VHA Accounting Solutions

Non-residents and earners of foreign income are also receiving extra attention this year

The tax season for the 2022 tax year has just started, and it will be one of the shortest to date.  The period to submit tax returns opened on 1 July 2022 and runs to 24 October 2022 for individual taxpayers who are not provisional taxpayers.

Determining whether you need to file a tax return

On 3 June 2022, SARS Commissioner Edward Kieswetter declared who he requires to file a tax return for the 2022 filing season.

In general, you only need to submit a tax return if any of the following circumstances apply to you:

  • You received a salary or retirement income from more than one source;
  • Your salary or retirement income was from a single source, but exceeded R500 000;
  • You conducted a trade within or outside South Africa;
  • You are a South African tax resident but received employment income from outside South Africa;
  • You receive travel, subsistence, or office-bearer allowance against which you will be claiming expenses;
  • You have a company car;
  • You held funds in foreign currency or assets outside South Africa with a combined value exceeding R250 000 at any stage during the tax year;
  • You had capital gains or losses exceeding R40 000 on the disposal of local assets;
  • You received income or capital gains from any foreign asset; or
  • You hold participation rights in a Controlled Foreign Company.

However, if a tax return is issued to you or you receive notification from SARS that you are required to submit a return, such return will need to be submitted even if you have answered ‘no’ to all of the criteria listed above.

Comments on the notice issued by the SARS commissioner

The Commissioner indicated in his notice that he requires South African tax residents to disclose their foreign assets and funds they held during the 2022 tax year.  He also requires tax residents to declare all foreign-sourced earnings (irrespective of the amount received) and mentioned more than once that residents who received any amount for services rendered abroad need to submit tax returns.

This underlines SARS’s continuous focus on South Africans who are working in foreign countries, and it is critical that these South Africans declare their foreign earnings—even if they are subject to the foreign exemption, and irrespective of whether tax has been deducted by the foreign jurisdiction (although such tax will entitle the taxpayer to foreign tax credits to the extent that such tax does not exceed the equivalent South African tax liability on such income).

Only taxpayers who do not fulfil the South African residence tests do not need to declare their foreign earnings or assets.  It is thus critical for South Africans who have left the country permanently to formalise their non-resident status with SARS in order to align their factual situation with their SARS tax status.

Taxpayers who have completed the Tax Emigration process in order to become non-resident for tax purposes are only taxed on South African sourced earnings, and not their worldwide earnings.  Accordingly, SARS is taking an extremely stringent approach in considering whether or not a taxpayer is non-resident.

Also, bear in mind that while there is an option to include the date upon which you ceased tax residency in your tax return, doing so does not result in the necessary manual intervention by SARS to prove and obtain non-resident status in the majority of cases.

SARS KEY TAX SUBMISSION DATES

Kashveer Mathura

Accounting Portfolio Manager

kashveer@vhaaccounting.com 078 882 9783

Adrian Surjoo

Quality Control Manager, SAICA

Credentials:

  • National Diploma in Cost and Management
  • Accounting
  • Advanced diploma in Accounting Sciences
  • Professional Accountant (S.A.)

Bongumusa Zondi

Director

Bongumusa Zondi, a senior accountant, blends business advisory with expertise in financial reporting and taxation. With just under a decade of experience in accounting and taxation, his career journey began by obtaining a National Diploma in Cost and Management Accounting and an Advanced Diploma in Accounting Sciences at the Durban University of Technology and University of South Africa, respectively. This was followed by a Junior Bookkeeper position at City Printing Works (Pty) Ltd. He began his SAIPA articles at Dobeyn Accounting Soultions and currently leads a dynamic accounting team and manages a sizeable portfolio of clients at VHA Accounting Solutions where he also completed his SAIPA Articles. Apart from assisting clients update their books and stay compliant with relevant authorities, he is fully interested in adding value through business advisory. Helping clients solve their financial problems and provide guidance on potential growth opportunities is his biggest passion. He has been driven by philosophies of teamwork and collaboration.

Notable achievements include qualifying as a Professional Accountant (S.A.) through SAIPA. Beyond the numbers, he enjoys watching sports, tutoring grade 12 learners, playing the piano and listening to classical music composed by Wolfgang Amadeus Mozart and George Frideric Handel, adding a well-rounded dimension to his professional life.

bongumusa@vhaaccounting.com 082 359 4536

Karishma Bhola

Director

The VHA Accounting Solutions team is excited to announce a new insurance service offering headed by Karishma Bhola. Karishma is an accredited financial advisor and has 18 years of experience in the finance industry and expertise in marketing/foreign exchange and business management. As a seasoned financial guru, she prides herself on delivering excellent client service every time.

Vidyanth Bhola

Director / CEO

Passionate about exceptional client service, Vidyanth Bhola serves a wide client base as an advisor and accountant.Vidyanth focuses on tax planning and estate and succession planning, which he approaches with enthusiasm for human relationships and a penchant for teamwork, to achieve outstanding results. In addition to being VHA Accounting Solutions Inc founder and as director of the Bhola group of companies, Vidyanth is involved on the board and advisory level with several non-profit organisations and other initiatives. Vidyanth obtained his BCom degree and H Tax Diploma from the University of South Africa after which he worked at Colenbrander Inc, as a Accounting Portfolio Manager. In 2018, Vidyanth found the accounting firm VHA Accounting Solutions Inc. Vidyanth is a family man and avid rugby fan. He enjoys learning about Aviation and flew a Boeing in the flight simulator in Dubai. Vidyanth also works on various charity organisations and is involved in various food drives. Vidyanth is a member of the South African Institute of Tax Professional (SAITA) and the Southern African Institute for Business Accountants (SAIBA).