Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get SARS Tax Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.
Try Tim Now

Tax on Receiving Foreign Funds over R100 000

Posted 23 November 2015 under Tax Questions



Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
Chris says:
23 November 2015 at 15:41

My mother is moving to RSA and wants to transfer an amount of R250 000 into my account to 'hold' for her until she sets up her RSA bank account. The amount is in EUR. I spoke to SARS who claim that I can declare it as 'non-taxable income/gift' in my tax returns. I asked them to clarify donations tax but they insist, it will not be counted as a donation unless I file an IT144?

a) is this true; every person and website I have checked with refer to donations tax @ 20% (on amounts > R100 000)

b) her local bank is charging her tax for this transaction- is it possible that she/myself will need to pay tax on this?

This entry was posted in Tax Questions and tagged , , , . Bookmark the permalink.

TaxTimTaxTim says:
23 November 2015 at 16:44

If you mother is a non-resident then there is no applicable donations tax. Furthermore she is not giving you the money, but you are acting as her agent. We cannot speak as to what the UK bank does unfortunately.


Chris says:
23 November 2015 at 16:56

Thank you guys, precisely the clarification I needed.


Get SARS Tax Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →