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Thread: Are funds from abroad taxable?

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    Are funds from abroad taxable?

    Hi. I have a property business and may receive funds from abroad from potential investors. Are these funds deemed to be income in the current tax year? Would my business be taxed on the entire funds or may I deduct certain costs/expenses etc.?
    I would appreciate some input if anyone has any to give.
    Many Thanks

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    Site Caretaker Dave A's Avatar
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    It has to be income to attract taxation. If it's capital contributions, not much to worry about tax wise at this point.
    The trouble with opportunity is it normally comes dressed up as work.

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    The question is how are you going to receive the money, is it for providing a service or what, when you tell us that you will have the answer
    ---There is no traffic at the extra mile---

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    Smile

    Yes, the capital inlay will go towards the servicing of a contract...

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    I did not realise that it would be regarded as capital contributions as it was coming from outside of SA...However, it would be used to service these customers, would it not then be regarded as Revenue. Thanks

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    Site Caretaker Dave A's Avatar
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    The whole idea of obtaining capital into a business is to deploy it to obtain a return, usually via the provision of either goods or services.

    Let's try this another way -
    Are you providing goods or services to these "investors"?
    The trouble with opportunity is it normally comes dressed up as work.

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