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How does it work with the difference in financial years and migration date.


Jacques Voogt

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I'm pretty confused about this.

Here is a timeline.

2013-03 - Earned ZAR and paid tax to SARS (Also had rental income and expenses)

2013-04 - Earned ZAR and paid tax to SARS (Also had rental income and expenses)

2013-05 - Earned ZAR and paid tax to SARS (Also had rental income and expenses)

2013-06 - Earned ZAR and paid tax to SARS (Also had rental income and expenses)
2013-07 - Earned ZAR and paid tax to SARS (Also had rental income and expenses)
2013-08 - Earned ZAR and paid tax to SARS (Also had rental income and expenses, Also received additional rental income for our 2nd house)
2013-09 - Migrated and started to earn AUD and paid tax to ATO (Rental income and expenses, ongoing in RSA)
2013-10 - Earned AUD and paid tax to ATO (Rental income and expenses, ongoing in RSA)
2013-11 - Earned AUD and paid tax to ATO (Rental income and expenses, ongoing in RSA)
2013-12 - Earned AUD and paid tax to ATO (Rental income and expenses, ongoing in RSA)
2014-01 - Earned AUD and paid tax to ATO (Rental income and expenses, ongoing in RSA)
2014-02 - Earned AUD and paid tax to ATO (Rental income and expenses, ongoing in RSA) RSA End Of Financial Year
2014-03 - Earned AUD and paid tax to ATO (Rental income and expenses, ongoing in RSA)
2014-04 - Earned AUD and paid tax to ATO (Rental income and expenses, ongoing in RSA)
2014-05 - Earned AUD and paid tax to ATO (Rental income and expenses, ongoing in RSA)
2014-06 - Earned AUD and paid tax to ATO (Rental income and expenses, ongoing in RSA) AU End Of Financial Year

Do I declare all income in ZAR up to date of migration and then all income in AU from date of migration?

So I'd be living, earning and paying Tax in ZAR for only a few months, and living, earning and paying Tax in Aus for almost a full year.

This would seem logical to me.

Or

Do I need to declare everything from July in Aus (including ZAR salary, etc.) and try to claim back anything I paid to SARS while I still lived there for March to June?

This would not make sense to me, but with a lack of concrete info. I have no idea....

Thanks for your replies.

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Jacques

Paying AU tax on SA income depends on a few issues one being PR date.

Before that you do not need to declare SA rental income to ATO, and post PR date the treaty may throw you back into SA system, ie SA needs to know about your SA income

Allow me to also explain that declare and pay tax on, need to be carefully considered. If you are tax resident in AU and you have any SA income, you SA income statement asks questions on your income declared to tax treaty home country. But in declaring SARS acquires no right to tax. It is for statistical purposes only

Rental income: As long as you have SA rental income you will remain a SA taxpayer. You will have to declare to SARS and perhaps to ATO. If any SA tax were paid, ATO will allow you a tax credit

For anyone that owns a deeds office registered asset (immovable property) it is best to retain your SA tax number

I hope this helps

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Hi Hugo

Thanks for the reply.

PR since 10th September 2013.

Logically it would make sense for me to have paid taxes in ZAR for anything earned in ZAR up to date of leaving even though I have not formally migrated financially. In other words, I still have assets and accounts in ZAR.

So too would it make sense to me that upon arrival here, I pay taxes to ATO since I now live here and declare as such to ATO including foreign income but then I would not show that income to SARS anymore or is this where the "income declared to tax treaty home country" bit comes in?

So if I understand correctly: I should...

Declare all income since date of arrival to ATO.

Declare ZAR income before arrival to SARS as normal and indicate to SARS the income declared to tax treaty home country for AU income since arrival.

Or can I simply fill in both, and only indicate the income in each country to their tax office. I doubt they would make it that simple.

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On e-filing on SARS return there is a question relating to foreign income earned which is exempt in terms of a double tax treaty (something like that) and they ask an amount - it does not include this amount as taxable income in South Africa. If you are a tax resident of both South Africa and Australia you need to declare everything to both (since you became an Australian tax resident)

So your salary earned in Australia will not be taxed in South Africa (exempt) but your rental income in South Africa will be taxed in both countries but Australia will give credit for taxes on rental income paid in South Africa.

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Thanks guys. I'll give it a go.

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