Must You Pay Tax on Your Rental Income?

Must You Pay Tax on Your Rental Income?

Letting out property can give you an excellent “annuity” income, and if that concept appeals to you and a buy-to-let property comes your way at the right price put an offer in right now; before the current ‘buyer’s market’ runs its course. In your financial planning however remember the tax implications, because as a landlord you must add your rental income to your salary and other taxable income in your tax return every year. Not to do so is tax evasion, and that carries heavy financial penalties as well as the very real threat of criminal prosecution. Having to pay…
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Tax changes affecting Trusts: Interest-free or low-interest loans to trusts

Tax changes affecting Trusts: Interest-free or low-interest loans to trusts

The South African National Treasury (“Treasury”) is moving forwards with their promises to tighten up the income tax laws which are applicable to trusts. In July 2016, Treasury released the Draft Taxation Laws Amendment Bill (“Draft TLAB”) which introduced a new section 7C into the Income Tax Act, 1962 which applies directly to trusts which are used as investment vehicles. Trusts - the structure Trusts are often used as an investment vehicle to hold immovable property. There are a number of benefits to this, including, removing the property from your estate beyond the reach of creditors and reducing your estate’s…
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The Panama Papers, SARS and the (proposed) new SVDP

The Panama Papers, SARS and the (proposed) new SVDP

The Panama leaks, last year’s HSBC leaks, and OECD’s “Automatic Exchange of Information initiative” all suggest that South African residents with accounts and investments in foreign tax jurisdictions should ensure that they are fully compliant with all their local and international tax and exchange control obligations. In any doubt, take advice on the proposed new Special Voluntary Disclosure Programme (SVDP) – remember that if you consult a lawyer you will benefit from attorney-client privilege. According to the media statement, the purpose of the SVDP is to give non-compliant taxpayers an opportunity to voluntarily disclose offshore assets and income. The SVDP was…
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