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Just to answer my own question about Shyft IB transfer: use IB's wire ABA number and the first CitiBank account number (minus your user number). Transfer takes about 5 days and costs $14.
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Shares / Re: Tax on foreign share dividends
« on: January 10, 2019, 02:55:48 pm »None of this is to be considered advice. Talk to a decent tax guy so you don't end up caught out like me last year! My next blog posts will have more details.
Thanks Patrick! You're just a fountain of financial info
Looking forward to your next blog post.
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Shares / Tax on foreign share dividends
« on: January 10, 2019, 09:42:04 am »
Hi All,
How are dividends on foreign shares taxed by SARS? I'm talking about completely foreign companies and ETFs, brokered through an offshore broker in USD, not dual listed shares. It's difficult to pin down the rules, because the web is full of old or inconsistent information.
One example I saw goes like this:
R100 000 foreign dividends received.
- 26/41 * R100 000
= R36 585 added to personal income tax taxed at income rate (typically 40 %)
Questions:
How are dividends on foreign shares taxed by SARS? I'm talking about completely foreign companies and ETFs, brokered through an offshore broker in USD, not dual listed shares. It's difficult to pin down the rules, because the web is full of old or inconsistent information.
One example I saw goes like this:
R100 000 foreign dividends received.
- 26/41 * R100 000
= R36 585 added to personal income tax taxed at income rate (typically 40 %)
Questions:
- Is there a dividend withholding tax (typically 15%-20%) levied in the foreign jurisdiction on the R100 000 before it hits my account? So do I pay double taxes?
- How do I convert USD to ZAR? Average over the year or at the date of declaration
- Are there any foreign tax credits I can use? The ITR12 SARS form seems to suggest so.
- How does SARS calculate foreign dividend exemptions? See attached shot of ITA34 section
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Shares / Do I need Interactive Brokers Market data subscription to buy shares?
« on: January 03, 2019, 03:46:22 pm »
Hi,
So I opened an IB account a while back. My account is not funded yet (I'm still evaluating the platform). When I try to preview buy a share (tried VWRD and NPN) I get a popup that says "You currently do not have trading permission for this instrument type. Update trading permissions from the Trade Configuration page in Account Management". I have stock trading permissions enabled for most regions.
So my question for you guys on IB: Do I need to buy market subscription data just to be able to trade? That would be a deal breaker for me, because a JSE subscription is $10 a month. Hopefully it's only because my account is not funded yet, or because IB is in the middle of merging Account Management with Client Portal.
So I opened an IB account a while back. My account is not funded yet (I'm still evaluating the platform). When I try to preview buy a share (tried VWRD and NPN) I get a popup that says "You currently do not have trading permission for this instrument type. Update trading permissions from the Trade Configuration page in Account Management". I have stock trading permissions enabled for most regions.
So my question for you guys on IB: Do I need to buy market subscription data just to be able to trade? That would be a deal breaker for me, because a JSE subscription is $10 a month. Hopefully it's only because my account is not funded yet, or because IB is in the middle of merging Account Management with Client Portal.
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Shares / Re: Offshore Structured Product
« on: October 31, 2018, 11:42:47 am »
Hi, I have a few questions:
- Who's the counter-party in this deal? IOW is the deal good unless Investec Bank itself goes bankrupt?
- What happens if I'm forced to sell before 5 years? Do I get pro-rata, capital back, or a reduced rate?
- Is that -40% guarantee on the un-geared euro-stoxx50? IOW NOT geared to both + and - side?
- How are the gains taxed? I assume CGT after the 5 year period?
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