Author Topic: Tax  (Read 189618 times)

Bundu

  • Full Member
  • ***
  • Posts: 179
  • Karma: +3/-0
    • View Profile
Re: Tax
« Reply #210 on: February 10, 2014, 01:35:24 pm »

And another question - Is there any benefit what so ever if you sell shares after retirement, after turning 60? This is your "pension" or part of your pension.
Nope.
Orca, that 33.3 % you mention is it still the same percentage if you sell all your shares after turning 60 (retirement)?
33.3% is the cgt rate applied to your gains. Your effective rate depends on your marginal tax rate eg. @ 40% marginal tax rate, you would effectively pay 13.3%. At a lower marginal rate you would pay less, eg. 9.99% @ 30% marginal tax rate.


or put differently, a third of your CGT gains are fully taxed

(CGT Gain - R30 000)/3 fully taxed
« Last Edit: Tomorrow at 06:13:55 PM by Bundu »

Delusionsofgrandeur

  • Jr. Member
  • **
  • Posts: 79
  • Karma: +1/-0
    • View Profile
Re: What is the use?
« Reply #211 on: February 26, 2014, 06:54:06 am »
In my case, I had 2 trading businesses. One was a coffee shop and the other was stock trading as I had not held the stocks for 3 years yet.
So this means that I had 2 incomes and the profits from both must be combined.
A loss from one can be deducted from the gain of the other.

But what if I am only stock trading and have a job,can the loss from one trade be deducted from the gain tax free from another trade before tax is calculated?

Bundu

  • Full Member
  • ***
  • Posts: 179
  • Karma: +3/-0
    • View Profile
Re: Tax
« Reply #212 on: February 26, 2014, 10:41:43 am »
yes
« Last Edit: Tomorrow at 06:13:55 PM by Bundu »

Moonraker

  • Hero Member
  • *****
  • Posts: 1095
  • Karma: +31/-0
    • View Profile
Re: Tax
« Reply #213 on: February 26, 2014, 06:42:43 pm »
Buget tax pocket guide attached.

Delusionsofgrandeur

  • Jr. Member
  • **
  • Posts: 79
  • Karma: +1/-0
    • View Profile
Re: What is the use?
« Reply #214 on: March 25, 2014, 01:50:34 pm »

[/quote]

But what if I am only stock trading and have a job,can the loss from one trade be deducted from the gain tax free from another trade before tax is calculated?
[/quote]

I have an add on segment to the previous question I asked.Can the loss from one trade be deducted from the gain from another trade before tax is calculated,even if the 2 trades are in 2 different  tax year's?

jaDEB

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4534
  • Karma: +30/-3
    • View Profile
Re: What is the use?
« Reply #215 on: March 25, 2014, 02:35:40 pm »


But what if I am only stock trading and have a job,can the loss from one trade be deducted from the gain tax free from another trade before tax is calculated?
[/quote] - Yes you take your overall Profit or loss.

I have an add on segment to the previous question I asked.Can the loss from one trade be deducted from the gain from another trade before tax is calculated,even if the 2 trades are in 2 different  tax year's?
[/quote] - No  - unless some1 else corrects me, you cannot do different  tax year's

Read on SARS website - CGT - does not take long.
jaDEB

If it scares you, it's a sign you need to do it

Alsie

  • I've just arrived
  • *
  • Posts: 28
  • Karma: +4/-0
  • Don't answer a question you have not been asked
    • View Profile
Re: Tax
« Reply #216 on: March 27, 2014, 08:38:38 pm »
Go and study the guide for share owners issued by SARS (latest update 17 Feb 2014).
You can find it at:
http://www.sars.gov.za/AllDocs/OpsDocs/Guides/LAPD-IT-G11%20-%20Tax%20Guide%20for%20Share%20Owners%20-%20External%20Guide.pdf

Orca

  • Hero Member
  • *****
  • Posts: 2274
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #217 on: March 28, 2014, 11:59:24 am »
If you are stock trading (not yet held for 3 years) and have a job, then you have 2 incomes. Your trading must be calculated separately by you to Balance Sheet. No matter how many trades you made, you must get a total gain or loss for efiling as a single entry.
The loss will be automatically deducted from your other job income. Or.
The gain will be added to your other income.
If your trading loss is more than your income, then the resultant loss will be carried over to the next year.
I started here with nothing and still have most of it left.

Delusionsofgrandeur

  • Jr. Member
  • **
  • Posts: 79
  • Karma: +1/-0
    • View Profile
Re: Tax
« Reply #218 on: April 07, 2014, 09:23:41 am »
Allrighty, S.A and the country I work in have a double taxation agreement, which means that if I'm taxed here, then I won't be taxed in S.A(as I understand it).

Does this mean that the income from my job is excluded from being processed into e-filing?

Also, as I understand it,Fifo and weighted average work together,and are not mutually exclusive.
Are there any other benefits to the other method?

The way I understand the deductable tax from gains is as follows
CGT tax on profits from equities that obey the 3 year rule are taxed at 33,3% of 40%.

This works out to 13.3% for CGT,if the 3 year rule is observed.

This all depends if you are in the 40% bracket, which applies to taxable income in excess of R638 600 P.A for 2014.

My taxable income is below this, even if I had to pay tax in S.A.Do I still fall in the same tax bracket of 40%?





Bundu

  • Full Member
  • ***
  • Posts: 179
  • Karma: +3/-0
    • View Profile
Re: Tax
« Reply #219 on: April 07, 2014, 11:17:29 am »
No, your specific marginal tax rate at your own earnings is used AFAIK
« Last Edit: Tomorrow at 06:13:55 PM by Bundu »

Orca

  • Hero Member
  • *****
  • Posts: 2274
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #220 on: April 07, 2014, 12:37:35 pm »
SA will tax only earnings sourced in SA but you must declare your Ossie earnings. It gets quite complicated as I don't know your circumstances.
Did you inform SARS that you are emigrating and pay exit tax on your SA assets?
Where do you regard your home to be?
Do you spend time in SA every year?
What address has SARS for you?
If you are contacting overseas but have a home here or a wife that rents in SA, you can still be regarded as a SA resident for tax purposes.
Very important tip. If you are non resident, let your Broker know as your dividends might be tax free.
Not updating your address with SARS is a criminal offense.


I started here with nothing and still have most of it left.

Delusionsofgrandeur

  • Jr. Member
  • **
  • Posts: 79
  • Karma: +1/-0
    • View Profile
Re: Tax
« Reply #221 on: April 09, 2014, 09:03:34 am »
I see.
I did not emigrate but work temporarily overseas on a contractual basis.
I consider my home to be in South Africa.
I have not been home in a few years tho.
I believe SARS has my S.A address,so for tax purposes I am a S.A resident I think.


Orca

  • Hero Member
  • *****
  • Posts: 2274
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #222 on: April 09, 2014, 03:06:07 pm »
I'm afraid that you will not satisfy the physical presence test as you have not been present in SA for at least 91 days in a tax year.
You are a non resident and will only pay tax on your SA earnings. CGT is only payable on the disposal of immovable property. Selling of property stocks are taxable but not other shares.
You must get your a into g and change your address as SARS is taxing you as a resident and you will pay more than you are required to.
I started here with nothing and still have most of it left.

Delusionsofgrandeur

  • Jr. Member
  • **
  • Posts: 79
  • Karma: +1/-0
    • View Profile
Re: Tax
« Reply #223 on: April 10, 2014, 08:42:53 am »
Yeah,I was taxed on my share earnings.I haven't filed taxes for any share profits from sales.

My broker has me as a resident and tells me that there is no difference in the tax implications between being a resident and non-resident.


I think the tax treaty(double taxation avoidance) overrides the physical presence test.

So do S.A earnings tax not refer to me since I earned the capital in another country,even though investing in S.A?

Are you saying I shouldn't pay tax,trading,CGT,or otherwise as long as my investments/trading is not related to property.
« Last Edit: April 10, 2014, 09:16:20 am by Delusionsofgrandeur »

Orca

  • Hero Member
  • *****
  • Posts: 2274
  • Karma: +54/-3
    • View Profile
Re: Tax
« Reply #224 on: April 10, 2014, 11:33:38 am »
There is a big diffs in tax consequences between residents and non residents. The double tax treaty will not apply to you as you are a SA resident in SARS eyes. You must get this sorted out and become non resident in SA.
That way SARS has no claim on your foreign earnings and you will not pay CGT on non property shares you sell in SA.
You will only pay tax if the shares have not yet reached the 3 year term as you will be trading in SA. All interest is tax free.
Any earnings you make from your SA shares must be declared in Australia and you will get credit for tax paid here according to the DDT. This is to prevent tax avoidance and to protect you from paying tax twice.
If your tax rate in Australia is 35% and 30% in SA, then your tax on SA share sales will be 5% in Australia.
I started here with nothing and still have most of it left.