Declaration of interest earned on Fixed Deposit investments for tax purposes

Posted 22 February 2016

Good Day, my question relates to the declaration of interest accrued (but not necessarily paid) on Fixed Deposit investments for income tax purposes. I am a provisional tax payer and prefer to pay the tax in the tax year in which the interest is earned. For example, if I start a 24 month fixed deposit on 1st January 2016, maturing 31st December 2017, interest (simple) payable at maturity then is it permissible to declare the interest as follows assuming for simplicity that interest accrues at R100. 00 per day:...

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Tax on Foreign Pension

Posted 22 February 2016

Hello Tim, I am working outside of South Africa and for a US based company. I am more than half the year outside SA and one stint is more tham 60 Days. I have money in france which was part of a pension/savings plan from my previous employer. I paid 6 percent and they paid 6 percent each month. I want to bring this money back into SA, what do I have to declare? As all of this money were part of my salary that was invested while working abroad. All of it was invested in stocks.

Tax question on medical aid and correction for SARS

Posted 19 February 2016

I've just got back and seen the email from SARS. I have a few questions. 1. I made a mistake on the foreign Income, as it was through the business and not my personal account. I was busy doing my business accounts while filling in my personal tax and got confused. 2. My medical aid was paid by my previous employer. They forgot to cancel my medical aid and have asked me to pay them back for that year. I received a tax certificate from my medical aid so do I still qualify to claim tax from that?

ITSA requested shows a refund, will I get a refund?

Posted 11 February 2016

My SARS status is tax return assessed, and my SARS eFiling status correction filed. Therefore I requested a ITSA on 02. 02. 16, which shows a refund, but also shows selected for audit YES. Does this mean that I will get a refund or not please?

Monthly provisional tax payment and foreign exempt income

Posted 7 February 2016

Context: I am paid by a foreign employer in USD and will be processing tax payments in my own capacity. I understand from previous questions that I should register as a Provisional Tax Payer. I have two questions:
1) Is it possible to make monthly payments to SARS instead of at the 2 periods in time? If yes, how?
2) I will likely have to work outside the country for period of 183 days/ 61 days continuously - how do I go about getting the refund/ processing my tax given this?

UK property income disclosure

Posted 5 February 2016

I am due to become a SA tax resident in the next tax year if I stay (not my intention to stay, but may become a SA tax resident due to physical presence test). I have income from Uk properties which is declared on my uk tax return and uk tax is paid. I still have some net income. Questions:

1. How is this noted on my SA tax return. Ie after uk tax is paid? Or before with a credit for tax paid? But will be paying tax twice?

2. Where is this to be put on the tax return?
...

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Do independent contractors working for US company have to pay South African tax.

Posted 25 January 2016

Awesome website you have, I currently reside in Cape Town and I am a South African resident, I recently quit my South African job in July 2015. I started working for a US company as an independent contractor as of 1 September 2015 until present. I also freelance on the side for a South African business, I work about 6-8 hours a day for the US company and on average 6 hours a week for the South African based business. I would like to know, what are the tax implications in my case for South Africa...

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Tax rules for foreign income for SARS?

Posted 19 January 2016

Please advise the tax rules for working outside of SA? No income is earned in SA only abroad.

Tax rules for foreign income

Posted 15 January 2016

Please advise the tax rules for working outside of SA? No income is earned in SA only abroad.

Declaring Foreign Income

Posted 6 January 2016

Do you need to now declare your foreign income in your tax return? I work and live in Dubai and only tax return to South Africa once maximum twice a year for a maximum of 30 days. I file a tax return every year declaring my rental income and local interest from South Africa, but I do not declare my foreign income as I am out of the country for more than 184 days which 61 are consecutive.

Can the offshore tax law dates be changed?

Posted 12 December 2015

My husband works offshore on a ship for a few years now. We understand about the 183 days out of SA to be exempted from paying tax in South Africa. However, there was 3 months in this year where he had no work, so he might be a few days under the required amount of days needed to be exempted. I have heard that one's tax year does not have to fall under the same dates as the financial tax year? Is that correct? If so, can one use 12 months prior or after those 3 months he was at home, to still ...

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Working abroad

Posted 4 December 2015

I am working abroad and paying taxes abroad. I'm out of the country for more than 185 days a year as well as 90 days consecutively. How does my return filled in account for this?

How do I fill in my tax return for income received for local service from foreign employer

Posted 3 December 2015

I worked on a local project for an international aid organisation. I did not receive an IRP5. I was paid from an international account. How do I file this income on my tax return?

Do I have to spend 63 days out of the country before 28 February 2016 to not pay tax?

Posted 30 November 2015

I live and work in Malta but travel back to South Africa frequently. I did not have to pay tax for the 2015 tax year because I did 63 days out of the country starting in March 2014 and spent the relevant amount of time not in SA. In 2015 I incorrectly assumed that a day spent in transit did not count, but because in OR TAMBO you have to enter with your passport, I have not done 63 days for the 2016 tax year. Do I have to do 63 days out of SA before 28 February 2016? I read somewhere that the mon...

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Am I liable for SA tax?

Posted 27 November 2015

I am British, have my family and home in South Africa, work abroad for long periods of time and don't work in SA. Sometimes I take a long holiday at home - three or four months. I sign a contract for each company I work for abroad. Am I liable for SA income tax?

Am I tax resident or not?

Posted 24 November 2015

I moved from South Africa to work in Dubai in August 2014. I therefore was outside of South Africa for more than 183 days in 2015 tax year. From your previous answers, I identified that the income I earned while in Dubai will not be taxed in South Africa for 2015. However, does this mean that for 2015 tax year I am not considered a tax resident of South Africa or is it that I am still a tax resident but the income is not taxed? I will and work now in Dubai permanently.

What taxes would be applicable to my gross salary in UK?

Posted 24 November 2015

Dear Tim, I am a provisional tax payer in South Africa. What would my tax parameters be if employed and paid by UK company?

What if my 180 days does not line up with a tax year? When do I submit the 180 days out of SA?

Posted 22 November 2015

If I work for more than 183 days outside SA, but my 12 consecutive months does not line up with a specific tax year. Say the last month fall in the next tax year, does it then mean that I will get tax back that I have paid the previous tax year for the days outside SA?

Does a foreigner with a 5 year contract to work in SA need to file a tax return?

Posted 14 November 2015

If a taxpayer from Germany has a 5 year contract to work in South Africa for a South African employer (of an international company), would that taxpayer need to file a tax return? The employer registered the taxpayer for income tax and is deducting PAYE on a monthly basis. The taxpayer earns more than the threshold and will be tax returning to Germany after the contract.

Foreign service income exemption

Posted 13 November 2015

I was hoping to pick your big tax brain before I submit my tax return and cause chaos at SARS.... I qualify for S10(1)(o) in terms of foreign services rendered as I meet the requirements in this regard. My dilemma is I don't know which part of my income I can use to claim the applicable portion of this exemption i.e. Income (3601); Annual payment (3605) etc. To further complicate the situation I had share options exercised in the same tax year!

Would you mind confirming which source codes I can use in the claim?...

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Am i tax exempt, I have been out of the country for awhile.

Posted 9 November 2015

Hi, I worked 190 days out of the country in aggregate during the 12 months period and I was also
continuous for more than 60days in the 2014 tax year. In the 2015 tax year I was less than 183 days and less than 60days continuous, do I still qualify for my income to be exempt.

Tax for working abroad

Posted 6 November 2015

Hi Tim,
Is there a change to the tax exemption for offshore personal that are out the country for more than 183 days a year and have atleast one work trip longer than 60 consecutive days? Some rumors are flying around that these people will soon be taxed at rates of up to 45%.

Tax on Foreign income - away for 30 months?

Posted 31 October 2015

Im going to work in UAE, Abu Dhabi for 30 months. Do I need to pay tax on or even declare my foreign income with SARS?

Do I need to declare investments outside SA?

Posted 15 October 2015

I have been living outside of South Africa for longer than 2 years. I have been investing money outside of SA. The currency is USD. Do I need to declare this investment in my tax return. The money was earned outside the country, and I have not yet tax returned to SA.

Do I declare money sent from Abroad?

Posted 9 October 2015

I have been Living and earning outside of SA for 2 years now, most of the money that I have earned is invested outside of SA. I have however set money back to SA to cover misc expenses related to the rentl of my property. Does the money sent back to SA need to be entered onto my tax return? If so, how?
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