Evaluating the use of international tax planning for South African businesses in pursuit of strategic growth

Abstract

This research examined the importance of international tax planning for South African businesses seeking to expand, hoping to address a noticeable lack of research on the topic in literature which calls for country-specific investigations. The aim was to investigate whether international tax planning is a crucial business strategy for South African businesses, identify key factors influencing their engagement in cross-border tax strategies, assess techniques commonly used by these businesses and contrast challenges encountered with those faced by their global counterparts. The study argues that there is a need for country specific investigations that demonstrate a nuanced understanding of the South African context in particular. Using qualitative data from tax advisors, the research reveals that while South African businesses adopt many of the same international tax planning techniques as global businesses. South African businesses face unique challenges due to local factors like exchange controls, political influences and aggressive tax collection by SARS. The findings underscore the need for tailored strategies that account for South Africa's unique regulatory environment while leveraging global tax practices to optimise business performance and sustainability. Future studies should focus on regional challenges faced by South African businesses in Africa.