Open letter to South Africa’s students‚ universities and government‚ represented by Minister in the .
rates hike eases inflation
The interest rate increases of the past year are starting to work and should help to ease inflation pressures over the medium-term. But chances of a further rate hike at the Monetary Policy Committee meeting in October have increased sharply, Old Mutual Investment Group SA (Omigsa) cautioned in its latest economic and investment views.
While data and event flow will determine what happens thereafter, Omigsa believes that the growing signs of a slowdown in consumer spending growth means we should be at or close to the peak in the rate cycle.
But rates are unlikely to be lowered any time soon, the group said.
The group expects market volatility to continue as sentiment is driving the market and investors are wavering between greed and fear.
"Against a backdrop of most companies publishing good results, we believe there is a strong fundamental support for ongoing performance from local equities," it said.
tax on capital gain
If you are a buyer of immovable property from non-resident sellers be advised that you have a new withholding obligation under a recently promulgated section of the Income Tax Act.
And failure to withhold could create personal liability for the buyer, the estate agent and the conveyancer.
Though non-residents are currently taxed on the sale of fixed property in South Africa as part of the Capital Gains Tax provisions, there has been no efficient system of withholding the tax on such transactions, says Johan Troskie, director at Deneys Reitz Attorneys.
As a result, foreign sellers have often walked away without having paid tax on capital gain.