PwC in the UK, the financial capital of the globe, and on his return spent 3 years with PwC Cape Town in the Corporate International Tax department before joining STBB as a candidate attorney in 2011. Johan practices within the Corporate Commercial department and has extensive commercial drafting experience with a specific focus on business acquisitions, going-concern transactions and advises on tax aspects of commercial and property-related transactions. Since 2015 Johan heads the Non-Resident practice within STBB. His expert services range from assisting foreign investors in remitting their proceeds from fixed property out of South Africa and drafting and regularising loan agreements through the SARB to obtaining Tax Directives and various types of Tax Clearance Certificates from SARS. As an admitted attorney, conveyancer and registered tax practitioner, Johan’s skill set makes him an invaluable asset in advising and assisting STBB’s diverse clients.

Thought of the Week | Trusts – Tax Implications of Interest Free Loans

From 1 March 2017 new and existing interest free, or low interest loans made to trusts by a natural person or a company with a connected person relationship, will be subject to the tax implications of Section 7C.

Effectively, the interest concession, being the difference between the actual rate of interest levied on the loan and the official rate of interest (currently 8% p.a.), will be deemed to be a donation in hands of the lender and subject to donations tax of 20%. Some relief may however be available through the application of the annual donations tax exemption of R100,000.

Please follow this link for more information on this topic and the exclusions that apply.
To ensure effective tax planning we urge you to contact us to arrange a consultation.

Contact STBB | Smith Tabata Buchanan Boyes on STBB.