Tax refund on South African pension and annuity income

If you’re a South African emigrant and you draw a pension or annuity from South Africa you could save a substantial amount on tax.

How to claim your tax refund on South African pension and annuity income

If you’re a South African emigrant and you draw a pension or annuity from South Africa you could save a substantial amount on tax.

The Double Taxation Agreement and tax exemption

As a tax resident of your new country you will typically be taxed on your worldwide income, but you may already have been taxed in South Africa on this ’foreign sourced’ income – even though you are not a tax resident there anymore. Essentially this means that you could be liable to pay tax on the same income in South Africa and your new country of residence.

Luckily South Africa and certain countries have a Double Taxation Agreement (DTA) in place to assist South Africans living abroad. The purpose of this agreement is to eliminate double taxation, which means you may be eligible for tax relief.

In order to qualify for the tax relief in South Africa, you will need to submit a special application to SARS. The administrative process can be challenging, which is where FinGlobal is ready to assist.

Most periodic pensions/annuities are taxed in full in South Africa, however you will need to include the gross income in your tax return in your new country of residence. If there’s a DTA in place between your country of residence and South Africa, the DTA could state that your periodic pension/annuity is only taxable in your new country of residence.

The RST02 – refund on tax levied on pension or annuity income

If you qualify for tax exemption under the DTA no foreign tax credit will be issued and you will need to apply to SARS to have the tax levied in South Africa refunded. An RST02 (Request by Non-Resident for a Refund from South African Tax for Pension and/or Annuities in terms of a Double Taxation Agreement) application will have to be submitted to SARS to request this refund.

This relief will also typically – depending on your circumstances – provide you with a tax saving due to the difference in marginal tax rates between the two countries.

FinGlobal can process your tax relief

Applying for tax relief can be a lengthy and confusing process. Following the wrong procedures could also make you guilty of non-compliance, which could see you face hefty fines and surrender large portions of your income to authorities in South Africa or abroad.

FinGlobal can take this administrative burden off your hands. Our services are compliant, efficient, fast and ensures the greatest value for South African emigrants abroad.

In addition to being fully compliant with revenue authorities in South Africa and abroad, we will ensure that you receive the optimal benefits due to you under foreign tax treaties and that the admin process is expedient.

So if you, or your elderly relatives or friends living abroad are struggling with their RST02 or RST01 applications, we can assist you with this process and ensure that you don’t surrender unnecessary funds to the tax man on either side of the pond.

Get a free tax refund assessment

Leave your details below.

 

 

 

 

Licensed South African Financial Services Provider FSP # 42872

Exchange rates

Can't find your country? Contact us

 

Other services

 

Please Call Me

We’ll answer all your questions

Free Financial Report

Get a FREE financial report on your South African policies

Our Fees

View information on our fees

Frequently Asked Questions

Have a question? Look at our FAQ’s or request a call back

Client testimonials

Thank you FinGlobal (previously cashkows). The services you provided were outstanding. I should have use you years ago. Most friendly, professional and helpful personal. Much appreciated.

Pieter Steyn

FinGlobal (previously cashkows), took care of everything! It was the best experience I have ever had with tax and financial consultants and the fees were very reasonable!! The consultants at FinGlobal really know what they are doing!! Thank you so much for a stress-free process!!

Yvonne Flattery-Richter

Is living as an expat in Hong Kong worth the price?

Many professionals often get expat postings to expensive cities, and one of the most expensive cities according to the consulting firm Mercer’s...
Read More

UK or Australia – where will you find the most expat South Africans?

The UK and Australia have always been two top destinations for South African expats. Australia with its southern hemisphere beach lifestyle almost...
Read More

Is the expat romance with the UK and USA over?

The UK and the USA have always been two top expat destinations. But in the past year political and economic uncertainty in both these countries are...
Read More
Let us call you for a FREE consultation

We’ll answer all your questions. Your personal consultation is completely free and without obligation.

Please Call Me
Request a call back        Please Call Me

Welcome to FinGlobal - previously Cashkows.com

If you have any questions let us call you back and we'll answer all your questions regarding our services for South African expats.


 





You have Successfully Subscribed!