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Foreign Property and Tax
- Thread starter Hendrix
- Start date
As with most DTA's it is almost copy and paste. The wording in the DTA will state " MAY be taxed in the other state" and this confuses people.
The preferential treatment of it would be that it will be taxed where the seller is a tax resident as he/she will not benefit from this tax where this property is sold but will where the seller is resident.
This will differ if the property is an inherited property.
The preferential treatment of it would be that it will be taxed where the seller is a tax resident as he/she will not benefit from this tax where this property is sold but will where the seller is resident.
This will differ if the property is an inherited property.
HavocXphere
Honorary Master
If he is a resident then he is legally obligated to pay tax on it regardless of where he "brings it".
And yeah...either a DTA applies or you pay SA tax
gimpex
Senior Member
He will have paid inheritance tax already. Now it is CGT in SA only. Inheritance tax is country specific but the CGT will be payable in SA.
Your world wide income will be payable where you are resident.
The tax paid on the inheritance can be deducted as an expense.
Your world wide income will be payable where you are resident.
The tax paid on the inheritance can be deducted as an expense.