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New taxation rules for franchisors and franchisees

  • South Africa


    SARS has published draft guidelines for public comment by 12 February 2016, heralding what many may regard as controversial departure from franchising principles as we know them.

    The terms and conditions contained in one’s franchise agreement, as well as the way in which intellectual property is described and the manner in which payments expended and received for the use thereof are construed, are just some of the important departures that SARS is proposing in determining the tax implications of franchised business models.

    Please contact our IP department in the event that you require assistance in formulating sector or industry specific submissions to SARS alternatively, if you require assistance in interpreting the draft guidelines and updating your existing franchise and other IP license agreements.

    Read the guide on taxation of franchisors and franchisees


    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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