Facebook   Twitter    e-mail newsletter    YouTube    RSS Feed    Android App    iPhone and iPad App     BlackBerry App    


Results 1 to 14 of 14

Thread: How not to pay income tax by not being in the country for x period?

  1. #1

    Default How not to pay income tax by not being in the country for x period?

    I heard with cricket players you don't have to pay income tax if you are out of the country for x period.

    So let say i work in SA earning 150K 6 months. Then I got to Oz doing vacation works such as apple picking etc for 6 months.
    Do I have to pay income tax on my income earned? What proof do I have to supply SARS?

  2. #2

    Default

    Its all about the origin of the income. If its SA origin you pay tax on that... if the apple farmer in Oz pays you that's tax free in SA, relevant Oz taxes might still apply over there.

    If cricket players are paid by CricketSA they will pay SA tax even if they play on mars for the rest of their lives, if they're paid by an indian company for a game over there its none of sars's business again india might have its own tax rules on that income.

    "Nothing is certain but death and taxes" - Benjamin Franklin
    So there's no escaping buddy
    Last edited by Vegeta; 17-08-2011 at 09:26 PM.
    If you can read this... you can read.

  3. #3

    Default

    No, most countries charge tax based on residence, it's not about the origin of the income.
    I'm ashamed of South Africa. It's an absolute disgrace that you can pass matric with a mark of 30 percent." - Jonathan Jansen

  4. #4

    Default

    Quote Originally Posted by Jola View Post
    No, most countries charge tax based on residence, it's not about the origin of the income.
    You live in SA you get taxed on all SA income even if you travel around... you work in OZ for 2weeks OZ doesn't tax you because you dont live in OZ. Yes thats what i meant
    But what i tried to illustrate was that if you work in OZ but a SA company pays you you get taxed cause you stay in SA and the money comes from SA.. where in the world you're traveling is irrelevant
    Last edited by Vegeta; 17-08-2011 at 09:58 PM.
    If you can read this... you can read.

  5. #5

    Default

    Quote Originally Posted by Vegeta View Post
    You live in SA you get taxed on all SA income... you work in OZ for 2weeks OZ doesn't tax you. Yes thats what i meant
    OK so how long do I have to work in Oz for me not to pay tax on the OZ income in SA if I am a SA resident? The cricketers did it by not paying sa tax on their IPL incomes so there must be a way.

  6. #6

    Default

    http://news.oneindia.in/2011/04/04/s...x-aid0126.html

    South African residents, who are out of the country for at least 183 days of a tax year with 60 of them being consecutive days, gain exemption from paying tax here.

    Smith's agent, Craig Livingstone, told the weekly ''City Press'' that Smith was well within his rights to take advantage of these tax laws.

    "Like any person who spends time outside the country, (Smith) becomes eligible for those tax benefits. Businessmen and other sportsmen are entitled to them, so why shouldn't Graeme be?" Livingstone said
    So is this all income including SA income or is this only foreign income?

  7. #7

    Default

    Quote Originally Posted by nfbs View Post
    http://news.oneindia.in/2011/04/04/s...x-aid0126.html

    So is this all income including SA income or is this only foreign income?
    aaah forgot about that rule

    "South African resident taxpayers who work abroad still need to declare their foreign income in their individual income tax returns. This income can however be exempted form South African tax by claiming a tax exemption where certain conditions of absence have been met. These conditions are:
    It must be employment income; and
    The income must be earned while you where working outside South Africa; and
    The time that you must have been outside South Africa on work must be more than 183 days in any 365 day period and of this 183 days 60 days of absence must have been continuous; and
    The income must become taxable in your hands during the 365 days referred to in the previous point."


    It clearly refers to foreign income that might be taxable in SA like: interest, royalties, annuities, rentals and other "passive" income. Picking grapes in OZ for a wage wont be taxable because its not "passive income" so it wont even come into the equation.
    I have no idea what type of income playing cricket would be...

    But also keep in mind my knowledge of foreign income tax is sucky
    Last edited by Vegeta; 17-08-2011 at 10:16 PM.
    If you can read this... you can read.

  8. #8
    Super Grandmaster
    Join Date
    Sep 2007
    Location
    ~~~\o/~~~/\~~~
    Posts
    7,658

    Default

    So pretty much what they're saying is if you're earning $'s in Dubai you don't get taxed on it. But you do get taxed on the ZAR you made at piet's plaza in brakpan before you left.
    Chicks are car guards.™ Kick 'em inna panty!

    I suffer from A.D.D. : Attention Deficit Diso - oooh lets go ride bikes! ~

  9. #9

    Default

    Depends on the double taxation treaties. You'll have to read up on the one S.A has with Australia

  10. #10

    Default

    Don't you also get taxed when you bring that foreign funds into the country?
    When have you demonstrated leadership skills?
    "Well my best example would be in online video gaming. I pretty much run the show; it takes a lot to do that."

  11. #11

    Default

    Quote Originally Posted by nfbs View Post
    I heard with cricket players you don't have to pay income tax if you are out of the country for x period.

    So let say i work in SA earning 150K 6 months. Then I got to Oz doing vacation works such as apple picking etc for 6 months.
    Do I have to pay income tax on my income earned? What proof do I have to supply SARS?
    Invest in property in Aus. Work here and got income from Aus that is not taxed here

  12. #12

    Default

    Quote Originally Posted by Vegeta View Post
    aaah forgot about that rule

    "South African resident taxpayers who work abroad still need to declare their foreign income in their individual income tax returns. This income can however be exempted form South African tax by claiming a tax exemption where certain conditions of absence have been met. These conditions are:
    It must be employment income; and
    The income must be earned while you where working outside South Africa; and
    The time that you must have been outside South Africa on work must be more than 183 days in any 365 day period and of this 183 days 60 days of absence must have been continuous; and
    The income must become taxable in your hands during the 365 days referred to in the previous point."


    It clearly refers to foreign income that might be taxable in SA like: interest, royalties, annuities, rentals and other "passive" income. Picking grapes in OZ for a wage wont be taxable because its not "passive income" so it wont even come into the equation.
    I have no idea what type of income playing cricket would be...

    But also keep in mind my knowledge of foreign income tax is sucky
    I think there is a section 10 o or 10 (1)o my friend once spoke about if you work out of the country for longer than half the year. i also came across this site https://taxtim.com/blog/?p=36 and some TaxTim thing www.taxtim.com they seem to help with all this. Why is tax so confusing!!!

  13. #13

    Default

    Also note that there is a massive move against tax evaders right now. Guys like Eduardo Saverin (facebook founder) renounced his US citizenship for tax reasons and there is a bill being pushed in the US right now called the Ex Patriot act which will essentially bar him and people like him from ever returning to the USA. Sean Connery also faced massive backlash in his homeland of Scotland for evading tax and moving to a tax haven. The world is starting to put laws and systems in place to punish those who try avoid taxes via living internationally in tax havens while retaining all the benefits of home.

  14. #14
    Grandmaster
    Join Date
    Apr 2006
    Location
    Stanger - KZN
    Posts
    2,980
    Blog Entries
    1

    Default

    You guys are right about half the year, i know a Dr who works here for about 6 months then jets off to the UK and earns top money there and his doing it for a few years.

    If it is illegal then karma will catchup lol but yeah, i wouldn't want to play around with this. Tax is confusing
    What is psoriasis? l http://goo.gl/5a8KJ <- HP MS HTPC thread <- -> http://goo.gl/7ruHe HW Bargains <-

Bookmarks

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •