My brother in law is a UK citizen, and wishes to gift his brother, my husband, a sum equal to R1.2 million rand. My husband is not South African, but a permanent resident here. It is his wish then to pay our mortgage bond here in SA with that money. What are the tax implications if any? The bond is registered in my name only. Do we have to declare the money?
There is no limitation on non tax residents donating to South Africans and especially to non-residents so he is able to receive this money. Donations between husband and wife are exempt from donations tax.
Hannasays: 9 June 2015 at 8:50
Amazing response time! thanks!
just to clarify, there will be absolutely no tax implication whatsoever?
Not for him or myself?
TaxTimsays: 9 June 2015 at 9:18
The only thing you have to watch out for is whether the original money came from a South African source to your brother in law. If this is not South African money and was earned overseas then there will not a problem.
Get SARS Tax Dates and Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.