Tax on foreign income

[Pillman]

So from doing a bit of reading, I take it one has to report all income from a foreign source like Google AdSense, etc. to SARS. There's no limit before you have to file?

In that case, where and how do I go about reporting it when I file for tax? Is there a special form to declare foreign income, or can I do it through SARS eFiling? Can I declare expenses if it's my main income?

Has anyone here ever not declared their earnings from AdSense or some other source of foreign income?

In a situation like that, can you arrange a repayment or engage in a VDP where you can disclose those past earnings, or do you have to wait it out until they contact you?

[lewskannen]

So from doing a bit of reading, I take it one has to report all income from a foreign source like Google AdSense, etc. to SARS. There's no limit before you have to file?

In that case, where and how do I go about reporting it when I file for tax? Is there a special form to declare foreign income, or can I do it through SARS eFiling? Can I declare expenses if it's my main income?

Has anyone here ever not declared their earnings from AdSense or some other source of foreign income?

In a situation like that, can you arrange a repayment or engage in a VDP where you can disclose those past earnings, or do you have to wait it out until they contact you?

Hi

My earnings on Google Adsense exceeds 25-30k per month, so that is an amount I am not willing to take a chance on and I report this income every year on my annual tax returns. There is a special foreign income section on SARS eFiling where I report this income on.

As far as I know all foreign income has to be reported. I do know that banks report this income to SARB and SARS in any event, so they have a fairly accurate way to determine if you are reporting the income.

When I started off with Adsense, I only received cheques about every 3-5 months, so the first year I have not reported it. The next year I went to SARS for a problem I had and out of interest asked them about the Adsense income. They informed me back then it had to be reported, irrelevant of the amount. So, I continued from the second year onwards to report this income every year.

[Pillman]

Hi

My earnings on Google Adsense exceeds 25-30k per month, so that is an amount I am not willing to take a chance on and I report this income every year on my annual tax returns. There is a special foreign income section on SARS eFiling where I report this income on.

As far as I know all foreign income has to be reported. I do know that banks report this income to SARB and SARS in any event, so they have a fairly accurate way to determine if you are reporting the income.

When I started off with Adsense, I only received cheques about every 3-5 months, so the first year I have not reported it. The next year I went to SARS for a problem I had and out of interest asked them about the Adsense income. They informed me back then it had to be reported, irrelevant of the amount. So, I continued from the second year onwards to report this income every year.

Okay, thanks for your input.

So you haven't done anything about the income you hadn't reported before asking them about it?

[lewskannen]

Okay, thanks for your input.

So you haven't done anything about the income you hadn't reported before asking them about it?

No, as for the first year, I totally left it and have not reported it. Nobody came back to me (unless they will do so now reading this post ), but I have reported all the income from the second year onward, and it is now almost 7 years later.

[Pillman]

No, as for the first year, I totally left it and have not reported it. Nobody came back to me (unless they will do so now reading this post ), but I have reported all the income from the second year onward, and it is now almost 7 years later.

I see. They probably have bigger fish to fry.

[sterne.law@gmail.com]

Well to throw a spanner in the works.
It may be liable to tax in two countries.
In SA because you are resident and in another country if they tax at source. If there is no double tax agreement......

At 25 thousand a month its possibly worth setting it up offshore.
Offshore companies are not that expensive to set up nor are yearly costs (And you can have it open in 4 days!!!)

[Houses4Rent]

The little I learnt even with double taxation agreements there could be tax liable in both countries.
Lets say income is from USA and their rate is 20%. RSA rate is 25%. So you pay 20% in USA and 5% in RSA.
So you do not pay double, but still twice.
This is my understanding, I do not have personal experience with that - at least not yet.

[sterne.law@gmail.com]

Different treaties have different agreements.
Sometimes you will get a foreign tax credit.

It is a critical area of tax planning and decision making when getting involved in different countries.

[Pillman]

Hi again. I've looked over the list of important dates over at the SARS website, but I need to clarify a couple of things. Can I register as a taxpayer at any time or only specific times of the year, and what exactly is the deadline if I want to file via SARS eFiling? So many dates and terms and I'm getting in a panic just looking at it.

26-09-2014 - End of Tax Season for Individuals (manual submissions)
21-11-2014 - End of Tax Season for Individuals

Is the latter one for eFiling?

[Houses4Rent]

As far as I know vie efiling the deadline is end January 2015

[Pillman]

As far as I know vie efiling the deadline is end January 2015

Yes, I'm sure you're right. I know my brother leaves it to the last minute! Thanks.