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Here is the letter SARS is sending to wealthy taxpayers in South Africa
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high-wealth individuals unit as it aims to improve compliance amongst wealthy South Africans.
SARS has now begun sending letters to some taxpayers, detailing its plans for the unit and how it will look at improving collections.
It also informs the taxpayer that the unit will be directly monitoring their tax portfolio and profile. The unit said it will also assign a dedicated relationship manager which will serve as a ‘central entry point to SARS’ for the taxpayer.
“Our mandate requires us to collect revenue to enable government to build a capable state that ensures economic and social development for the well-being of all South Africans,” the letter states.
SARS signs heavy-hitter to help take on wealthy South Africans
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SARS commissioner Edward Kieswetter has announced Judge Dennis Davis will be joining the tax collector on a more permanent basis, as it puts a larger focus on wealthy South Africans.
In a media briefing this week, Kieswetter said that Davis will help SARS with the implementation of its strategies, specifically those which are directed at closing the tax gap and the wealthy.
Davis most recently headed up the Davis Tax Committee which was aimed at reviewing South Africa’s tax policy framework and its role in supporting the objectives of inclusive growth, employment, development and fiscal sustainability.
Expat tax changes for South Africa explained
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South African expatriates have been kept in suspense regarding a proposed law change aimed at providing relief to those who could not leave the country under lockdown.
This amendment was confirmed with the promulgation of the Taxation Laws Amendment Act (TLAA) on 20 January 2021, which means these expatriates can now rest easy, says Jean du Toit, head of Tax Technical at Tax Consulting SA.
Under the amendment, South African resident taxpayers who earn their remuneration in respect of services rendered abroad may qualify for an exemption from income tax of up to R1.25 million, he said.