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Tax submission and formal immigration


fredk

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Hi all

 

Will try to make my questions short and simple:

 

1. I am still a tax resident in SA, having moved to Aus only a couple of months ago. I know I have to declare my Aus income and taxes, but where on eFiling does this happen? Should I just create an additional IRP5? Would SARS know my Aus taxes was not paid to them, but was paid to the ATO?

 

2. I havent updated my place of residence with my bank (Standard Bank) or with SARS yet. Is this simple to do?

 

3. I dont have anything (cash, assets, RA’s) left in SA. I want to deregister from SARS going forward. Do I need to do formal financial emigration or can I deregister from SARS without that?

 

Thanks

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7 minutes ago, fredk said:

 

 

1. I am still a tax resident in SA, having moved to Aus only a couple of months ago.

Reply: not so easy! You tax non-resident in SA as of the day you become ATO tax resident paying tax on ww income. If you on PR its the day you arrived in Oz. On work permit you may indeed be tax resident. Note below you said no SA situs assets ao I ignore treaty tie breakers

 

I know I have to declare my Aus income and taxes, but where on eFiling does this happen?

Reply: not if you tax non resident but sars do ask what SA sourced income now taxed in Oz

7 minutes ago, fredk said:

Should I just create an additional IRP5?

Reply: no

 

Would SARS know my Aus taxes was not paid to them, but was paid to the ATO?

reply: no you need to claim and submit proof thereof plus add TRC (tax residency certificate) if already obtainable at tax filing date

 

2. I havent updated my place of residence with my bank (Standard Bank) or with SARS yet. Is this simple to do?

reply: penalty for not doing varies between R5m and R10m. Do at banks and SARS and if you tax resident Oz ask them to update their CRS info ATO no. CRS - common reporting standard self declaration on tax status

 

3. I dont have anything (cash, assets, RA’s) left in SA.

Reply: but you able to issue IRP5 yourself ie you still operate a business in SA?

 

I want to deregister from SARS going forward.

Reply: ensure CRS is updated at banks and all other financial institutions WORLWIDE before you attempt 

 

Do I need to do formal financial emigration or can I deregister from SARS without that?

Reply: may help but big issue is sars will not do before TRC is on file and last assessment issued. If you left post 1 Marxh 2018 you looking at Nov 2019 as earliest full deregistration

Thanks

 

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Thanks Hugo

Appreciate the guidance

If i can summarise my interpretation and clarify some points:

1. I am on PR and arrived end Nov 17

I’ve been tax resident in Aus since arriving, and have certificate from ATO stating this

 

Given for most of the tax year I was still based in SA, I thought I should declare my WW income for the entire year in SA which would include Dec17- Feb18. Please correct me if this is not correct.

 

I don’t have any business in SA; I was trying to understand where I would declare my worldwide income when suggesting the IRP5. 

 

Thanks for the note on CRS - I will contact the bank.

 

Regards

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Hi Fredk,

 

On my last SA tax return, I submitted my IRP5 for the period I worked in South African and put a period of employment from when I left the country. I was audited by SARS and basically submitetd my visa and travel plans to show I was no longer in the country. This all seemed to work fine.

 

My understanding is you do not need to disclose any income you have earned outside of South Africa once you have left the country (ie no longer tax resident). I am not a tax adviser though, so would be happy to be corrected.

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On 7/18/2018 at 1:53 PM, fredk said:

Thanks Hugo

Appreciate the guidance

If i can summarise my interpretation and clarify some points:

1. I am on PR and arrived end Nov 17

I’ve been tax resident in Aus since arriving, and have certificate from ATO stating this

 

Given for most of the tax year I was still based in SA, I thought I should declare my WW income for the entire year in SA which would include Dec17- Feb18. Please correct me if this is not correct.

THIS IS NOT CORRECT - your declare ww until 16 Nov or 30 Nov and then thereafter SA sourced income ONLY

 

I don’t have any business in SA; I was trying to understand where I would declare my worldwide income when suggesting the IRP5. 

WHEN YOU OPEN the IT12 they ask is there any exempt income and you answer yes then there is a block on page 6 or 7 asking you for the exempt income taxed in ATO only

 

Thanks for the note on CRS - I will contact the bank.

 

Regards

 

 

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On 7/19/2018 at 1:29 AM, Duggen said:

Hi Fredk,

 

On my last SA tax return, I submitted my IRP5 for the period I worked in South African and put a period of employment from when I left the country. I was audited by SARS and basically submitetd my visa and travel plans to show I was no longer in the country. This all seemed to work fine.

 

My understanding is you do not need to disclose any income you have earned outside of South Africa once you have left the country (ie no longer tax resident). I am not a tax adviser though, so would be happy to be corrected.

IN YEARS after you left SA ie when you were tax non-resident for the full year, you only show SA sourced income and SA situs assets but in the year you depart you need to split and show SARS how you reached your position. Reason is their inability to allow you two returns - in the year of departure you should technically file one return for period as resident and another for the period as non-resident. Sadly eFile can't cope with this. 

5

 

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