R1m discretionary allowance

[Tongs of Destiny]

Does anyone know if you are taxed on your yearly discretionary allowance for which you are allowed to send overseas?

If I open up a foreign bank account, I can according to SARS transfer R1m per calendar year without a tax clearance. But will I be taxed on the money I send over? This is not a donation or a gift, I'm just sending money to myself..

 

[skimread]

CGT

 

[TheRidDlerX]

I'm guessing u can be taxed if it increases while it's overseas yea, but getting taxed just for sending it, no do not think so. A fee maybe to send it sure

 

[MirageF1]

No. You've already paid tax on it.

 

[bchip]

You are not taxed on it.

Only if there was some kindof event that happened.
Eg sent the money, bought shares then only on the sale of the shares.
But bank account to bank account has no event

 

[phiber]

There is no tax payment on transfer of funds overseas, as mentioned before this is money that has already paid tax. The issue is the source of funds needs to be validated. You can apply to transfer more than 1million as well, the process up to 10mil is pretty straight forward from what I am told.

Additionally if you remain tax resident in South Africa, and that money makes money (interest, rental etc.) then you are responsible to declare those earnings on your tax return. Those earnings would be liable for taxation, but only the earnings, not the source funds (as they have been taxed when you earned them).

 

[quovadis]

Capital Gains Tax