South African Tax refund
cashkows.com specialises in reclaiming overpaid tax from the South African Revenue Service (SARS). We focus mainly on individuals who have moved from South Africa either to a new country of residence or returned to their native country.
How it works
We’ll evaluate your situation to verify if the SARS assessment and tax paid were correct. This is done at no charge to you as our policy remains – no refund, no fee. You’re most likely to get a refund if you:
- Only worked for part of the year
- Received a lump sum payment (such as a bonus or redundancy)
- Had more than one employer during the year
- Received interest income in South Africa
Earning less than R350 000 per year
Currently an individual who earn less than R350 000 per tax year is not required to submit a tax return to SARS, subject to certain qualifying criteria. Since it’s not a requirement, many individuals don’t file tax returns and miss out on potential tax refunds. A possible refund might be gained from retirement annuity contribution or medical aid expense claims.
Service outside South Africa
When an individual renders services outside South Africa they could qualify for an exemption should they meet the qualifying criteria. The remuneration derived from these services will be exempt from South African tax. Under normal circumstances employers don’t take this into account when calculating the PAYE to be deducted. The individual will therefore have to claim an exemption upon submission of the tax return in order for the tax to be refunded.
Double Tax Agreement
Withholding tax on interest is a tax charged on interest paid to a foreign person from a source within South Africa, which is currently set at a final withholding tax rate of 15%.
An individual may qualify for a reduced rate in terms of the Double Tax Agreement (DTA) between South Africa and the applicable country of residence. The reduced rate is not automatically applied since an individual is required to submit a Withholding Tax on Interest Declaration to the interest payer. It is therefore possible that the payer deducted withholding tax at a higher rate, and the individual will be required to request a refund for the overpaid tax. An application must be submitted to SARS within three years after payment of the interest. The withholding tax will subsequently be refunded to the non-resident.
The cashkows.com solution
These are just some of the causes which might trigger a tax refund. However, every individual’s situation will be different and therefore needs to be reviewed independently. If you would like a free assessment simply leave your details and a very brief explanation of the tax matter you want us to investigate and we’ll contact you!
I recently had a great experience with CashKows and the transfer of my SA retirement annuities to Ireland. CashKows also offered to submit a closing tax return to SARS.Mike Louw