The JSE and finance forum for South Africa
General Category => Shares => Topic started by: Orca on May 27, 2015, 06:37:18 pm
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I have just received a letter from the Portuguese IRS that officially exempts me from tax. Now I have been racking my brains trying to think how I can take full advantage of it but can't think of anything really.
What would you do?
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so you managed to get a TFSA before us. sigh
but yes i guess most of the TFSA ideas can apply. invest into things that usually had high tax margins eg property?
but mostly - i would just be jolly - not paying a single cent to the ANC craziness >:D
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so you managed to get a TFSA before us. sigh
but yes i guess most of the TFSA ideas can apply. invest into things that usually had high tax margins eg property?
but mostly - i would just be jolly - not paying a single cent to the ANC craziness >:D
No It is not TFSA. All my income is exempt. I can trade or invest or whatever and pay no tax. Read my post again.
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To maximize the benefit, I'd do the unthinkable and get as high a paying job as I could for a while!
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To maximize the benefit, I'd do the unthinkable and get as high a paying job as I could for a while!
If you work in Portugal, you pay a fixed 20% tax. I was thinking of buying high dividend stocks just before LDT and selling when the price readjusts and then move on to the next one.
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To maximize the benefit, I'd do the unthinkable and get as high a paying job as I could for a while!
If you work in Portugal, you pay a fixed 20% tax. I was thinking of buying high dividend stocks just before LDT and selling when the price readjusts and then move on to the next one.
Would it not pay you to move a portion of your SA assets to Portugal and trade on the London and European stock exchanges - especially if you are not going to have your profits treated as income and then subject to the 20% tax rate?
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so you managed to get a TFSA before us. sigh
but yes i guess most of the TFSA ideas can apply. invest into things that usually had high tax margins eg property?
but mostly - i would just be jolly - not paying a single cent to the ANC craziness >:D
No It is not TFSA. All my income is exempt. I can trade or invest or whatever and pay no tax. Read my post again.
i should have added " " 's around the TFSA part :P -
it's definitely a situation very rarely achieved. Go and win the lotto - much better without any tax :D
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Problem is that I am familiar with SA markets and know nothing about EU stocks.
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I find myself in the exact same position. Except in The Netherlands. I have 90% of my investments in SA as like you I am more familiar with this market and have had more success here. I took 10% off at the beginning of this year to experiment here in Europe on a Blackrock euro index tracker also a few other singular funds + the S&P
All of these have been really weak. and get the feeling I am missing out by not really understand the massive world of investment over here.
Any suggestions... would continue with SA but currency weakness plus a number of other issues make me want to move out
Appreciate any feedback!
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Too many stocks to start afresh here so I will stay in the JSE. My investments are my only income so don't want to make bad choices.
The FX does not bother me as stock performance is the major driving force.
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Too many stocks to start afresh here so I will stay in the JSE. My investments are my only income so don't want to make bad choices.
The FX does not bother me as stock performance is the major driving force.
Ol' Orca - I thought you would have wanted to put your toe in the water with some of the shares available on the international markets. I am presently looking through the LSE to seek out reasonable shares - presently concentrating on food producers and food and drug retailers and general retailers, also interested in Danone and Nestle. Want to take funds offshore end of this year early next year - currently sussing out brokers and their charges/levies
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Actually I am looking at the tax implications as well. At the moment, my income is "capital" in nature (CGT) so I am exempt from tax according to the Non Habitual Residency tax regime in Portugal.
Should I sell my stocks in SA and buy in the UK, I would have to wait 12 months (36 in SA) before they will be considered "capital" in nature.
Any gains realised before the 12 month period will be income in nature and will be taxed at a flat rate of 20%.
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QUICK ONE AGAIN ON THIS ... WHAT IS THE EASIEST WAY TO GET FUNDS OUT OF SA? JUST TRIED AND ITS NO EASY FEAT!!
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How much are you talking about, and do you have an account overseas?
I have a paypal account linked to my US bank account, and I send it money from another paypay account linked to my South African bank account. It works and the fees are low.
If you're just looking at protecting your money against rand devaluation you have many more options. You can buy the DBX trackers, invest in offshore equity funds, and I'm sure the others here will have many more options.
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Thanks Patrick!
looking at shifting about 300K ?
Just asked FNB who I have an account with and this ended in a pile of paperwork! there has to be an easier way!
how does the paypal system work, I have an account here but can i set one up in SA?
I want to use this to create a portfolio on this side :TU: :question:
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Need more info jon. Do you have a Blocked ZAR Account at FNB or did you just duck from SA without emigrating officially?
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You are permitted to take out R 10 million as a SA resident (that's the physical export of the funds into a foreign country/currency), but you have to get a tax clearance certificate which any local bank will insist on taking a copy of. Also you do not have to repatriate earnings dividends/profits to RSA, which is distinctly different if you go the route of getting your broker to handle the investment - this is always denominated in Rand and it is the broker who places the orders. There are other implications which I am still researching as if you do it through a local broker there are some tax conditions you need to meet. Also if you are a SA resident living overseas make sure you keep your tax number current otherwise you could end up being classified as a non resident and you will have to find a friendly country to take you in - also if you have a passport watch its expiry date as there seems to be a growing insistence that you call on the appropriate department in person to renew your passport and they seem to insist on proof of residency or at very least an affidavit. The simplest part seems to be opening a broker account in London (as I am currently looking into) but one needs to be aware of their tax regime and also what restriction are placed on (me) in terms of how long I need to hold shares for and which point I would have to pay CGT (still checking this out) and where the tax thresholds are and whether I have to apply for a tax number in London
So I would say that there is substantive homework to be done before just rushing off into holding funds in a foreign currency and trading on another bourse
Just my view - use them, lose them
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As jon will be transferring R300K, he does not need a tax clearance nor does he need to have an active tax account.
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As jon will be transferring R300K, he does not need a tax clearance nor does he need to have an active tax account.
If Jon lives in SA and is earning some form of income then he would have to get a tax clearance, and chances are he would have a tax number unless income is below the threshold amount of whatever the limit is these days
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hey Orca , yeah ... wasn't aware I had to do anything with my bank to let them know i was living abroad! My Tax details are kept up to date with a Nill out of country placed every year.
I asked FNB to do it and they gave me a ton of forms, needed a tax clearance which I am getting now from my accounts person
Having said that, Here in the Netherlands as I am on a 30% tax ruling ( expat type tax plan ) i will not pay any tax on investments here. Comparing options here VS coronation where I am at currently in SA .... Coronation fared better over the past 5 years in balanced plus + industrial . Thing is ,worried about rand devaluation! and if i am here why not venture out into the world economy rather than playing in the 1%??? or is this possibly safer than world markets
local funds have taken a knock recently but the brains behind them are world class and track record is awesome!
My Dilemma = how to best get funds out of SA NO:1 and then how much should I take out of SA as I am now a Netherlands resident
some people advise .. everything while my heart says leave some in SA
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As jon will be transferring R300K, he does not need a tax clearance nor does he need to have an active tax account.
really? it seems with FNB I would need the tax clearance and a ton of forms
Are you sure about this ? If so will put some pressure on them!
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As jon will be transferring R300K, he does not need a tax clearance nor does he need to have an active tax account.
If Jon lives in SA and is earning some form of income then he would have to get a tax clearance, and chances are he would have a tax number unless income is below the threshold amount of whatever the limit is these days
Hi GCR
I do not live in SA, currently in Netherlands as a citizen here and dual citizenship with UK and SA
My tax number is kept up to date with account back in SA who supplies a out of country form every tax year so all good hear
What i was originally asking was:
Being over here , does it make sense continuing with Funds in SA or rather pulling out 100% and testing the waters in investment over here which from what I can gather is a much larger footprint!
I just am more versed in SA business and to be honest the companies like coronation etc.. are way more geared towards individual investors than business over here
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From Cashkows:
Discretionary Allowance (DA) – R1million per adult, per annum – no tax clearance required
South African non-residents may use the allowance only in the
calendar year when leaving the country – 18+ years of age. Green barcoded South African ID and
subject to an active SARS tax record.
SARB does not state that at all on their website. It states this:
(ii) In addition, up to R1 million, within the single discretionary allowance facility, can be
transferred abroad, without the requirement to obtain a Tax Clearance Certificate.
There is no need to Formally Emigrate unless you want to remit a RA pension. This is very expensive and time consuming.
I am now sorry that I use FNB as Cashkows are much cheaper as is their exchange rate. Exchange4free are even cheaper.
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See "exchange4free" as from April 1, 2015 SA residents may invest R10 million per tax paying adult each year as part of their foreign investment allowance