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Expat Tax, Bookkeeping, Bookkeeping Services Hermanus

Expat Tax in South Africa

December 1, 2021

Previously, South African tax residents who worked abroad for longer than 183 days (of which 60 were consecutive) annually were tax exempt on their foreign employment earnings. This changed in March 2020, with an update to the Income Tax Act that closed the tax exemption loophole for South Africans living abroad

Trusts and taxation, Bookkeeping, Bookkeeping Services Hermanus

Trusts and Taxation – Beneficiaries

November 30, 2021

All trusts need to register with SARS. Trusts do not qualify for any of the rebates provided for in Section 6 of the Income Tax Act. In order to claim the benefits applicable to a Special Trust Type A (for example relief from Capital Gains Tax under certain circumstances), the trustees should apply at a SARS branch for classification.

Inheritance Tax, Bookkeeping, Bookkeeping Services Hermanus

Inheritance Tax – Explained what you need to know

November 29, 2021

In South Africa, there is no tax payable by a beneficiary on assets received from an inheritance. SARS explains the situation as follows: ‘An asset inherited is a “capital receipt” and is therefore not included in the taxpayer’s gross income. Therefore, in South Africa, there is no tax payable by a person who receives an inheritance. Capital Gains Tax (CGT) is also not payable by the recipient of an inheritance.’

Being Audited or Selected for Verification

November 29, 2021

What is a SARS Audit? It is an examination of the financial and accounting records and/or the supporting documents of the taxpayer to determine whether the taxpayer has correctly declared his/her tax position to SARS. Where the taxpayer has not made a declaration or filed a return, it is an investigation regarding whether the taxpayer’s actions complies with the provisions of the relevant tax legislation.