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Tax obligations on monetary gift from foreign source?

Posted 22 October 2014 under Tax Questions



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I am a UK Citizen and have had Temporary Residence in South Africa for a few of years. I work in South Africa, have a valid work permit and am married to a South African.

My parents in the UK (who are British Citizens) would like to put a gift into my UK Bank Account of just over R1,000,000. My UK bank account has sat dormant for years and I submit my SARS Tax Return with the details of my active South African Bank Account. Will I, or my parents, have any tax obligations in South Africa in relation to the gift? Also, am I required to reflect the gift on my next Income Tax Return in South Africa?

Thank you for the excellent service that you provide.

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TaxTimTaxTim says:
23 October 2014 at 7:55

No, you don't have to worry about declaring that donation - you are not a South African citizen or tax resident yet based on the information you described.


TaxTim says:
23 October 2014 at 8:24

Thanks for the fast response. As I work in South Africa and have Temporary Residence in South Africa, it is my understanding that I am Tax Resident here. I have been earning a salary here for a number of years, have been paying PAYE and UIF, and have been performing ITR12 returns to SARS.

My parents, however, who are the donors of the gift are not South African Tax Resident.

Does the above information change your response to my question at all?

Thank you for all that you do.


TaxTimTaxTim says:
23 October 2014 at 14:55

You are not a tax resident in SA just because you work, but are obligated to pay tax on income earned in SA or from an SA source. Given that your parents are not SA residents and as long as the money they give you didn't originate from a SA source then it won;t be taxable.


TaxTim says:
23 October 2014 at 15:06

Thank you for your help - it is much appreciated.


TaxTimTaxTim says:
23 October 2014 at 15:37

Only a pleasure!


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