Tag Archive for South Africa

Expatriates Living Outside of South Africa – Must Answer These Questions Before Emigrating Financially

Hugo van zyl

Expats living outside SA must first answer the following questions before they agree to emigrate financially:

  1. Provide a family structure and background information on the immediate family, i.e.:
  2. Married, single, children?
    • Do your spouse and all your minor children reside with you in a foreign country
      • If not, provide some background information on the location and reason therefor, concerning your immediate family. Any intention for them to join you soon?
  3. Your family home in SA:
    • Did you sell or rent it out? If rented out, is it a long-term rental agreement?
  4. Do you own a holiday or house on the family farm, always available to you?
    • When you and you and the family visit South Africa, where will you reside?

And now the questions we will be asking:

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Written by | Posted in Financial Emigration • South Africa Tax

South African Tax Advisor Educates On Tax Acronyms

Hugo van Zyl, Tax Acronyms

(Post by TaxConnections Member in South Africa Hugo van Zyl)

There is so many new tax acronyms, one can’t be blamed for not always knowing the full phrase behind the tax acronym.

To guide you, all from a South African perspective yet they are all well-known international acronyms or abbreviations.

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Written by | Posted in Tax Acronyms • TaxConnections

South African 2018 Budget Speech

Report from our correspondent Lutando Mvovo, South Africa
Budget for 2018-19 – direct taxation.

The Budget for 2018-19 was presented to Parliament by the Minister of Finance on 21 February 2018. Details of the Budget with respect to direct taxation, which, unless stated otherwise, will apply from 1 March 2018, are summarized below. For details with respect to indirect taxation, see South Africa-1, News 22 February 2018.

(a) Corporate taxation
The Budget proposes, among other things, to:
– Review the controlled foreign company high tax exemption; Read More

Written by | Posted in South Africa Tax

Imposing Taxation On Tax Residents Of Other Countries

John Richardson

(This is Part 2 of my post discussing the South Africa tax situation. Part 1 is here.)

This is a follow up to my post exploring whether South Africa is moving to a tax system that is based on “citizenship-based taxation” or (in the case of the United States of America) “taxation-based citizenship”. That post was the result of a “special request”. The response from that first post included: Read More

Written by | Posted in Citizenship

Part 1: South Africa And The USA—Citizenship-Based Taxation

There have been a number of suggestions in various blogs that South Africa is somehow taxing on the basis of citizenship. American citizens (whether by accident or design) are most sensitive to any discussion of “citizenship-based taxation”. After all, U.S. tax policies combined with FATCA (which is part of the Internal Revenue Code) are destroying the lives of those who have entered the U.S. tax system.

I recently received an email that asked:

They’re talking about SA expats, people who no longer live in SA, being taxed by SA. Like us, these people are residents and earners in countries other than their country of origin (and, I would assume, citizenship). http://www.internationalinvestment.net/regions/south-african-expats-hit-tax-exemption-removal-plans/ If this is not CBT, on what basis are they being taxed? If SA is just wanting to expand its definition of tax residency on what basis do they feel they can apply this to someone who no longer lives in their country? Read More

Written by | Posted in Citizenship

Are You Dealing With South African Tax, Legal and Financial Questions?

Africa Tax Legal Financial Questions

We have good news for anyone conducting business in South Africa. One of our super smart tax experts, Dr. Daniel Erasmus recently acquired the Africa Tax, Law and Finance Hub and is offering complimentary access to the site for a limited time only.

We highly recommend you go view our tax professionals video section and scroll down to meet him in the video presentation he has on TaxConnections. If you have any business operations in South Africa, Dr. Erasmus is extraordinarily knowledgeable on the subject. Read More

Written by | Posted in Tax Legislation • Tax Planning • Tax Policy • Tax Tips • Tax Updates

Nene Nene – After Falling Off A Chair He Now Delivered The Goodies

So, in 2008, whilst on the rise, Minister Nene went crashing to the floor. (See Video Below.) Now, he is on top of it, in fact he was handed a poisonous chalice and survived. In fact, he survived so well he had some goodies to share with Expat South Africans.

Yes, one has to compliment the new Minister of Finance on his performance. Minister Nene, at times, had to force his fellow politicians to enjoy the tax lecture and austerity and budget cuts. Increasing the tax on sinners, smokers, gamblers and other naughty taxpayer did not help to make him too popular.

But the tablets were handed out, the jabs will follow later. The patient is indeed not yet able to leave the hospital. Increasing VAT to 15% would have ensured a cure but once Read More

Written by | Posted in Africa

Has Uncle Sam Gone Mad? FATCA, BRS, AEOI And Other Strange Words Pouring Into South Africa

In South Africa, the South African Revenue Service (SARS the local equivalent of the IRS) has just issued a draft public notice for comment and it refers to strange new terminology, not always correctly understood by the non-American resident.

Most US expats and failed SA expats returning from the USA with a green card in the back pocket, are all facing being caught red handed. Yes, for many years SARS was not the best of gossip queen in the OECD. The cam the Krok case and SARS received some interesting info from the ATO. Not only did SARS wake up to the word FOUNDATION they also saw the benefit of acting in “cohort” with another tax authority.

Suddenly the effort to make FATCA happen for FFI’s in South Africa, became an interesting Read More

Written by | Posted in Africa • FATCA • Federal • Income Tax • International • IRS • OVDP • Tax Controversy • Tax Fraud/Evasion/Crimes • Tax Risk Management

REITs – A South African perspective as an OTC investment option

iStock_ Africa Money and Flag XSmallReal Estate Investment Trusts or REITs is a well known internationally known appropriate business structure yet South Africa only adopted its tax law as of April 1st, 2013 and its stock exchange listed or publicly listed trading rules to accommodate REIT’s as of May 1st, 2013.

Since then many property groups not only converted to a listed REIT but also restructured their balance sheets to remove the debt linked to a unit or a share. Now, on September 6th, the first American Depositry Receipt (ADR) status was granted to a South African listed REIT. One ADR unit equals 10 REIT units on the Johannesburg Stock Exchange. Despite the ZA Rand being at a 3 week high, the more recent currency exchange is circa R10=1U$D.

Real Estate Investment Trusts (REIT)

REIT’s are tax transparent or tax through flow investment vehicles that invest in and derive their income from real estate properties and mortgage, without necessarily paying tax on their trade result. To qualify for the South African REIT dispensation, a the REIT (either a company or a trust) must be tax resident in South Africa and be listed as an REIT in terms of the JSE (Johannesburg Stock Exchange) listing requirements.

REIT profits are distributed as tax deductible expenses (effectively pre-tax income) which is then received and taxed in the investors’ hands as taxable dividend income. As of 1 January 2014 the SA dividend withholding tax at 15% or the treaty governed rate where the investor is resident in a treaty country, will apply to nonresident investors. Read More

Written by | Posted in Africa • International • North America • Property Tax • Real Estate • United States