FREE | Read the October 2023 edition of Business Law & Tax
We consider, among others, competition law compliance, the effect of the likely introduction in 2025 of the backward-looking SA Overnight Index Average (Zaronia), and just how stringent SA's labour laws really are
The competition authorities could soon turn their attention to tackling practices affecting SA labour markets. Employers should therefore make sure their labour practices align with competition imperatives. Under certain competition laws and regulations noncompete and no-poaching agreements between employers and employees may be regarded as anticompetitive.
China is set to boost access for SA products, with Chinese companies recently signing 20 deals to buy products worth about R41bn from top SA firms.
Income arising in a South African trust that is distributed to a beneficiary in the same tax year is treated at present as the income of the beneficiary, irrespective of their tax residence. Effectively, the trust is disregarded. It is now proposed to forgo this regime in the event that the income is awarded to a foreign beneficiary. The rationale is to strike a balance between SA tax resident and non-resident beneficiaries of SA trusts.
The forward-looking Jibar, the benchmark interest rate that reflects the average cost of borrowing among major banks in the SA market and is the basis for most corporate lending in SA, likely will be replaced by the new backward-looking SA Overnight Index Average (Zaronia) in 2025. The interest rate for a Zaronia-based liability can be set only at the end of an interest period. The changeover to Zaronia should not be taken lightly. Move fast to assess its impact and whether you need to bring in professional assistance.
More on these stories and others, available in this month's edition of Business Law & Tax.