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Investment and capital transfer

Posted 29 July 2015 under Tax Q&A


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Cara says:
27 July 2015 at 22:54

I have recently got married to a UK national and he is wanting to transfer some funds for an investment in SA. He is going to transfer the funds into my current account which I will then transfer into a unit trust.

Firstly do I need to submit a donations form they have on the SARS website and if it exceeds the R100,000 will it be liable for tax?
Secondly the income from the investment will be paid monthly. If it exceeds the R23,080 annual exemption what is the rate on the excess? Is it still taxable even if it is below R70,000 per year? I have no remuneration just the investment income.

Lastly when I register as a taxpayer will I be a provisional taxpayer and need to submit 2 payments per year?

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TaxTim TaxTim says:
28 July 2015 at 3:52

Is he giving you the money or are you just being the "conduit" for his investment?

Cara says:
28 July 2015 at 8:25

Giving me the money.

TaxTim TaxTim says:
28 July 2015 at 11:33

If he is giving you the money and he is not a tax resident of SA then there are not tax consequences as between spouses transfers can happen tax free anyway. You have the first R73 650 for the 2016 year as tax free and thereafter an additional interest exemption of R23 800.

Cara says:
29 July 2015 at 20:14

Thanks Tim
So can I confirm he will not need to submit a donations form?

Lastly ;) If I deposit say 500,000r in fixed deposit at 7.5% and get an income per year of 37,500r I will not need to notify SARS because my income will be below the annual threshold? I won't need to submit a tax return at all??

Thanks Tim

Cara

TaxTim TaxTim says:
29 July 2015 at 20:33

Yes as a non-resident he not subject to donations tax nor as your spouse.

We always advise filing a tax return to ensure compliance even if you are earning under the tax threshold.


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