Sharper focus on RENTAL INCOME:
During the past week, particularly in the media, taxpayers were alerted to the fact that they should ensure that they declare any taxable rental income to SARS.
This warning is relevant not only to South African tax residents in respect of all their rental income, but also to non-residents in respect of rental earned from South African properties (South African source income).
In the case of a transfer of immovable property that is situated in South Africa, the transfer duty receipt from SARS must be registered at the Deeds Office. The Deeds Office is responsible for the registration, management and maintenance of the property registry of South Africa. Even in instances where a transaction is exempt from transfer duty, the SARS exemption receipt from SARS must still be provided to the Deeds Office. As part of its continuing data-focused approach, SARS is making use of the information that it has on hand, and taxpayers that do not declare their rental income timeously are likely to find their non-compliant behaviour coming to light. Rather than hiding the income, it is recommended that taxpayers and tax practitioners declare the requisite income, and rather spend their time wisely, investigating and preparing proof of the expenses that may be claimed against the rental income earned.
#rentalincome #sars #compliance
