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Tax on Rental Income

Posted 30 November 2015 under Tax Questions



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Mo says:
29 November 2015 at 16:11

Dear Sir/Madam

I am South African, but living and working in Kuwait. Back in Durban I own 2 properties which are rented out to tenants. Property 1 - rental income is R6200. 00 pm, monthly bond is R3500. 00, rates is R1600, monthly levy is R850. 00. Property 2 - rental income is R4500. 00, bond is R3550. 00 pm, rates is R350. 00, Levy is R700. 00. I have no other source of income in SA. Do I pay tax to SARS?

I was a registered tax payer whilst I worked in SA. But no longer. Please help. What should I do?

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TaxTimTaxTim says:
30 November 2015 at 16:43

Non-residents need to declare income and pay tax on income earned from a South African source only. However, the tax threshold is currently R73,650 per annum so earnings below this would not attract tax.

Please read our blog on Rental property deductions and note that only the interest portion on the monthly bond repayments is deductible.

Check your calculation of net rental income (using only the interest portion of the bond). If it falls below the tax threshold then no need to declare.


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