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MaryJane

SARS Tax Season

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MaryJane

Just a reminder for those that still do them...

SARS tax season is upon us. SA tax season starts on Canada Day, 1 July 2015.

Important deadline dates to remember are:

30 September 2015 - for manual or postal submissions

27 November 2015 - for submission at a SARS branch (non-provisional taxpayers)

27 November 2015 - for eFilers (non-provisional taxpayers)

29 January 2016 - for eFilers (provisional taxpayers)

From SARS website: http://www.sars.gov.za/TaxTypes/PIT/Tax-Season/Pages/default.aspx

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Guest

Thanks for the heads-up MJ. This will hopefully be my last year. Although mine gets done for me in SA, still a mission collecting documents from Canada every year!

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Tracey22

also note: If you are a canadian citizen, earning income from SA, there will be withholding tax applied from 1 March 2016.

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MaryJane

Thanks for the heads-up MJ. This will hopefully be my last year. Although mine gets done for me in SA, still a mission collecting documents from Canada every year!

Wish I could say the same.... Methink (hopefully) I've got 2 more years to go.

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dallant

Wish I could say the same.... Methink (hopefully) I've got 2 more years to go.

If I May ask, why do you still have to do your return in SA?

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MaryJane

If I May ask, why do you still have to do your return in SA?

I have rental property.

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ryan01

We have no income from SA whatsoever. We submitted our last tax returns for 2014 and landed here in September 2014. I had finished work in May 2014 and my wife finished up in July 2014. Will we need to file for 2015 tax season too?

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M-N

Hi Ryan, you'll still need to do your return for the months you earned income during the 2015 assessment.

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MaryJane

Yes, M-N is correct. You had income for the 2015 tax year end. The 2015 tax year end runs from March 2014 - February 2015. You will still get an IRP5 to use for your submission.

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Sybi

I have rental property.

For example - If someone hasn't financially immigrated and has a rental property in SA. How would filing returns work in this instance. Wouldn't it be deemed as your sole property since you haven't yet financially immigrated thus it won't be classified as rental income

....

Sorry if I come across a bit blonde on this topic...I am clueless when it comes to this

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MaryJane

For example - If someone hasn't financially immigrated and has a rental property in SA. How would filing returns work in this instance. Wouldn't it be deemed as your sole property since you haven't yet financially immigrated thus it won't be classified as rental income

....

Sorry if I come across a bit blonde on this topic...I am clueless when it comes to this

Hi Sybi, you shouldn't be sorry. We know how sticky tax can be at times.

To try and clarify.... rental income is when you get rent and regardless whether you are in SA or not, or if it is your primary (sole) residence but you are renting out parts of it, there will be tax on the rental income.

The determination of primary residence only becomes important when you are selling your property, and could attract CGT (capital gains tax). If the property is your primary residence and the profit from the sale is less than R2m, then you would not be liable for CGT.

Notes from SARS - rental income tax - http://www.sars.gov.za/TaxTypes/PIT/Pages/Tax-on-rental-income.aspx

Notes from SARS - CGT on primary residence - http://www.sars.gov.za/FAQs/Pages/2094.aspx

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Sybi

Thanks MJ :)

Clears things up.

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Guest

Just to add to MJ's valuable information . I must still financially immigrate, so declare my rental income in South Africa and pay the tax on that income in Canada. Once you do the Rand to CAD conversion the tax is minimal. I've already declared my primary residence in South Africa when we sold it in 2010. My second rental property is an investment property we purchased many years ago. When this property is sold we'll pay the necessary capital gains tax on that.

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canuck nick

My last traces of SA income were declared in 2010 but I still had to eFile a NIL return every year on time or face a R250 penalty.

In 2012 I contacted SARS to make my tax file dormant, which they did.

So now I dont have to eFile anymore.

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Guest

Nick is right. Even if you have no income in SA, but you have not financially immigrated from SA, you still have to file a 0.00 tax return. Remember you are still registered with Sars and therefore still have to file a tax return. If you do not file before the cut off period, you will face late submission penalties.

Unless you close your tax file with Sars or make it dormant or financially immigrate, you have to submit you return.

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MaryJane

SARS 2016 tax season starts tomorrow on Canada Day, 1 July 2016. (It seems they love Canada Day as well ;) )

Important deadline dates to remember are:

25 November 2016 - for submission at a SARS branch (non-provisional taxpayers)

25 November 2016 - for eFilers (non-provisional taxpayers)

31 January 2017 - for eFilers (provisional taxpayers)

From SARS website: http://www.sars.gov.za/TaxTypes/PIT/Tax-Season/Pages/default.aspx

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GrantM

Thanks MJ. Got mine ready to file but just waiting on Nedbank to issue IT3Bs. This is the second year in a row that they have taken more than 4 months to issue them.

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CarelG

Filed mine last night....they always open the evening before, and I have experienced that the quicker you submit the quicker you get your rebate. Last year I submitted the night before and had the money in my account on the 2nd :) Hope this year will be the same....it is going into the POF pool :) 

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Hfb

So I'm about to file my return for the 2016 tax year and have a question re declaring Canadian income. (arrived in Canada August 2015, last SA income was earned July 2015)

I've heard from many if I have no intention of returning to SA, and now deem myself as a Canadian tax resident, I don't have to declare my Canadian income on my SA tax return. Does this mean answering 'NO' to the questions re having earned foreign income on my SA tax return, even though this would be a lie? It seems like SARS is pushing it to be declared regardless.

Advice would be greatly appreciated!

 

Edited by Hfb

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M-N
23 hours ago, Hfb said:

So I'm about to file my return for the 2016 tax year and have a question re declaring Canadian income. (arrived in Canada August 2015, last SA income was earned July 2015)

I've heard from many if I have no intention of returning to SA, and now deem myself as a Canadian tax resident, I don't have to declare my Canadian income on my SA tax return. Does this mean answering 'NO' to the questions re having earned foreign income on my SA tax return, even though this would be a lie? It seems like SARS is pushing it to be declared regardless.

Advice would be greatly appreciated!

 

That's correct.  Foreign income only pertains to income you earned from foreign entities while in SA.  You'll submit your SA income tax for the days you earned income during the tax season while in SA.   No need to declare your Canadian income  unless you earned it while IN SA.  

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Hfb

Thanks @M-N! I'll go ahead and submit then. I'm pretty sure I'll get audited because of the sizable refund from only working 5 months of the tax year and getting most of the employer deducted tax back. The joys of now doing tax in two countries!

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M-N
3 hours ago, Hfb said:

Thanks @M-N! I'll go ahead and submit then. I'm pretty sure I'll get audited because of the sizable refund from only working 5 months of the tax year and getting most of the employer deducted tax back. The joys of now doing tax in two countries!

Likely but chances are they may not. :) we went through that ourselves. wait till you have to do your Canadian tax. :)

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GrantM
4 hours ago, Hfb said:

Thanks @M-N! I'll go ahead and submit then. I'm pretty sure I'll get audited because of the sizable refund from only working 5 months of the tax year and getting most of the employer deducted tax back. The joys of now doing tax in two countries!

I only worked for 3 months in SA in the 2015/2016 year and had a large refund due to me (well large for me anyways). Had to wait for Nedbank to issue their IT3Bs which happened this morning. Submitted this morning, not selected for review/audit. You'll be fine. 

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Hfb

Luckily enough I wasn't selected for audit either. I've decided to leave my Canadian tax matters in the hands of an accountant; as I founded a professional corporation here and still have some personal tax to deal with on the side, it will just be easier this way.

 

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