Growing anticipation is placed on whether or not further changes can be expected for the definition of “enterprise”. Over the years, a number of amendments or publications have been issued or proposed to clarify the intent of legislature; including those changes for electronic services, passive income, insurance contracts and telecommunications services.
Complexities surrounding the definition
For various reasons, it is important to determine whether an activity performed by a business may constitute an “enterprise” in South Africa. The definition of “enterprise” is no dependent on place of residence. Therefore, foreign businesses must consider the impact of their activities in South Africa, whether a person is conducting an enterprise in South Africa and what other requirements must be met.