Foreign soccer players to pay SA tax

Mila

Mila

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http://www.fin24.com/PersonalFinance/Money-Clinic/Foreign-soccer-players-to-pay-SA-tax-20100517
Interesting.
Johannesburg - One local instititution set to win from the country’s hosting of the 2010 Fifa World Cup is the South African Revenue Service (Sars).

While Sars has granted certain tax concessions on the supply of goods and services relevant to hosting the tournament, foreign soccer players will not be exempt from tax, and measures have been put in place to ensure their taxes are collected.

As a norm, South Africa taxes non-residents on a source basis – meaning that receipts from sources within the borders of the country are subject to tax. Applying the source basis, earnings received by foreign sportspersons from activities they perform in SA are thus subject to tax.

Sars has recognised the challenge of collecting the tax on these earnings, given the short period players will be present in SA, as foreign rugby and cricket players have escaped paying any form of tax on earnings for their performances during previously staged rugby and cricket world cups.

But practical tax collecting problems have now been rectified and Di Seccombe of audit, tax and advisory firm Mazars said Sars will be collecting in 2010.

Tax legislation now places the obligation on the South African resident paying foreign sportsmen undertaking a so-called specified activity to withhold tax at a rate of 15%. "A 'specified activity' is defined in the Income Tax Act as any personal activity undertaken by the foreign sportsperson in South Africa, whether alone or with other people," said Seccombe.

"Any South African resident failing to withhold the correct amount of tax and pay it over to Sars within 30 days will find themselves personally liable for the taxes owing. Theoretically, the SA resident will then need to recover the taxes paid from the foreign sportsperson."
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This will get amusing.. and very quickly..

My guess is SARS will get sweet FA out of the foreign players since they're being paid by their respective countries.
 
ToxicBunny said:
This will get amusing.. and very quickly..

My guess is SARS will get sweet FA out of the foreign players since they're being paid by their respective countries.
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yes exactly...why the hell would we pay them anything? lol
unless i'm missing something?
 
Most western countries tax people on a residence basis. If an SA sportsperson is not getting taxed in the country they are playing in because they aren't classed as "residents" and also not paying SA tax becuase the income isnt sourced in SA, its only fair they pay tax somewhere. SA has double tax agreements with most countries, so they will only pay tax once, which is fair.
 
I normally don't approve of drive-by taxation, but then again... It's costing SA eight times more to host the FIFA orgy than we will recoup.
 
Nothxkbi said:
Would be the last thing on your mind as you go bouncing around in Afghanistan for a few years.
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Beats joining SANDF ;)
Best of all is, all SA people can go and apply and if you qualify you are in. Well for now still that is.
 
Pitbull said:
Beats joining SANDF ;)
Best of all is, all SA people can go and apply and if you qualify you are in. Well for now still that is.
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The last I checked there's a lot of jobs open in chef training. The main hurdle is the the 3 day selection trials at Pirbright. The two biggest trials are the fitness/strength tests (intensive 2 hour gymnasium session, and a 3 mile run in 8 mins the following day) and the thorough medical examination(there are actually two, first one is from a GP, second one is at the selection centre). Crack those two and you get to sign up on the dotted line for basic.

The gymnasium was torture. First time I'd ever seen people throw up and collapse from exhaustion! :o
 
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Nothxkbi said:
The last I checked there's a lot of jobs open in chef training. First You just gotta pass the 3 day selection trials at Pirbright and you're in. The two biggest trials are the fitness/strenght tests (intensive 2 hour gymnasium session, and a 3 mile run in 8 mins the following day) and the thorough medical examination(there are actually two, first one is from a GP just to get to go). Crack those two and you're good to go.

The gymnasium was torture. First time I'd seen guys actually collapse :o
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I'm contemplating the same thing :)

Still have 2 years to decide :D
 
Pitbull said:
I'm contemplating the same thing :)

Still have 2 years to decide :D
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You won't regret it. Don't be put off by being constantly told by a pom to shut up and you get treated like you're in class one as soon as you're arrive, told how to sit, how to run, its just their way of filtering out the ones with bad attitude. They just throw the worst of basic training at you in 3 days, its great fun though.

They assess every single thing you do and say from the time you arrive. But its the best fun you'll have in 3 days. As a group of usually 25 guys max, you get to have a one on one with the commandos who've seen action in Iraq or Afgh, ask questions etc its really amazing.

You'll need an SA passport valid for 4 years or more( The 4 years covers your total service time) and a 6 month visa to stay which covers basic. After basic, you decide if you want to carry on, and sign again, gaining right to remain status.

After that its plain sailing....kinda :D

Edit: Just get fit is best advice I can give. Run lots and do lots of press ups. Always somebody who didn't make his bed up right in the morning (hence the endless press ups)
 
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Pitbull said:
If I join the British Army, do I need to pay SA tax and UK tax?
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Youre not paid by a South African employer then... I was involved in the Moz MOZUL project and got paid in Pounds (years ago now) .. Since my earnings came from the UK. The SA taxman hated me and tried a few times to extort money from me... he lost all the cases.

On the soccer cases... the players wont be paid from a South African monetary source.. so I think the taxman is going have to whistle dixie through his bunghole before he sees any Football players money.
 
Ricard said:
Youre not paid by a South African employer then... I was involved in the Moz MOZUL project and got paid in Pounds (years ago now) .. Since my earnings came from the UK. The SA taxman hated me and tried a few times to extort money from me... he lost all the cases.

On the soccer cases... the players wont be paid from a South African monetary source.. so I think the taxman is going have to whistle dixie through his bunghole before he sees any Football players money.
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this is exactly what amazed me how this person from this "professional" tax and audit firm could have made an assumption like this. it is obvious that these arent' south african players and would not be paid from a south african monetary source?????? why did they make this statement in the first place. only makes them look like fools.
 
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