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Offline merlin

EXPAT TAX ?
« on: February 27, 2019, 10:12:53 am »
https://businesstech.co.za/news/finance/293738/south-africas-big-expat-tax-is-coming/

I sometimes wonder how this will work? Will they tax me 45%on the other side and 45% this side. Then I need to live off 10% of salary...
And whit will I be paying SA for?
 

Offline the real Takbok

Re: EXPAT TAX ?
« Reply #1 on: March 01, 2019, 01:04:28 am »
Financially emigrate.
 

Offline merlin

Re: EXPAT TAX ?
« Reply #2 on: March 01, 2019, 06:22:48 am »
Thank's, we'll be following that route. Seems It's the fotm with SARB then SARS.
 


Offline Sam

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Re: EXPAT TAX ?
« Reply #4 on: March 01, 2019, 09:22:10 am »
Financially emigrate.

Problem with this is if you have a nice stash of assets that you've built up over a lifetime here. The emigration is considered a disposal for capital gains tax purposes, so you have to pay CGT on your assets. If you've been saving them in order to provide for your retirement, you're now relieved of 20% of their value.

As far as I understand, the first R1mill a year that you earn overseas isn't affected.

But ja......this should be considered a crime by a government against its citizens imho. I think this now makes us on of only 3 or 4 on the world that have this tax. (US is included in those 3 or 4, the others are all african to the best of my knowledge)
 

Offline Pumbaa

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Offline Amsterdam

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Re: EXPAT TAX ?
« Reply #6 on: March 21, 2019, 12:49:22 pm »
Some more info here -

http://www.taxconsulting.co.za/expatriate-tax-south-africa-brace-yourselves-the-lean-years-are-coming/?fbclid=IwAR0p5XtRtuyk0eDyMDBDx1R9wltIJB6dCnXRoDgBOg-pGURUlGAaukF5aMw

EXPATRIATE TAX EXEMPTION
NATIONAL TREASURY FEEDBACK


Kindly note that we asked Jerry Botha from Tax Consulting SA to give technical feedback which is factually accurate, but also non-technical, on the National Treasury Workshop. Where any member wants a more technical explanation around the items noted below, we have recorded the whole session which may be used to confirm accuracy of statements and we will also provide more detailed technical explanation on any item noted below, as requested by Members.
Background

The original proposed tax law amendment on South African expatriates working abroad in 2017 was announced in the 2016/17 Budget as indicating that it would only be applicable where an expatriate is not taxed in another country. This was perceived to be grossly unfair towards South Africa expatriates working abroad and they formed a petition (the expatriate petition group (hereinafter “the EPG”)). When the draft law was published, there was a large shift in policy where not only South African expatriates in low or no tax countries would be affected, but a complete removal of the expatriate tax exemption.

Executive Summary

The following main conclusions are noted –

The National Treasury Workshop was not successful for the EPG, with the tax law change definitely proceeding and the especially unfair taxation of fringe benefits (housing, security, vehicles, flights, insurances, school fees etc.) being confirmed as applicable.
 
The timing of this process was not ideal, but not something we can control. We note various economic reasons why we believe National Treasury may be so inflexible. There may also be political reasons, but these have not been clearly expressed to the best of our knowledge.
 
 There are very few tax practitioners or professional bodies supporting the cause of the EPG, despite expatriates being their clients.
 
For the collective, the future options are limited. The most obvious being what has worked before being directly taking the matter to Parliament. This can only be done where there is sufficient support and grounds as well.
 
For the individual expatriate, there is a clear indication that stronger enforcement will be forthcoming, including more detailed SARS tax return questions, audits and generally tougher questions being asked by SARS. This will come with the necessary penalties and prosecution, as the Standing Committee on Finance – Parliament of South Africa has made it clear that it wants to see “people in jail” for tax evasion. Each member must therefore please take responsibility and it is no longer the time to adopt a wait-and-see approach on compliance.
 
http://www.taxpetitiongroup.co.za/expatriate-tax-exemption-national-treasury-feedback/?mc_cid=b7a3222184&mc_eid=ca338cf982
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