Posted on: 10-12-2015 in Expats
By Michele Carby
If you earn a South African based income you are required to file a tax return
If you earn a South African based income from any source, then you have to file a tax return. Furthermore, neither a unilateral tax exemption nor a tax treaty tax exemption will negate the need to file a return. You can, however, request a tax exemption or request not to be treated as a South African tax resident. This may be granted depending on circumstances. If so, then you will not need to file a return.
Exemptions to Filing a Tax Return in South Africa
If you fall under the following you may not have to file a tax return. In all instances, it is wise that you check with the tax office.
If you are employed in South Africa by a South African company who automatically deducts PAYE and you earn less than R350, 000 then you could well be exempt.
If you are a South African expat living in the UK you may be able to claim tax exemptions in South Africa if you have lived in the UK for more than 90 days, and can obtain a tax residency certificate from HMRC, or ATO in Australia.
If you can, you should be able to claim tax exemption on pensions, interest and other income. That said, rented property and income generated in South Africa will never be tax-exempt.
If you are working abroad as a South African expat you should be prepared to file a tax return, even if you are claiming the 183/60 day exemption.
If you are earning foreign income and can claim the 183/60 tax exemption you will still need to file a tax return as a provisional taxpayer.
Non – provisional E-Filing submissions should be received no later than 29th January 2016.
Making Sense of Tax and Investments
As you can see making sense of tax is not easy. There are a lot of regulations and a lot of places where potentially you could pay tax unnecessarily regardless of your residential status. Moreover, if you have investments such as a pension or insurances, becoming more tax efficient could see you having more money to invest.
As an award-winning financial planner and South African expat, I can help you determine if you are paying too much tax, and advise on your insurances and investments such as your pension.
For all of your wealth planning requirements, fill in the below form and Michele Carby will be in touch.