- SARS’ Binding General Rulings 40 and 41 clarify VAT vs PAYE treatment of non-executive directors (NED)
- Recent CJEU ruling questions whether NEDs in South Africa should be viewed as taxable persons for VAT purposes
- South African view on VAT for NEDs is based on King III report, which considers NEDs as independent from company they serve on
- SARS interprets fees paid to NEDs as not “remuneration” and subject to VAT
- Debate arises on whether NEDs can truly be considered independent from the companies they serve on
- SARS’ rulings 40 and 41 still hold despite ongoing debate.
Source: mmsgroup.co.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
