A Fin24 user living abroad wants to know about his tax returns at home. He writes:
We have been living overseas for the last 10 years, but have continued to invest in our RAFs, but not claiming the contributions because I have not submitted a tax return since 2003.
I have all the tax certificates, but what I would like to know is how and when I will be able to claim this as a deduction?
Your advice on the most tax effective method of doing so would be most appreciated.
Gavin Came, chairperson of the financial planning committee of the Financial Intermediaries Association of Southern Africa, responds:
It is difficult to answer general queries such as yours without fully understanding your financial position. We therefore strongly recommend that you appoint a financial adviser to assist you.
Generally, the situation is as follows. You can deduct an amount (the greater of R1 750; R3 500 less any SA pension contributions; or 15% of your non-retirement funding income) against the South African income that you received in each of the years since 2003.
Any amount in excess of the calculated allowance can be carried forward to subsequent years until it is fully claimed.
You may therefore be required to submit a return for each of the years in question to establish what you could have deducted, and then calculate what is left to deduct from the current tax year onwards.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
We have been living overseas for the last 10 years, but have continued to invest in our RAFs, but not claiming the contributions because I have not submitted a tax return since 2003.
I have all the tax certificates, but what I would like to know is how and when I will be able to claim this as a deduction?
Your advice on the most tax effective method of doing so would be most appreciated.
Gavin Came, chairperson of the financial planning committee of the Financial Intermediaries Association of Southern Africa, responds:
It is difficult to answer general queries such as yours without fully understanding your financial position. We therefore strongly recommend that you appoint a financial adviser to assist you.
Generally, the situation is as follows. You can deduct an amount (the greater of R1 750; R3 500 less any SA pension contributions; or 15% of your non-retirement funding income) against the South African income that you received in each of the years since 2003.
Any amount in excess of the calculated allowance can be carried forward to subsequent years until it is fully claimed.
You may therefore be required to submit a return for each of the years in question to establish what you could have deducted, and then calculate what is left to deduct from the current tax year onwards.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
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