FAQ: I will be starting to work overseas, but have never worked in South Africa nor registered for tax. Will I need to register and pay tax while working overseas?
South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of where their income was earned. By contrast, non-residents are taxed on their income from a South African source. Foreign taxes proved to be payable to a foreign government may generally be credited against […]
FAQ: What will the effect of CGT be when calculating the deduction for donations, medical and retirement fund contributions?
The impact of a taxable capital gain on the calculation of certain deductions is as follows: Donations Under section 18A(1) of the Act a person is entitled to a deduction for qualifying donations to the extent that they do not exceed 10% of taxable income. Since a taxable capital gain forms part of taxable income […]
FAQ: I can’t access eFiling on my Linux operating system, as I can’t install the latest version of Flash?
We are aware of this issue, and as a workaround, you can install the Chrome browser on your Linux operating system. The Chrome browser has built-in plugins for the latest Flash version.
FAQ: Is maintenance paid in terms of a divorce court order taxable?
Any amount received by a spouse or ex-spouse by way of alimony or allowance or maintenance of such person under any judicial order, written agreement of separation or under any order of divorce, is exempt from normal tax under the Income Tax Act. The spouse who pays the maintenance is also not entitled to claim […]
FAQ: When must an income tax reference number be completed on the Income Tax Return for Trusts (ITR12T) for a beneficiary?
For beneficiary taxpayers, whether individuals, companies, or Trusts, the income tax reference number is mandatory if they are South African residents. If they are not South African residents, the income tax reference number is optional. In exceptional cases where an individual has a South African identity number but has not registered for tax (e.g., a […]
FAQ: What amount should be completed as the “Total value of the outstanding loans granted by the Trust” on the Income Tax Return (ITR12T)?
The total outstanding loan amount for the specific tax year must be completed on the ITR12T.
FAQ: Will the income statement of the Trust be required, when completing the Income Tax Return for Trusts (ITR12T)?
The income statement of the Trust will only be needed where local business income was received and must be filled in on the ITR12T.
FAQ: When selecting No to the first question “Have the banking, contact and trustee details been confirmed and verified” on the Income Tax Return for Trust (ITR12T), will I be able to continue completing the ITR12T?
The registered details of the Trust must first be confirmed, in order to complete the ITR12T. To do this either: Select “Yes” to question. The Registration Amendments and Verification Form RAV01 will open. Confirm the details and continue filling in the ITR12T or Alternatively, close the ITR12T and click ‘Maintain legal entity details’ on Income […]
FAQ: What if the Withholding Tax on Royalties Declaration (WTRD) isn’t sent in time?
If the foreign person doesn’t send the Withholding Tax on Royalties Declaration (WTRD), for either an exemption or a reduced rate, before payment of the royalty is made, they have three years in which correct this and re-submit to SARS. A refund may be claimed for the additional amount of tax paid, if needed.
FAQ: What if the royalty is paid in a foreign currency?
The amount of the royalty must be converted to South African rand (R) at the spot rate on the day the tax is withheld.
