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Source: Rapport Deur Pieter-Louis Myburgh Sondag 05 Oktober 2014 3:07 nm.
Ryk Suid-Afrikaners emigreer in hul hordes omdat hulle vertroue in die land se ekonomie verloor het.
Voorts is Suid-Afrika se “argaïese” valutabeheerstelsel, wat veronderstel is om te verhinder dat te veel geld die land verlaat, ’n groot rede vir dié valuta-uittog.
Rapport het met drie finansiële praktisyns gepraat wat mense met hul geldsake help wanneer hulle emigreer of geld in die buiteland wil belê.
Al drie sê al hoe meer welvarende en hoogs opgeleide Suid-Afrikaners neem hul geld en vaardighede na die buiteland.
Dit kom nadat die Suid-Afrikaanse internet-miljardêr en ruimtereisiger Mark Shuttleworth die afgelope week ’n geskiedkundige sege teen die Suid-Afrikaanse Reserwebank in die appèlhof behaal het.
Die bank is beveel om die R250 miljoen wat Shuttleworth in 2001 onder protes moes betaal om sy fortuin van meer as R4 miljard na die buiteland te skuif, aan hom terug te betaal.
Shuttleworth het aangekondig hy gaan die geld in ’n trust belê om ander Suid-Afrikaners by te staan wat die regering oor grondwetlike kwessies in die howe wil pak.
“Miljarde der miljarde rande verlaat tans die land saam met welvarende Suid-Afrikaners wat emigreer,” sê Michael Honiball van die regsfirma Webber Wentzel se belastingafdeling.
Die presiese bedrae wat die land verlaat, is onbekend en die Reserwebank wou nie dié besonderhede aan Rapport beskikbaar stel nie.
“Kragtens art. 33 van die Suid-Afrikaanse Reserwebank-wet kan die Reserwebank nie hierdie inligting deel nie,” het Hlengani Mathebula, die bank se woordvoerder, in sy reaksie per e-pos geskryf.
Honiball sê dit is baie kommerwekkend om te sien in watter getalle welvarende Suid-Afrikaners die land verlaat.
“Dit is mense wat werk hier skep, ons het hulle nodig. Maar die wurggreep van (ekonomiese) regulasies waarmee ons hier moet worstel, dwing hulle om oorsee te gaan sake doen,” sê Honiball.
Hy kry veral te doen met plaaslike entrepreneurs wat hul maatskappye soms vir honderde miljoene rande verkoop en dan met hul fortuin na die buiteland trek.
Ryno Viljoen, stigter van die maatskappy Cashkows, sê hy kry nou tot 150 aansoeke elke maand van mense wat die land wil verlaat.
“Dit is skrikwekkend,” sê Viljoen. Hy hanteer kliënte wie se bates enigiets tussen R20 000 en R200 miljoen beloop.
Volgens Viljoen voel welvarende Suid-Afrikaners genoop om die land te verlaat omdat daar onsekerheid is oor kwessies soos eiendom- en grondregte.
“Dit het vir hulle meer sin om hul kapitaal na die buiteland te skuif,” sê Viljoen.
Hy is skepties oor die uitwerking van veldtogte wat Suid-Afrikaners in die buiteland aanmoedig om terug te kom.
“Uit my eie ervaring kan ek sê daar is baie min mense wat terugkom,” sê Viljoen.
Hugo van Zyl, ’n belastingpraktisyn wat in internasionale transaksies spesialiseer, sê net die pensioene van sy kliënte wat reeds oorsee is, beloop elke maand R9 miljoen.
Hy sê die Reserwebank se streng reëls oor intellektuele eiendom, waarvolgens Suid-Afrikaners nie patente in die buiteland kan registreer nie, dryf baie innoverende individue landuit.
“Hulle gaan doen hul navorsing oorsee in plekke soos Silicon Valley (in die VSA),” sê Van Zyl.
Honiball sê Suid-Afrika skiet homself in die voet met sy argaïese valutabeheerstelsel.
“Dink logies daaroor. Watter land ter wêreld laat jou nie toe om jou eie geld landuit te neem soos jy dit goeddink nie?
“Alle lande het in ’n mindere of meerdere mate valutabeheer, maar Suid-Afrika is die laaste land ter wêreld wat só streng is,” meen Honiball.
“BRS: AEOI” 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:
- AEOI – Automatic Exchange of Information aka AEFAI as per SARS press release on BRS
- AEFAI – Automatic Exchange of Financial Account Information
- ATO – Australian Tax Office www.ato.gov.au
- 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).
- CRA – Canadian Revenue Authority – http://www.cra-arc.gc.ca/menu-eng.html
- eFile – the South African online tax filing portal www.sarsefiling.co.za
- Excon – Exchange Control aka FinSurv- SA monetary laws administered by SARB
- FATCA – Foreign Account Tax Compliance Act – FFI 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
- FBAR – Report on Foreign Bank Account reporting – you tell IRS
- FFI – foreign (non-USA) financial institutions – FATCA terminology compare with USFI or FI that is USA based
- FinSurv – Financial Surveillance, previously known as Control or SARB’s Exchange Control watchdog
- HMRC – Her Majesty’s Revenue & Customs – UK tax office http://www.hmrc.gov.uk/
- 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
- IRD – Inland Revenue – New Zealand aka Maori as Te Tari Taake
- IRS – Inland Revenue Services in the USA www.irs.gov
- MTP (SA) – Master Tax Practitioner in SA – the Who’s Who in SA tax environment
- PR – Tax practitioner registered with SARS
- SARB – South African Reserve Bank, equivalent to the Central Bank in international terms www.resbank.co.za
- SARS – South African Revenue Service – www.sars.gov.za
- TAA – Tax Administration Act – South African Act dealing with C:SARS rights to administer tax acts
- 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:
You have just been told by the tax authority in your new home country they intend taxing you on the SA sourced pension and it is for you to obtain a refund and exemption in SA.
You asked your accountant in and he says the SA tax law and Schedule 4 to the Income Tax act does not provide for such a directive? You devastated and have no idea where to start?
Don’t despair Hugo van Zyl has seen and heard it all and their solution, custom made for your circumstances could be in hand within a few weeks. Yes, that includes, in most cases, the refund of double tax your suffered.
In most cases, so there are a few known issues?
Yes, there is. Expats living in Ireland and the Netherlands for example, will have to continue paying taxes in SA and claim an appropriate tax refund in their home country against their taxes in that country.
Expats in New Zealand, Australia, England, the USA and few other have reason to smile as the lump sum they received may be taxed in both countries but the monthly benefit may only be taxable in the said countries i.e. SARS in SA will need to exempt you.
For clients where there is uncertainty on the taxation of their SA lump sums, we suggest you page to the end of this article for the quote on addressing your tax issues. This article deals mainly with monthly or annual pension or annuity income.
Often there is has been highly technical articles published but where does one go to find practical solution? SARS procedures fails one and their EXPAT page’s email address bounces back as over loaded – great, typical SARS we hear the expats shout.
The tax benefits on monthly or annual retirement fund income from SA, which we are about to discuss, applies to most South Africans living abroad and formal SARB or Reserve Bank emigration or formal exit is not a pre-requisite to befit form the local pension exemption. It is important to understand that South Africans living abroad can be tax non-resident despite not having formally emigrated can be tax non-resident, yet each client needs to consider his or her tax residency position in terms of the applicable Double Tax Agreement (DTA or treaty). In Australia work permit resident are normally SA tax resident and not Australia tax resident, because of the unique provisions in the specific treaty. Expats living in the UK despite not having ILR (indefinite leave to remain status) may be SA tax non-resident and ordinarily UK tax resident. Confused? Make contact with our tax dream team and they will assist your to determine your correct tax status.
For now, we assume the tax treaty tie-breaker rules classified you tax non-resident in South Africa, with the result that you may suffer SA withholding taxes, SA taxes on immovable property and then local SA tax on so called SA sourced or deemed to be from a SA source, income. South African rental income, local pension and other retirement fund income such as living annuity and retirement annuity income, will be taxed by SARS – unless the treaty with your home country reduces or sometime removes the SARS taxing rights.
To summarise then, the SA Income Tax Act 1961, as amended (SAIT) provides, in dealing with non-residents, that they are taxed on so called SA sourced income unless there is a DTA or treaty restriction applicable.
We will review your personal position and revert to you with a clear indication on the taxes you may have overpaid in the past. Not only will they then assist to legally avoid this being repeated, they will, as the dream tax team, assist you to object to past assessments and collect a handsome refund from SARS. S, despite the technical explanation following, Hugo is ready to provide with a client specific easy to understand post tax emigration tax position.
In terms of many, but not all tax treaties, non-resident recipients of South African sourced pension income duly tax exempt in SA, are required to submit annual income tax returns. For this reason we suggest you cannot waive SARS goodbye despite the formal emigration and the perception that your now rid yourselves of the SARS shackles. Expats receiving SA pension, rental, and dividend or interest income need to carefully consider the option to keep their SARS tax number active, not only to benefit form a treaty but also to remain tax complaint in South Africa and you new home country.
Despite South Africa’s taxing rights being limited in terms of certain tax treaties, SARS is entitled to expect non-resident pension and other income recipients, filing IT12 income returns annual claiming tax exemption or tax reductions (where the latter is more applicable to dividend, interested and royalty income).
In terms of the treaty, the tax exemption is absolute and one would think that a tax residency certificate (TRC) sent to the fund’s payroll office should suffice, as there is no treaty requirement to obtain a tax deduction directive not to deduct PAYE (monthly tax withheld on your regular income, aka pay as you earn or payroll tax). Sadly, most clients discovered the tax man is not that accommodating and the fund manager’s refuse to be left making a tax residency call exempting certain but not all foreign resident pension beneficiaries.
In fact, the SARS processes totally lacks to accommodate treaty rules and in an effort to assist frustrated clients. Cashkows.Com will now launch a tax campaign to claim the tax exemption not on assessment but annual in advance. Expat or non-resident clients residing in Australia, England, New Zealand and America, now find the tax authorities in those countries refusing to allow a tax credit for taxes incorrectly or over paid in South Africa.
Don’t despair, we have heard you plea and sending your request and a short fact sheet on your personal circumstances, to Hugo van Zyl and the tax dream team will not only assist you in obtaining a PAYE or tax exempt status for the February 2014 year, they will also assist you in obtaining a refund of the immediate past two or three tax years where you perhaps overpaid taxes in South Africa.
Most important is to immediately request your new tax accountant or taxing authority for a tax residency certificate (TRC) covering the period or part of the period covered by the SA tax year 2014, which commences on 1 March 2013 and ends on the last day of February 2014.
General or other tax questions can be sent to Hugo van Zyl and you will find our 6 minute units, make specialist cross border tax advice most affordable as we will not charge you an hour for a quick five minute advisory note.
In short, never accept this mediocre treatment and email reply:
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