April 2019 UAE visit and client meetings

D-day for South African Tax Resident Expatriate Taxpayers Earning Foreign Remuneration!

Come listen to the experts!

Presenter : Hugo van Zyl

Date: 26th April

Time : 14h00 ‚Äď 16h30

Venue : Al Ghazal golf club, Abu Dhabi (next to airport)

Cost : AED 100 (to cover costs)

28 April – 1 May 1-on-1 Meetings in Dubai

D-day for South African Tax Resident Expatriate Taxpayers Earning Foreign Remuneration!

Effective 1 March 2020 South African tax residents living abroad will no longer be automatically exempt from tax in South Africa on their foreign employment income.

Time out of South Africa is not an automatic guarantee that you are no longer a South African resident taxpayer! Double Taxation Treaties may also not work to your benefit!

The removal of the exemption has resulted in considerable confusion with many advisors stating that the only way to sever the tax link to South Africa is to formally (financially) emigrate. This is not always the solution as it creates problems of its own.

Know any #Saffas pilot or crew “working on board” for ūüá¶ūüá™ Dubai / UAE employer? There is indeed special rules that may shield expat pilots in the UAE against the impact against #Tax2020. It may indeed be possible to be totally tax exempt on all income from employment provided the employer is not a South Africa company. Need to know more? Come meet me in Dubai 26 April – 2 May 2019.

Leading South African expert and internationally renowned speaker Hugo van Zyl will unpack all the complexities surrounding this change to the Income Tax Act as well as explain how the Double Taxation Treaty between South Africa and UAE may, or may not, apply to exempt you from tax in South Africa. He will answer questions such as who is responsible for the payment of the income tax, when is the tax due, can a credit be claimed for tax paid in the UAE, will certain benefits received in the UAE be classified as fringe benefits which are subject to tax in SA, how does the R1 million exemption for foreign employment income work?

He will also deal extensively with the difference between tax and financial emigration, and the unintended consequence and actual cash cost of each option.

South Africans, accountants, attorneys, financial advisors, payroll administrators, management companies in fact anyone who typically has South African clients should definitely NOT miss this presentation. In the past it was easy, provided that the South African resident stayed out of the country for 183 days with a continuous period of 60 days then they knew that they were exempt from tax. That will all changed and if you get this wrong then you or your client could end up under-declaring for tax resulting in penalties and interest!

We have some time before the promulgated law becomes effective, but its indeed real. It is promulgated and time to act is running out

Remember, this tax is a voluntary tax! You can either leave your status quo as is which may well result in you paying tax in SA or you can take active steps to ensure that you are not liable. The first step is education and this seminar will assist you to understand what option is best suited for you to ensure that you do not have to unnecessarily pay income tax in South Africa.

Presenter : Hugo vanContact Info

Hugo van Zyl is a South African Chartered Accountant and a registered Master Tax Practitioner with the South African Institute of Tax Practitioners. With more than 30 years’ experience in all matters relating to cross-border expatriate tax, cross-border trade, financial emigration, income tax and exchange controls he is considered as one of, if not the, leading experts on the new tax rules being implemented in 2020. He is a highly regarded speaker who has lectured both locally and internationally and has represented SARS, the SA Institute of Tax Professionals, the SA Institute of Chartered Accountants and STEP at various levels

FATCA in Afrikaans? BRS:AEOI? Is this Marmite on Toast you ask?

‚ÄúBRS: AEOI‚ÄĚ means Business Requirement Specification: Automatic Exchange of Information

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, we add a few new once, all from an SA perspective yet they are all well-known international acronyms or abbreviations.

Here they are, but it is not an exhaustive list:

  1. AEOI РAutomatic Exchange of Information aka AEFAI as per SARS press release on BRS
  2. AEFAI –¬†Automatic Exchange of Financial Account Information
  3. ATO – Australian Tax Office www.ato.gov.au
  4. BRS –¬†Business¬†¬† Requirement¬†¬† Specification or¬†Direct Data Flow Channel Guide¬†¬†aka¬†SARS Modernised 3rd Party Reporting platform, used to report inter alia PAYE, VAT, Investment Income (IT3’s).
  5. CRA – Canadian Revenue Authority –¬†http://www.cra-arc.gc.ca/menu-eng.html
  6. eFile Рthe South African online tax filing portal www.sarsefiling.co.za
  7. Excon – Exchange Control aka FinSurv- SA monetary laws administered by SARB
  8. FATCA РForeign Account Tax Compliance Act РFFI and other tax offices dotted over the word reports on you to the IRS. An USA Act see http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA
  9. FBAR – Report on Foreign Bank Account reporting – you tell IRS
  10. FFI Рforeign (non-USA) financial institutions РFATCA terminology compare with USFI or FI that is USA based
  11. FinSurv – Financial Surveillance, previously known as Control or SARB’s Exchange Control watchdog
  12. HMRC – Her Majesty’s Revenue & Customs – UK tax office¬†http://www.hmrc.gov.uk/
  13. IGA –¬†Model 1 and Model 2 intergovernmental agreements (IGA) or FATCA agreement between IRS and SA on the AEOI process using the BRS designed and implemented¬†in the various IGA jurisdictions
  14. IRD – Inland Revenue – New Zealand aka Maori as Te Tari Taake
  15. IRS – Inland Revenue Services in the USA www.irs.gov
  16. MTP (SA) – Master Tax Practitioner in SA – the Who’s Who in SA tax environment¬†
  17. PR РTax practitioner registered with SARS
  18. SARB – South African Reserve Bank, equivalent to the Central Bank in international terms www.resbank.co.za
  19. SARS – South African Revenue Service – www.sars.gov.za
  20. TAA – Tax Administration Act – South African Act dealing with C:SARS rights to administer tax acts
  21. USFI –¬†U.S. financial institutions the internal US hold Co aka as lead FI reporting for all FFI’s in the FI Group

OK, you still lost? Need some more info on all the buzz words and your compliance risk and obligation? Feel free to ask the questions: