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SA non-resident with rental property in SA what are the tax implications?

Posted 31 January 2014

I used to live and work in SA but then moved to the UK 8 years ago. Since then I have and still am working full time in the UK for a UK employer paying UK PAYE and now have UK citizenship.

For the last 4 years I have been sending money back to my SA bank account and used that money to purchase a rental property in SA.

As an example using dummy numbers for simplicity:
Purchase price: R100k
Deposit: R50k
Bond: R50k

Rental Income: R20k p.a.
Less bond: R10k p.a.
Less levy: R2k p.a.
Less agent fee: R2k p.a.
Less rates: R2k p.a.
Net Income: R4k p.a.

Question 1: Are there any tax implications of me sending money from the UK to my SA bank account?
Question 2: Are all of the expenses I listed above deductible and if so, do I need to complete a tax return
as the R4k is less than the R64k that is non taxable per year?

TaxTim TaxTim says:
3 February 2014 at 5:59

If your net income is less than the threshold then no you will not need to complete a return as there is no tax to pay. However for completeness it is often best to submit a return, even if it results in no tax.

All those deductions are allowed except for the full bond, only the interest is allowable as a deduction, not the mortgage part of the bond.

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