Paid in USD - advice needed

[Spizz]

I wonder if any of you clever people can help me with some advice. I'm moving jobs in February working overseas, and will be getting paid in US Dollars. So now I'm wondering what the best way to handle this for tax and currency conversion purposes.

I'm thinking I want to have say 60% of my salary paid into my regular FNB cheque account and converted to Rands, and the other 40% into an account which it stays in dollars in some kind of offshore account so it's there if I need a lump sum to pay the tax come return time.

It'll all be declared, I'm not thinking of bumping the taxman, I just want to have the 'tax' money seperate just in case. I will meet ex-pat criteria but rather safe than sorry. And of course it's a good way to save.

So I'm thinking of getting an account with a 'world' bank like HSBC, but have not got the faintest idea how to go about it.

I'm really quite unaware of whatever options may be available and am getting a bit lost surfiing through bank websites. So any pointers in the right direction would be great so I can read up a bit on the options available.

 

[louisek]

Ask your employer to give you a letter so you can open an account overseas. You didn't say which country you are going to, so I cannot recommend a bank

 

[Spizz]

Thanks, a letter will be no problem. Maybe I can just use my contract?

I'll be working in Senegal initially and after then it'll be either northern Europe or Asia.

 

[guest2013-1]

If you're working there for 6 consecutive months you will fall under the tax laws of the country and pay tax locally and not in SA.

Where the money goes doesn't matter. If it's less than 6 months then you fall under SA taxation which is US Dollars * Exchange Rate * Whatever Bracket you fall under

 

[Spizz]

If you're working there for 6 consecutive months you will fall under the tax laws of the country and pay tax locally and not in SA.

Where the money goes doesn't matter. If it's less than 6 months then you fall under SA taxation which is US Dollars * Exchange Rate * Whatever Bracket you fall under

Tax is paid locally, but I suppose I want to tuck 40% away as both a security blanket with SARS until I've filed my return and I'm in the clear. I know I'll be exempt because I'll meet the 180 days and 60 days consecutive rule as I have done for the last 4 tax years. Difference is I was paid in SA in the company I'm with now, and taxed in SA every month which SARS refunded me once a year.

Now it's a different company and a different system and I guess I'm just looking for an account which I can keep the 40% in USD in. Now they give me my dosh in USD, local taxes paid and I'm just wondering the best way to handle things.