According to expert immigration and financial services group 1st Contact, many South African property owners living and working abroad are unaware of their obligation to register for income tax, making them eligible for the submission of an annual tax return.The failure of these individuals to submit their 2008 tax returns will be regarded as a criminal offense by the South African Revenue Service, which will result in penalties being charged, where the severity of these penalties is on the increase. 1st Contact upholds the importance of tax submissions from a long-term perspective in order for individuals to be able to access retirement and free retrenchment benefits or potential property purchases further down the line.
According to 1st Contact, this process is a simple and easy one, where more info can be accessed on www.1stcontact.com. The 2008 tax deadline is set for 23 January 2009, where 1st Contact has provided the following advisory tips:
- In order to transfer property in South Africa, it is essential to have a tax clearance certificate.
- If you own property in South Africa which is generating a passive income stream in the form of interest, dividend or rental income, this will need to be declared to the South African Revenue Service. Individuals whose passive income is in excess of R 20 000 a year will become provisional tax payers.
- If your long-term intention is to relocate back to South Africa, you will remain a tax resident in South Africa. As a tax resident, you are obliged to declare your world wide income. It is interesting to note that you will need to declare the income that you are earning abroad, where these sums will not be subject to taxation in South Africa.
In order to safe guard from incurring unnecessary and burdensome penalties from the South African Revenue Services, 1st Contact will be able to assist you to ensure the efficient and smooth running submission of your annual tax return by:
- Submitting an income and expense declaration to SARS on your behalf and ensuring that the correct information is reflected
- Monitoring your completed assessment, to ensure that it is accurate, where should any errors be reflected, we will object to the South African Revenue Service on your behalf
For more information, please contact 1st Contact SA Tax on
firstname.lastname@example.org or call (From the UK) 0844 880 1814 or (From SA) 021 657 2190