Tivest (Pty) Ltd (‘Tivest’)

Tivest is a South African resident holding company with investments in a number of resident subsidiaries. Tivest earns dividends and interest from its investments, and it also provides administrative and management support, for which it charges fees to its subsidiaries. The total income of the company comprises 40% dividend income, 25% interest income and 35% management fees. The company meets the ‘trade’ requirement for South African tax purposes.

Tivest’s employee costs are made up of salaries and wages, and a provision for leave pay in respect of its head-office employees.

For Tivest’s year ended 31 December 2024, the salaries and wages expense included an amount of R80 000, which was paid to the marketing director of Tivest on 1 April 2024 as a sign-on bonus to keep him tied to his service contract for 24 months. The managing director will be required to repay a proportionate share of the full sign-on bonus if he resigns before the end of the 24-month period.

Source: Adapted from Wits. 2001.