TAX DIAGNOSTIC FOR SOUTH AFRICAN EXPATRIATES
Check Your Tax Status Per SARS’ Records.
MORE INFORMATION
We effectively provide a full compliance service for South Africans working in Africa. The cost-effective delivery of this service means that we adopt a structured approach only, thus we are assured that first-time accurate guidance is provided and that a compliant position is achieved at a reasonable cost.
The first step in this approach is to conduct a SARS tax diagnostic, where we review your compliance history and tax status as per the SARS record and to correct any historic non-compliance. This will provide the expatriate with a clear view of its tax affairs, compliance levels and allows us to plot appropriate actions or guidance required to ensure optimal and consistent compliance to mitigate and eliminate any tax compliance exposure.
The tax diagnostic will further also provide us with the required information surrounding the complexities of the expatriates’ tax returns to be able to provide a comprehensive service offering surrounding the expatriates tax affairs.
FREQUENTLY ASKED QUESTIONS/MISCONCEPTIONS
WILL I HAVE TO PAY TAX IF I DISCLOSE MY FOREIGN EARNED INCOME?
We would like to assess your situation first and there is, unfortunately, no quick answer. Whilst you must disclose your employment income, such employment income is exempt where you have met the Section 10(1)(o)(ii) exemption requirements. This means you disclose fully but only pay taxes where you earn more than R1.25 million. Part of our tax diagnostic will assess whether you have met the Section 10(1)(o)(ii) exemption requirements.
WHAT IF I HAVE A TAX CLEARANCE?
We would like to assess your situation first and there is, unfortunately, no quick answer. Whilst you must disclose your employment income, such employment income is exempt where you have met the Section 10(1)(o)(ii) exemption requirements. This means you disclose fully but only pay taxes where you earn more than R1.25 million. Part of our tax diagnostic will assess whether you have met the Section 10(1)(o)(ii) exemption requirements.
MY ACCOUNTANT OR TAX PRACTITIONER HAS BEEN DOING MY RETURNS, THEREFORE I AM COMPLIANT?
There are excellent tax practitioners/accountants in the market and on many we simply, and always, have to truthfully acknowledge, that we cannot do better work. Unfortunately, we often receive cases where the taxpayer is adamant that his/her accountant completed returns correctly and that the foreign employment income was correctly disclosed. When we investigate further with a tax diagnostic, we often find that zero returns were declared. Thus, the taxpayers were paying for a service where their accountant filed tax returns incorrectly. This just emphasizes again, you cannot trust blindly and have to always ask the correct questions to not be misled.
I AM NOT WORRIED ABOUT MY TAX COMPLIANCE, HOW WILL SARS EVER KNOW?
The most common question we hear from clients who have not disclosed all their income is, “How would they ever find out?”. While we all enjoy our privacy, unfortunately, our privacy is not protected when it comes to our income. The Revenue Authority must be paid its pound of flesh and with the Common Reporting Standards (“CRS”) there is nowhere to hide. Banks and Revenue Authorities around the world are being forced to share information with each other. This means that putting money into offshore structures, thinking that you are safe from the tax man, is no longer the case. It is always better to come clean and become compliant first before SARS audits you, whereby penalties and interest can be levied or even criminal sanctions.