Shampoo Posted December 15, 2014 Report Share Posted December 15, 2014 I officially emigrated via SARS and SARB and left SA on 22 June this year. My stocks and unit trusts were marked as "sold" and moved to a non res account. Now I must pay tax on the gains and have some questions for people here that perhaps went through this procedure.What date should I use as non resident in SA. The day before my flight or the date SARB has on my emigration record as they differ by 2 months. The value of my stocks differ by a large amount over these 2 dates.I have only held the shares for 2,5 years so they do not fall under the ITA 9C where stocks held for 3+ years will automatically be Capital and be taxed as CGT on disposal.Will they be "income" and taxed as income.If taxed as CGT, the tax will be effectively 10%. If not, the tax will be 40%. Quote Link to comment Share on other sites More sharing options...
Hugo2 Posted December 15, 2014 Report Share Posted December 15, 2014 Rookiethe 3 years rule is a safe harbour, you do not need the safe harbour as it is a deemed sale not an actual sale and your intentions remain capital of nature. CGT is max (ignore long tax arguments, I give a short cut answer, but available on request) 13.3% being 1/3 of 40% but if your effective tax rate is 30% then it is 1/3 of 30% = 10%. Neither of the dates you refer to is your tax emigration date. Tax emigration date from SA is the day before you became tax resident in Australia. This could have been the date you signed a rental contract for your Oz home. Formal emigration in itself DOES not trigger CGT, tax emigration date triggers CGT The CGT values to be used is the values the day before you tax emigrated ie two days before you became tax non-resident.If you had a PR and an Oz home became available to you on 1 June 2014 (assumption) then your tax emigration date is 31 May and the deemed CGT disposal took place at market value on close of business 30 May (the day before the tax emigration date). The departure date 22 June is the more reliable date ie then 21 June 2014 values should be used but if you only rented a house in Oz as of 1 July the tax emigration date is 30 June and the CGT date/value date is 29 JuneI trust this helpsHugo van Zylwww.taxmigration.com 1 Quote Link to comment Share on other sites More sharing options...
Shampoo Posted December 15, 2014 Author Report Share Posted December 15, 2014 Thank you for your inspiring answer Hugo and for taking time to answer us. As the top specialist in this field in SA,do I have your permission to quote you on ShareNet forum and the JSE shareforum?Another question. Is this a separate tax that I pay now or do I just add the CGT to my 2015 returns? Quote Link to comment Share on other sites More sharing options...
Hugo2 Posted January 25, 2015 Report Share Posted January 25, 2015 I provided more clarity on tax emigration or tax exit charge - see this link within this domainIt deals with property unit trusts, REIT and title deed owned propertiesWatch this space for budget speech 25 Feb 2015 - expect a major hike in CGT rates Quote Link to comment Share on other sites More sharing options...
Eto Posted January 26, 2015 Report Share Posted January 26, 2015 Morning all,I have an existing super account in Oz and would like to know if it is possible to move my pension money to my super account in Oz without being penalised by Zuma and his tax department?Many thanks.Eto Quote Link to comment Share on other sites More sharing options...
Shampoo Posted January 26, 2015 Author Report Share Posted January 26, 2015 The rules have been amended recently. If you have not "Officially" emigrated via SARS and SARB and considered a Temporary Non-Resident in SA, you may now remit your pensions and RA's to Australia. This does not apply to Income.Hugo will have to help with the tax but I see you are active physically with mountain biking so presume you are not at a pensionable age so might pay a penalty for early closure. Quote Link to comment Share on other sites More sharing options...
Shampoo Posted January 26, 2015 Author Report Share Posted January 26, 2015 http://www.10x.co.za/blog/emigration-and-your-retirement-fund/ Quote Link to comment Share on other sites More sharing options...
Shampoo Posted January 26, 2015 Author Report Share Posted January 26, 2015 The rules have been amended recently. If you have not "Officially" emigrated via SARS and SARB and considered a Temporary Non-Resident in SA, you may now remit your pensions and RA's to Australia. This does not apply to Income.Hugo will have to help with the tax but I see you are active physically with mountain biking so presume you are not at a pensionable age so might pay a penalty for early closure. This I read on an accounting firm's website and was dated 2014. Not sure if they are just looking for business so don't take my word. There are conflicting articles on this so rather get expert advice. Quote Link to comment Share on other sites More sharing options...
Eto Posted January 28, 2015 Report Share Posted January 28, 2015 Morning all and thanks for your input.Much appreciatedEto Quote Link to comment Share on other sites More sharing options...
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