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Author Topic: What would you do if you were exempt from tax?  (Read 19682 times)

Orca

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What would you do if you were exempt from tax?
« on: May 27, 2015, 06:37:18 pm »
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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erwintwr

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Re: What would you do if you were exempt from tax?
« Reply #1 on: May 27, 2015, 08:52:16 pm »
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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Orca

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Re: What would you do if you were exempt from tax?
« Reply #2 on: May 27, 2015, 10:10:20 pm »
Quote from: erwintwr on May 27, 2015, 08:52:16 pm
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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Patrick

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Re: What would you do if you were exempt from tax?
« Reply #3 on: May 28, 2015, 07:46:06 am »
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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Orca

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Re: What would you do if you were exempt from tax?
« Reply #4 on: May 28, 2015, 10:44:05 am »
Quote from: Patrick on May 28, 2015, 07:46:06 am
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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gcr

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Re: What would you do if you were exempt from tax?
« Reply #5 on: May 28, 2015, 10:56:27 am »
Quote from: Orca on May 28, 2015, 10:44:05 am
Quote from: Patrick on May 28, 2015, 07:46:06 am
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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erwintwr

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Re: What would you do if you were exempt from tax?
« Reply #6 on: May 28, 2015, 04:36:17 pm »
Quote from: Orca on May 27, 2015, 10:10:20 pm
Quote from: erwintwr on May 27, 2015, 08:52:16 pm
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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Orca

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Re: What would you do if you were exempt from tax?
« Reply #7 on: May 28, 2015, 10:21:04 pm »
Problem is that I am familiar with SA markets and know nothing about EU stocks.
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jonb

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Re: What would you do if you were exempt from tax?
« Reply #8 on: June 11, 2015, 05:03:00 pm »
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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Orca

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Re: What would you do if you were exempt from tax?
« Reply #9 on: June 11, 2015, 05:40:46 pm »
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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gcr

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Re: What would you do if you were exempt from tax?
« Reply #10 on: June 11, 2015, 06:49:04 pm »
Quote from: Orca on June 11, 2015, 05:40:46 pm
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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Orca

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Re: What would you do if you were exempt from tax?
« Reply #11 on: June 11, 2015, 08:29:10 pm »
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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jonb

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Re: What would you do if you were exempt from tax?
« Reply #12 on: June 12, 2015, 11:23:46 am »
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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Patrick

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Re: What would you do if you were exempt from tax?
« Reply #13 on: June 12, 2015, 12:50:52 pm »
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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jonb

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Re: What would you do if you were exempt from tax?
« Reply #14 on: June 12, 2015, 01:54:18 pm »
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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