SARS E-Filing 2018

[Drifter]

anyone banking with FNB,? What time of the day did you get your return?

06:00 AM

 

[chromedome]

Yes, it shows departure and arrival dates. SARS reckon I need to "prove" I did not receive income whilst in the UK. Since I am not registered with HM Customs and Revenue, there is no documentation. I took along an affidavit from my cousin with whom we stayed most of the time. However, SARS want financial documents

If you received any income generated in SA during that time i.e rent,interest, disposal of assets (capital gain), etc. You would have to declare it and that would require supporting documents.

 

[c10n3d_0r6]

If you received any income generated in SA during that time i.e rent,interest, disposal of assets (capital gain), etc. You would have to declare it and that would require supporting documents.

I'm curious about this. I understand requiring supporting documents to claim back expenses as proof of those expenses, but what about income. What if you don't have the supporting documents? What happens then? I doubt SARS would also just "not count it" as they do for expenses.

 

[Ericano]

Did you file earlier than the 1st ?

No last Friday..

 

[Moto Guzzi]

/Tinfoil hat on

What if, because they now have to pay out refunds within 7 working days once finalised, they are delaying everything up to finalisation to give themselves more time and delay things. That's how it feels.

All previous years I have been selected for verification and it was all done and dusted 48hrs later.

After I got the feeling EFiling went better as last 3 years, I also got the same feeling as you this year after filed, and its growing stronger.

Maybe they have to get money in 1st from 2018, the money they owe me is probably blasted already away seeing they sit on it, not me.

 

[chromedome]

I'm curious about this. I understand requiring supporting documents to claim back expenses as proof of those expenses, but what about income. What if you don't have the supporting documents? What happens then? I doubt SARS would also just "not count it" as they do for expenses.

The onus is on you to keep all documents for 5yrs ( if you did not submit a return it's indefinite ). I just went through this and had to find documents from the 90's for outstanding returns ( I did have some), however SARS SAP system only goes back to 2000, so in the end they scrapped the returns.

 

[c10n3d_0r6]

The onus is on you to keep all documents for 5yrs ( if you did not submit a return it's indefinite ). I just went through this and had to find documents from the 90's for outstanding returns ( I did have some), however SARS SAP system only goes back to 2000, so in the end they scrapped the returns.

But what if you haven't, or your house burnt down or the car was stolen with them inside etc? I have all my documents, but it's just something I've wondered about.

 

[chromedome]

But what if you haven't, or your house burnt down or the car was stolen with them inside etc? I have all my documents, but it's just something I've wondered about.

They did mention getting an affidavit, but seeing as it never got to that point I did not pursue, it.

 

[Ericano]

Very annoyed

 

[ranger]

In 2009 I went to live overseas for 22 months.

What were you doing there? Do you have any documented proof of what you were doing? Even if you had income overseas, you most likely shouldn't be taxed on it, see below., so it would be best to declare anything or provide any evidence that you were occupied overseas (and didn't conveniently return in between to work).

SARS gave me the name of an accountant who would submit returns for 2009 and 2010. Paid him R1400 in advance

In 2017 was awaiting refund of earned interest exemption, amounting to R72000. Told that I would not get it since I had not submitted a return for 2009 and 2010. Phoned this accountant's office to find he died in 2014. No-one there knows anything and will not look

Visited SARS Bellville on 25th June and waited 6 hours. Aggressive lady wants "all my documents" from 2009/10. Only have a bank statement showing minimal activity during this 23 month period. This is no good she says, go back and look again

Not sure what to do, since I was told previously that SARS only required you to keep docs for 5 years. Am now told it must be 15 years and it is my fault for not complying.

I worked overseas (for a South African company, paid in South Africa into a South African bank account) in the 2009-2010 tax year for long enough to qualify for the 'Section 10 exemption' which requires satisfying both of the following requirements:
* Out of South Africa for more than 183 days of the year of assessment
* Out of South Africa for more than 61 consecutive days in the year of assessment

My remuneration relected on my IRP5 and on my IT34A, mainly as "Foreign income - taxable" but some as "Foreign income - non-taxable" and some as "Foreign other allowances - taxable". All of these were then deducted as:
"4041 Amounts taxed on IRP5 but comply with exemptions i.t.o. Section 10(1)(o)(ii)"

I effectively didn't pay any income tax for the 2009/2010 tax year.

My return was submitted by a tax consultant. I have one SARS directive listed, but I think it was for something else. The consultant sent me a spreadsheet on which I had to indicate for every day of the tax year whether I was in South Africa or not, and this was submitted as supporting documents along scans of all the pages of my passport and a copy of my employment contract, to SARS. It did take a few months to get this finished (e.g. incorrect assessment, dispute, upload supporting docs, wait for review, new assessment, new dispute etc.), but it should be doable without a consultant if you can afford to invest about 12 hours in it (mostly outside business hours as you can mostly do it online).

(I checked all of this on eFiling now, the documents uploaded by the consultant were there).

See here for details.

So, do check whether there are any documents that are uploaded etc. in your eFiling.

Hope this helps (even though it doesn't match your situation), but note that you should try and resolve it, as some of these rules are changing soon, and with it people will forget and it will be more difficult to resolve.

 

[Foxhound5366]

I got paid today out of the blue, no e-mail or nothing from SARS ... just money Thanks Mr Taxman!

 

[Koosvanwyk]

But if you didn't live in SA you were a non-resident and wouldn't be subject to SA tax... This is weird.

That is unfortunately not entirely true

South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of where their income was earned. By contrast, non-residents are taxed on their income from a South African source.

To determine residence you need to look at both the common law concept as well as the physical presence test


Common law: An individual will be considered to be ordinarily resident in South Africa, if South Africa is the country to which that individual will naturally and as a matter of course return after his or her travel. It could be described as that individual's usual or principal residence, or his or her real home.

Physical presence test: To meet the requirements of the physical presence test, that individual must be physically present in South Africa for a period or periods exceeding
- 91 days in total during the year of assessment under consideration;
- 91 days in total during each of the five years of assessment preceding the year of assessment under consideration; and
- 915 days in total during those five preceding years of assessment.

Meaning, that if you are out of the county for 2 years (and you only had a 2 year Visa) you will still be considered a SA resident (as you have no choice but to return to SA after 2 years) and you will therefore need to pay tax in SA (on both your SA and foreign income) subject to certain deductions and limitations and double tax agreements

 

[c10n3d_0r6]

What were you doing there? Do you have any documented proof of what you were doing? Even if you had income overseas, you most likely shouldn't be taxed on it, see below., so it would be best to declare anything or provide any evidence that you were occupied overseas (and didn't conveniently return in between to work).



I worked overseas (for a South African company, paid in South Africa into a South African bank account) in the 2009010 tax year for long enough to qualify for the 'Section 10 exemption' which requires satisfying both of the following requirements:
* Out of South Africa for more than 183 days of the year of assessment
* Out of South Africa for more than 91 consecutive days in the year of assessment

My remuneration relected on my IRP5 and on my IT34A, mainly as "Foreign income - taxable" but some as "Foreign income - non-taxable" and some as "Foreign other allowances - taxable". All of these were then deducted as:
"4041 Amounts taxed on IRP5 but comply with exemptions i.t.o. Section 10(1)(o)(ii)"

I effectively didn't pay any income tax for the 2009/2010 tax year.

My return was submitted by a tax consultant. I have one SARS directive listed, but I think it was for something else. The consultant sent me a spreadsheet on which I had to indicate for every day of the tax year whether I was in South Africa or not, and this was submitted as supporting documents along scans of all the pages of my passport and a copy of my employment contract, to SARS. It did take a few months to get this finished (e.g. incorrect assessment, dispute, upload supporting docs, wait for review, new assessment, new dispute etc.), but it should be doable without a consultant if you can afford to invest about 12 hours in it (mostly outside business hours as you can mostly do it online).

(I checked all of this on eFiling now, the documents uploaded by the consultant were there).

See here for details.

So, do check whether there are any documents that are uploaded etc. in your eFiling.

Hope this helps (even though it doesn't match your situation), but note that you should try and resolve it, as some of these rules are changing soon, and with it people will forget and it will be more difficult to resolve.

According to this it's 60 consecutive days.

https://www.taxtim.com/za/blog/tax-exemption-for-foreign-employment-income--what-you-need-to-know

 

[Hxx]

I got paid today out of the blue, no e-mail or nothing from SARS ... just money Thanks Mr Taxman!

Were you flagged for audit?

 

[Koosvanwyk]

What were you doing there? Do you have any documented proof of what you were doing? Even if you had income overseas, you most likely shouldn't be taxed on it, see below., so it would be best to declare anything or provide any evidence that you were occupied overseas (and didn't conveniently return in between to work).



I worked overseas (for a South African company, paid in South Africa into a South African bank account) in the 2009010 tax year for long enough to qualify for the 'Section 10 exemption' which requires satisfying both of the following requirements:
* Out of South Africa for more than 183 days of the year of assessment
* Out of South Africa for more than 91 consecutive days in the year of assessment

My remuneration relected on my IRP5 and on my IT34A, mainly as "Foreign income - taxable" but some as "Foreign income - non-taxable" and some as "Foreign other allowances - taxable". All of these were then deducted as:
"4041 Amounts taxed on IRP5 but comply with exemptions i.t.o. Section 10(1)(o)(ii)"

I effectively didn't pay any income tax for the 2009/2010 tax year.

My return was submitted by a tax consultant. I have one SARS directive listed, but I think it was for something else. The consultant sent me a spreadsheet on which I had to indicate for every day of the tax year whether I was in South Africa or not, and this was submitted as supporting documents along scans of all the pages of my passport and a copy of my employment contract, to SARS. It did take a few months to get this finished (e.g. incorrect assessment, dispute, upload supporting docs, wait for review, new assessment, new dispute etc.), but it should be doable without a consultant if you can afford to invest about 12 hours in it (mostly outside business hours as you can mostly do it online).

(I checked all of this on eFiling now, the documents uploaded by the consultant were there).

See here for details.

So, do check whether there are any documents that are uploaded etc. in your eFiling.

Hope this helps (even though it doesn't match your situation), but note that you should try and resolve it, as some of these rules are changing soon, and with it people will forget and it will be more difficult to resolve.

South Africa changed for a source-based taxation system to a resident based tax system in 2001 / 2002.

There has been some significant change to the resident based tax system since 2010

 

[Foxhound5366]

Were you flagged for audit?

Nope. Last year I was, not this year.

 

[Moto Guzzi]

I got paid today out of the blue, no e-mail or nothing from SARS ... just money Thanks Mr Taxman!

What was your status you last checked-?

 

[ranger]

According to this it's 60 consecutive days.

https://www.taxtim.com/za/blog/tax-exemption-for-foreign-employment-income--what-you-need-to-know

Sorry, that was a typo, which I noticed and meant to fix before submitting, but forgot. You will note the URL I provided also states 60 days.

I have now fixed the typo in the post.

 

[ranger]

Meaning, that if you are out of the county for 2 years (and you only had a 2 year Visa) you will still be considered a SA resident (as you have no choice but to return to SA after 2 years) and you will therefore need to pay tax in SA (on both your SA and foreign income) subject to certain deductions and limitations and double tax agreements

Yes, you will be considered tax-resident in SA, and you will need to submit a tax return, but income derived from working overseas may be exempt in terms of Section 10(1)(o), see e.g. here.

 

[c10n3d_0r6]

Another thing about that 183/60 day rule. If you're out the country long enough for it to count, is all foreign income earned exempt? Even foreign income that you earned during your time in South Africa?