Share Forum - Discuss JSE shares and join the Investor Challenge

CR has no authority to send Zuma or anyone to jail. He has achieved so much in 1 month however. He kick started a process that may take years to resolve.

ZAR opened up 11c lower than previous close so it might at some stage want to close it again. Sub 12 is inevitable though.

Oh my goodness. You guys are living in a Turd World country. Not Shithole at all. 

Thanks for the explanation. Looks easy to follow. Yes. Sigh. 

My stock picks have been dismal. Three of my 4 are negative but luckily my winning one is DIVTRAX and it is about 70% of my portfolio.

Portugal takes the exchange rate into consideration for CGT whereby the cost is converted to Euros on day of purchase and so far it is to my advantage. This is not the case for SA residents with foreign investments. You have to use the simplified calculation that effectively rules out currency movements.
 

Of the 12 Computer Services stocks 9 are suspended and only 3 survive but with low PE ratios and downtrends. No reason for this except EOH.

The JSE is a gambling casino nowadays with politic and corruption going on and no one can predict anything anymore. You never know what is going to happen tomorrow.

Going for companies that pay high dividends, CML comes to mind. They have very little capex and can afford to pay substantial dividends. They also cannot make new acquisitions as they are already too bloated so they have no need to skimp on dividends.

Only problem is that if we get downgraded to total crap then a very quick exit by foreign institutional investors will have to happen by there countries laws. I strongly doubt this will happen.

If you want a monthly income then look at Preference Shares or DIVTRAX  that tracks stocks that consistently increased their dividends. 

Companies that consistently increase dividends can only be good growing companies like ummmm....Steinhoff.
 

Learned one very expensive lesson with emigrating. Get a good chartered accountant that does cross border tax and emigration in SA and one in your new country. I have been through 5 accountants and a tax lawyer. The tax lawyer here in Portugal got me sorted.

I went cheap and hired independent tax accountants. The first one was a cross border chartered accountant registered with SAIT and SARS. He did my 2014 tax. We left in June 2014. He assured me that once I have officially emigrated via SARS and SARB then no Exit Tax or further CGT is payable. WRONG or perhaps he was referring to the Exit Tax for the rich like Mark Shuttleworth who had to pay 10% Exit Tax.

There is a difference between Exit Tax and Departure Tax. Departure Tax is CGT that you pay when you emigrate and all your investments are "Deemed as sold" on the day of emigration and bought at the same price the day after. This readjusts your base cost to a "clean slate" in your new country for tax purposes.

Your accountant will file your tax for the FULL year for the year of your departure and it will include the "deemed sale". You will pay your normal tax plus the CGT on the deemed sale up to the date of departure. The rest you will pay according to the DTA. 

Once this is done you can close your SA tax books via a procedure that I can explain in another post.

Preamble done.
So we arrived here in June 2014 and hired a cross border charted accountant in Lisbon who studied at WITS and worked for PwC SA. He assured me that if I apply for the Non Habitual Residency regime I will not pay tax for 10 years. Once again.....WRONG. CGT is excluded from this regime.

Not knowing that it is excluded I sold my winning stock CML and made well over R1m gain and was hit with a whopping tax bill. Tax on share gains is a fixed rate of 28% here and is a separate tax.

Tax in Portugal does not follow the 183 day rule but you are taxed from the date of intention to stay like a rental agreement even if it is signed on the last day of the tax year you will be taxed for the full year.   

As I am a freeloader and a cheapskate I researched and sent emails to every tax website I came across to get me out of this shite.

The only one to answer was a tax lawyer in Portugal. What he stated is very important. LOOK AT THE DTA.
The DTA between SA and PT clearly states that CGT from shares is only payable to the country where one is resident.
As you cannot be tax resident in two countries at the same time my deemed sale took place in SA and I was not yet resident in PT. So the CGT from the deemed sale will be taxed at a much lower 13% in SA compared to 28% here.

This will save me over R300k. So do your homework before you leave.