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Published: 04 Nov 2008 02:33:04 PST

South Africa

Business Environment

Business practices

For further information: South African business culture on the Communicaid website
For further information: South African culture and custom on the Kwintessential website
For further information: South African business culture on the Kwintessential website.
For further information: South African business culture on the Executiveplanet website
Closed hours and days: Offices are closed on Saturday and Sunday. Shops are open on Saturday till 1.00 p.m. and Banks are open till 11.00 a.m.

Public holidays

New Years Day	January 1
Human Rights' Day	March 21
Good Friday	April 6 (varies every year)
Family Day	April 9 (varies every year)
Freedom Day	April 27
Workers' Day	May 1
Youth Day	June 16
National Women's Day	August 9
Heritage Day	September 24
Day of Reconciliation	December 17
Christmas Day	December 25
Day of Goodwill	December 26

Compensation day: Yes, if a public holiday falls on the week-end, it is shifted to next Monday.

Periods when companies usually close

Christmas time(2-3 days)	Dec 25 - 27
New-Year time (1-2 days)	Jan 1 - 2
Generally companies remain closed for a week during the period starting from Christams to New Year.

Standards

National standards organizations

South African Bureau of Standards(SABS)
Engineering Council of South Africa (ECSA)

Integration in the international standards network

SABS is a member of :

International Standard organization (ISO)

International Electrotechnical Commission (IEC)

African Organisation for Standardisation (ARSO)

Classification of standards

Visit: SABS Standards

Online consultation of standards

SABS Online Standards Webstore

Certification organizations

South African National Accreditation System (SANAS)

Legal framework

Independence of justice

Yes

Equal treatment of nationals and foreigners

Foreign nationals can largely expect impartial trial from the country's judicial system.

The language of justice

In any of the official language of South Africa.

Having recourse to an interpreter

Services of an interpreter are available in case the language of the proceedings is not understood by the accused.

Sources of the law and legal similarities

The legal system is based on Roman-Dutch law and English common law.

South African commercial laws and company laws are similar to the laws of the United Kingdom.

Consulting national laws online

Acts Online
Legislation South Africa

Intellectual Property

National organizations

The national organization for the protection of trademarks and patents is the Department of Trade and Industry Companies and Intellectual Property Registration Office (CIPRO).

Also exits South African Institute of Intellectual Property Law.

South Africa signed the Agreement of Paris for the protection of industrial property, as well as the agreement establishing the World Intellectual property Organization (WIPO).

Regional organizations

African Regional Intellectual Property Organization (ARIPO)

International membership

Member of the WIPO
Signatory to the Paris Convention

National regulation and international agreements

Type of property	Law	Validity	International agreements signed
Patent	Patents Act, 1978.	20 years	Patent Cooperation Treaty
Trademark	Trade Marks Act, 1993.	10 years	Trademark law treaty Nice agreement concerning the International classification of goods and Services for the Purposes of the registration of Marks
Design	South African Designs Act 195 of 1993	Aesthetic design:15 years, Functional design:10years
Copyright	Copyright Act of 1978	50 years	Berne convention for the protection of Literary and Artistic Works
Industrial Models

Tax rates

Consumption taxes

Nature of the tax: VAT = Valued Added Tax ( BTW = Belasting op Toegevoegde Waarde)
Tax rate: 14%
Reduced tax rate: Reduced VAT rates range from 0% (on lighting paraffin, basic foods, diesel fuel and gasoline) up to 14%. For example, VAT on hotels and retirement hostels is charged at 8.4%.
Other consumption taxes: Public Benefit Organization under Section 30 of South Africa's Income Tax Act is eligible for exclusion from taxation.

Corporate taxes

Tax rate

Corporate tax	:	29%
Secondary tax	:	Secondary tax

Tax rate for foreign companies

Residents and locally controlled companies are taxed on worldwide income; while as foreign companies ( meeting certain criteria are considered non-resident for tax purposes ) are taxed on South African-source income and capital gains on immovable property in South Africa.

Capital gains taxation

Charged at the normal income tax rate on 50% of the gain i.e. at 14.5%.

Main allowable deductions and tax credit

Motor vehicle expenses, legal expenses, medical and dental expenses, bad and doubtful debts, and contributions to pension and provident funds and retirement annuities.

Lease premiums may be written off for the period of the lease. Municipal rates may also be deducted from taxable income.

Other corporate taxes

Capital duty, Payroll tax, Real property tax, Social security, Stamp duty, Transfer tax, Gift tax.

Individual taxes

Tax rate

Tax rates are progressive. There are six income brackets. The highest marginal tax rate is 40% and applies to income exceeding R 400,000. A marginal rate of 18% applies to income up to R100,000.

Allowable deductions and tax credit

Medical aid, Contributions to government approved pension and retirement funds, Charitable donations, etc.

Special expatriate tax regime

No special expatriate tax regime exits in South Africa. Expatriates are taxed at the same rates as locals, but only on their South African-sourced income.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: Double Taxation Agreements
Whithholding taxes: Withholding tax rates are 0% for dividends, 0% for interest and 12% for royalties.
Bilateral agreement

Sources of fiscal information

Tax Authorities: South African Revenue Service
Other domestic resources: South African Info; South African government online; Statistics South Africa (Stats SA)

Accounting rules

Tax year: 1st April to 31st March
Accounting standards: Accounting principles are very strict in South Africa and in accordance with International Accounting Standards Board.
Accounting regulation bodies: Accounting Standards Board
South African Institute of Chartered Accountants (SAICA)
Accounting reports: According to the international accounting rules.
Publication: All the companies must hold their accounts in English, these recordings must include: capital and obligations of the company, the fixed assets register, the incomes, the annual stock report, a summary of the goods sold and bought.
Moreover, they have to produce their annual financial statement. It must contain the balance sheet and the annexes, a report on the incomes with annexes, a report made authentified by the director, a report authentified by the executives and a profit and loss account.
Professional accountancy bodies: South African Institute of Chartered Accountants (SAICA)
South African Institute of Professional Accountants (SAIPA)
Certification and auditing: Independent Regulatory Board for Auditors (IRBA).
Accounting news: Accountancy SA
South Africa Accounting News