Stipend and Capital Gains Tax for student studying abroad

  Written by Evan   Posted 13 November 2015

I am a South African citizen who used to work in SA (tax registered), but have been studying full time in the UK since February 2015, being paid a monthly stipend of 1150 pounds by my financial sponsor (It sounds like a lot if converted to Rand, but it is barely enough). Do I have to pay tax on this income in South Africa?

I am about to sell a property in South Africa which I inherited from my Dad and the Taxable Capital Gain ((Proceeds - Base Cost - Annual Exclusion)*33.3%) will be r...

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Supporting documents for capital gains

  Written by Evan   Posted 12 November 2015

I just got notified that you submitted a revised ITR12 which records the primary residence exclusion of R2000 000. The new ITA34 I received now reflects an amount of -R14 290. 15. But now I am being audited. They are not clear on the documents that I have to submit. They ask for my IRP5, medical aid certificate, IT3B tax certificate. With regards to the capital gains part, there are no specific requests. Should I submit the final statement of accounts for the purchase and sale of my former resid...

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How do I account for various line items in IT3b Discovery investment certificate?

  Written by Evan   Posted 11 November 2015

I receive two tax certificates from Discovery for the same investment product. One is an IT3b, the other an IT3c. While the IT3c shows a source code of 4250, the IT3b does not show source codes. It shows "Gross foreign dividends", "Local interest voluntary", "Gross foreign interest" & "Local dividends (exempt)". It also shows withholding tax on 3 of them, and a "Net total".

When declaring my local interest earned, should I add just the "Local interest voluntary" amount from Discovery...

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Sale of primary residence

  Written by Marc   Posted 11 November 2015

My question relates to the sale of my primary residence in 2014 that I owned with my former spouse. We sold it upon divorce and shared the proceeds 50/50 after paying off the bond and other debt. The purchase price of the house was R1 875 000,00, transfer duty R67 000, transfer fees R17 000. What is the base price that I should put down in my tax form? Is it R1 875 000,00 (the amount that excludes transfer duty and transfer fees)? The house was sold for R2 400 000, 00. With refunds from bond etc...

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Tax and handling donation from non SA resident

  Written by Marc   Posted 9 November 2015

Dear Tim,
Are there any taxes due in South Africa, if my daughter (non SA resident, living in Australia and having Australian passport) donates money (more than ZAR100K) to her parents, and we do not transfer the money to SA and keep them within a bank outside SA (UK or other place) and in different currency?
1. Do we have to declare such a donation on our tax returns and what are the tax complications here?
2. Do we have to declare this account/amount every year in our tax returns and pay some taxes like capital gain tax as a result of Rand depreciation?...

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2nd property

  Written by Marc   Posted 8 November 2015

I have a 2nd property. Thats not my primary residence. We want to sell it. For R500 000. Bought it for R80 000. Owi g R200 000. What portion will go to tax. Do we pay tax on the resale value or the profit value. Thanks

Rental costs whilst unit is empty before next tenants

  Written by Marc   Posted 8 November 2015

Let's say people rented a property and they left end of June and you sold the property with transfer going through September and it's not your primary residence. Would you account for the costs of levy etc between July Aug and Sep as part of the rental income deductions section?
The property was for rental specifically.

Capital gains tax exemption

  Written by Marc   Posted 6 November 2015

I have to calculate capital gain on a rental property ( not a primary residence). It seems we can deduct a R30 000 natural person exemption. Does SARS eFiling automatically take off that R30 000 or am I supposed to put it in somewhere?

Is a UK property sale liable for SA CGT

  Written by Marc   Posted 5 November 2015

I've recently sold a property in the United Kingdom, and transferred the proceeds thereof over to South Africa. I'm a South African citizen, registered with SARS. Am I liable to pay capital gains tax here in SA?

Reclaim attorney costs

  Written by Marc   Posted 4 November 2015

Good day
I want to find out, I've bought a flat and it was registered in March 2015 on my name. Can I reclaim the attorney fees and where I complete it on the tax form, in other words, costs of Duty, transport costs, registration of deed
Thanks

Where do I declare the bond amount on rental income?

  Written by Evan   Posted 4 November 2015

I'm stuck in the section where I declare the rental income for a house I was renting out. I don't see where I put total I spent on the bond to justify that it was a loss against the rental income and the expenses incurred. Where do I do that?

Tax on foreign money

  Written by Marc   Posted 3 November 2015

If a SA resident invested money overseas and want to bring some of that now back to SA to live off as he is retiring, what will the tax implications be?

Where does the IT/IB 3(c) &(b) forms go on tax return?

  Written by Marc   Posted 3 November 2015

I have 2 satrix investment plans, how and where do I input the IT3(c) and IT3(B) Income Tax forms received from Satrix?

Foreign shares tax liability

  Written by Evan   Posted 31 October 2015

I have shares in a foreign stock exchange. I've had the shares for more than 5 years. If I sell these shares what is my tax liability? The shares are worth R400000.

When must Capital Gains Tax be declared?

  Written by Marc   Posted 29 October 2015

If Capital Gain tax I have incurred is less than the R30,000 allowance, do I still have to declare it in my Tax tax return?

Tax deduction for computer

  Written by Evan   Posted 29 October 2015

On the 31st January 2013, a company purchased computer equipment R34,750. This equipment was stolen on the 1st October 2014 and Insurance proceeds of R14,500 were received. What would the tax deduction be?

Do I declare capital investment into rental property in my ITR12?

  Written by Marc   Posted 28 October 2015

Hi TaxTim. When using capital to build or purchase a rental house, is this considered an investment of which the outlay of capital does not have to be declared in the tax year in which it was acquired? (I do not refer to the rental income or taxable portion of the rental income. ) Only in the event of selling the investment property would one then do the sums of proceeds of investment minus the base cost?

Capital Gain Tax on Sale of Shares by a Non Resident ?

  Written by Marc   Posted 28 October 2015

I am a non resident having Investment in Shares of a closely held company in south africa. Now I want to sell my shares to a Registered South African Company. Will this sale of shares attract Capital Gain Tax?

Refund on tax paid for shares payout

  Written by Evan   Posted 23 October 2015

Hi,
I was employed by Woolworths and we belonged to a share scheme where we had to stay in the companies employment for 5 to 8 years in order to qualify for the payout. All payouts were taxed. I am now unemployed. Do I have to submit a tax return for the shares payout that we received? Does SARS refund you the tax that you paid on that payout?

CAPITAL GAIN TAX ON A HOUSE

  Written by Marc   Posted 20 October 2015

As a private taxpayer, you letting out a house of yours for 7 years. Then you decide to live in the house yourself ( I believe the house then becomes you primary residence. ). For example, after 2,3 or even 7 years,you decide to sell the residence. With Capital gain tax in mind,do SARS handle it as normal CGT on a primary residence or because that you have letting it out, is there a special formula when culculate your liability for CGT on the house. I own more tha n one house..

What is the calculation if married IN community of property?

  Written by Marc   Posted 20 October 2015

I am married IN community of property. Would my capital gain be halved for tax purposes. If so,who carries out the calculation? Me or SARS

How do the selling of my home impact my personal income tax obligation?

  Written by Evan   Posted 13 October 2015

Hi Tim. I asked you previously what my tax obligation was on selling my house for R80,000.00. You replied that I do not need to pay tax for selling the house. How does that affect my personal tax obligations? Do I need to pay personal income tax on the R80,000.00 income I made for the year? Your help is dearly appreciated. Thanks.

Capital gains and recoupments

  Written by Marc   Posted 12 October 2015

If my selling price for an asset is R 2,258,548, Cost is R 2,800,000 and the Tax Value is R 1,120,000. What will my recoupment and capital gain be?

CGT tax rebates

  Written by Marc   Posted 6 October 2015

How does capital gains tax work on shares. I sold shares and need to calculate the CGT. The base cost is R99 per share. Do I get a rebate? Is this a once of rebate or a yearly rebate?

Non-resident tax implication on rental income?

  Written by Marc   Posted 5 October 2015

Myself and the wife ( non-residents / Irish citizens and tax payers) bought a property in South Africa in both our names. Does the R 65 000 tax exemption apply to each of us individually? The combined rental income is R 120 000 after expenses/deductions. We plan to invest the rental income in a flexible money market account at 5,75%. If the exemption applies to both i. O. W R 130 000 combined, do we have to register for tax?
Can flight tickets once in two years to oversee maintenance and i...

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