COME HOME NEWSLETTER

Number 48 - March 2008

 

Dear Readers

Kind regards from Pretoria!

 

Once again, we start with the usual essential news:  This is the free newsletter of the Come Home Campaign of AfriForum for all South Africans intending to return to South Africa, in process of returning or just back home.  To subscribe or unsubscribe to the newsletter, send your comments or make a contribution, contact us at alana@afriforum.co.za.  Mark the email “COME HOME SUBSCRIBE”, “COME HOME UNSUBSCRIBE”, or with the topic of your choice.  The newsletter is a monthly email publication which is available in either Afrikaans or English.  New subscribers are always most welcome.  Also bear in mind that although we select our advertisers with care, we cannot guarantee or be held responsible for the quality of their services or products.  Advertisements are published free of charge.  Please also feel free to comment on their service delivery.

JACOB ZUMA ON EMIGRATION

On 6 March 2008, ANC President, Jacob Zuma, attended a dinner hosted by the trade union Solidarity in Centurion.  Solidarity asked direct questions to him, including what his message would be to people considering emigration.  His response might be of interest to South Africans abroad, so we publish an extract from a report by News24:

Common ground on affirmative action should be found, ANC president Jacob Zuma told a largely white Afrikaner gathering on Thursday night.  Addressing a dinner hosted by trade union Solidarity, he told union members that they had no other home than South Africa and as such their concerns should be taken seriously.  "Whatever issues you raise are aimed at making our country more successful, and to create a better future for your children," he said.

Zuma, who arrived early, met separately for almost half-an-hour with the Solidarity leadership.  Afterward he addressed a dinner gathering. "Being a former trade unionist, I feel at home in a gathering of workers such as this one," Zuma said.

He highlighted several issues of concern, including the country's skills shortage, the crime and electricity crises, but focused on affirmative action.

Zuma said affirmative action was needed to ensure the sustainability of freedom and economic growth.  "The majority of the population in any country would have to feature prominently in the economy to ensure long-term growth and sustainable development," Zuma said.  He indicated that the implementation of affirmative action was not an easy task.  "Some perceive the efforts to remove white or male privilege as an assault on the rights of white South Africans or on the rights of male South Africans.  We need to answer such perceptions," Zuma said.  "The lack of discussion and debate creates assumptions and suspicions that are not very real."  The only way to do this was by sitting down and discussing the issue.  "I know your concern that young white South Africans feel they cannot enter the labour market, and the fact that positions remain unfilled because the necessary affirmative action skills are not available.

"Let us find time to engage on these issues thoroughly and see how we can find common ground, for the common good of the country.  "We all seek a society in which no person is privileged at the expense of another, and that no person is oppressed for the benefit of another."

On crime he said "drastic action" was needed.  "We cannot sit with this problem for another decade.  I am aware that you seek further and more intensive engagement on issues, and we would certainly welcome that opportunity," Zuma said.

The speeches of Jacob Zuma and Flip Buys, general secretary of Solidarity, are available from www.solidarity.co.za.

TAX ADVICE FOR SOUTH AFRICANS ABROAD

Fanus Jonck once again has good advice for South Africans residing all over the world:

The question is asked:  “Why do more and more people who are desirous of selling a property contact their tax consultant, before contacting an estate agent?”  The answer to this question is that they want to know how much their capital gains tax is going to be and therefore how much their “total profit” would be upon the sale of their South African property.

It is furthermore also imperative that people contact a tax consultant before their purchase of a property, the reason being that a tax consultant will assist in explaining the tax and capital gains tax implications of buying property in various entities, including but not limited to, the name of a natural person, a company, close corporation and/or a trust.

My advice to parties who are expats or foreigners and wish to purchase property in South Africa is that they purchase the property in more than one of their names.  The reason being that such a person usually is not earning any other taxable income in South Africa and therefore this person’s first R200 000 (R400 000 for a couple) of capital gains will not be taxable.  Should two expats or foreigners purchase together, they will therefore double their tax deduction.  This is because the first R16 000 (R32 000 for a couple) of capital gains annually is exempt and only 25% of the balance is taxed according to the income tax tables.  In South Africa individuals are taxed on income over and above the first R46 000 per individual which is exempt.

Let me explain by way of an example:  If a couple sells and their profit is R500 000, then each will pay R2 250 in tax.  If the property had been registered in the husband’s name only, then his tax liability will be R13 500.

For South African citizens it is usually the most beneficial to buy their primary residence in their own name, due to a R1,5 million primary residence capital gains tax exclusion / exemption.  Additional property should be bought in a trust.  Although more transfer duty will be payable if compared to a purchase by a natural person, a trust is favoured in many instances, the reason being that a trust affords insolvency protection in certain instances.

Although these are basic general principals, each purchaser and seller should, before signing any agreement of sale and/or purchase, consult their tax expert for advice on such a specific sale as no two sales are alike.  For instance, transfer duty could be levied on one sale and VAT on another, of which both could be claimed back, but only in specific instances.  Furthermore should the seller be registered for VAT and the sale be a VAT transaction, but the agent mistakenly not mention in the deed of sale that VAT is payable over and above the purchase price, VAT will have to be deducted from the purchase price, resulting in diminished proceeds for the seller from the sale.

Please also take note that if you are a non-resident and are selling for more than R2 million, that the attorney should then pay SARS 5% as withholding tax (as a provisional capital gains tax payment).  Often it should be possible for a tax consultant to arrange with SARS for a tax directive that zero or a lesser percentage be paid.  Very few attorneys are aware of this.

Advice obtained from a tax expert will in most instances minimize a purchaser’s risk and maximize his/their profit.

You are welcome to contact Fanus Jonck (tax@jonck.net) with your tax queries.

ACT ON MERCENARY ACTIVITIES

In previous issues of the newsletter we reported that legislation had been tabled in Parliament aimed at regulating mercenary activities of South Africans abroad.  This legislation has been passed and will have a significant impact.  This not only applies to soldiers on active duty, but to all South Africans working in any security related position abroad.  The Act was published in the Government Gazette of 16 November 2007, issue 509(30477).  It is known as The Prohibition of Mercenary Activities and Regulation of Certain Activities in Country of Armed Conflict Act, 2006.  Let us know if you would like to receive a copy of it – write to alana@afriforum.co.za.

READER’S REQUEST

Beryl Rathbone would still like to get in touch with people of 60 and over who are returning or have returned to SA after a long stay abroad.  Please let us know if you would like to share experiences with her.  Once again use our address please, alana@afriforum.co.za.

JOBS AVAILABLE

The following professionals are urgently required:

  • System Analyst / Bryanston / R15 000 (Negotiable)
    5 years experience, language: Progress
    NB. PLEASE PLACE POSITION APPLYING FOR IN SUBJECT LINE
    Send your CV to anne@dantesa-jhb.co.za.
  • Senior Piping Engineer / Woodmead / R500 000
    BSc Mech Degree, PR Eng, 10 years piping engineering experience
    NB. PLEASE PLACE POSITION APPLYING FOR IN SUBJECT LINE
    Send your CV to anne@dantesa-jhb.co.za.
  • Junior Piping Engineer / Woodmead / R300 000
    BSc Mech Degree, PR Eng, 5 years experience with some piping experience
    NB. PLEASE PLACE POSITION APPLYING FOR IN SUBJECT LINE
    Send your CV to anne@dantesa-jhb.co.za.
  • Mechanical Engineer / Woodmead / R300 000
    B Eng / BSc (Mech), 5 years project experience, diamond plant experience
    NB. PLEASE PLACE POSITION APPLYING FOR IN SUBJECT LINE
    Send your CV to anne@dantesa-jhb.co.za.
  • Senior Chemical Engineer / Woodmead / R400 000
    BSc Chem, 5 years hydro-metallurgical design and operational experience
    NB. PLEASE PLACE POSITION APPLYING FOR IN SUBJECT LINE
    Send your CV to anne@dantesa-jhb.co.za.
  • Analyst Developer / Bryanston / R360 000
    Language: Progress on GUI, to work for a blue-chip client
    NB. PLEASE PLACE POSITION APPLYING FOR IN SUBJECT LINE
    Send your CV to anne@dantesa-jhb.co.za.
  • Aluminium Draughtsman / Midrand / R120 000
    Aluminium extrusions experience
    NB. PLEASE PLACE POSITION APPLYING FOR IN SUBJECT LINE
    Send your CV to anne@dantesa-jhb.co.za.

ARE FLIGHT TICKETS TAX DEDUCTIBLE?

More and more South Africans are living abroad and have property in South Africa.  Many of these people decide to invest in property in South Africa and to have a holiday home in South Africa or start to buy a flat or more in South Africa as future pension income.

I have had numerous queries from expat who ask me if they could deduct their travel costs to South Africa.  The answer is “yes”, it is tax deductible if the travel cost is made in the production of income.  If you for example fly to SA to check on repairs, then it is a tax deductible expense.  What normally happens, is that you combine it with a holiday in South Africa.  The South African Revenue Services could therefore assess that only 50% of the ticket was in the production of income.

If you fly to South Africa to come and have a look at a few properties to buy, then your expense will be of a capital nature (and will decrease your capital gains tax liability on selling the property).  The same applies if you have a flat and your previous tenant has left and you are now doing repairs to the property before you let it out again or if you have just bought it and do repairs before you start to let it out.  The Receiver will deem the repairs as of a capital nature and also your travel costs.  The reason for this is because the expense was to get the flat ready to let it out (an expense in creating an income producing asset).  It might be a good idea if you come to South Africa to view more properties to buy, to keep the brochures of property that was given to you by estate agents and to keep their names.  Also keep any projections that was given to you regarding the feasibility of the project, how much the rental income in that area would be and how much the rates, insurance, repairs, etc. would cost you.  This will be of assistance if there are any queries from the Receiver.

These capital costs will be deductible in calculating your capital gains on selling the property.    Also any travel cost to South Africa to sell the property is of a capital nature and will decrease your capital gains tax liability.

Remember that you have to register in South Africa as a provisional taxpayer if your South African rental income is per year more than R12 000.

Please do not hesitate to contact me, Fanus Jonck, at tax@jonck.net should you have any further tax queries.

EMPLOYMENT!

Fanie Coetzee who represents one of the major construction companies in South Africa, is still looking for senior people in the fields of construction and engineering.  He is also willing to help people in other related fields to find employment as well.  Contact him at fanie@oneworldhc.com.

CONSIDERING A CAREER AS FINANCIAL ADVISOR?

Old Mutual Personal Financial Advice is looking for people to be trained as financial advisors.  The successful candidate will be:

  • A highly energetic person
  • 23 years or older
  • With Grade 12 or a higher qualification
  • Someone with their own transport, living in Pretoria or vicinity
  • Computer literate and able to work independently.

Remuneration = R6 000 + commission per month.  If you are interested, please send your CV to Jannie Heymans at jheymans@oldmutual.com.

HOME AVAILABLE

Michelé writes:  Are you looking to return home or sending your staff member out on contract to the Roodepoort / Honeydew area in South Africa?  For a long or short-term let, we have a secure detached corner duplex, 3 decent-sized bedroom townhouse, with 2 full bathrooms, one en-suite to main bedroom with balcony.  Lounge with open-plan dining room, lovely fitted kitchen, private garden including garden service, with additional side entrance to back, double garage with entry into house and carport space for an addition 2 cars, alarm system, electric fencing around complex, remote control access at entrance to complex.  Only 3 years old.  Rental negotiable to the right tenant.  Contact:  John (c): +27 (082) 4352381 in SA or Michelé (w) +944 (01452) 886227 or (h) +944 (01242) 232433 in UK.

NOSTALGIC MOMENTS

This month we are reminding you of the beauty of Cape Town ...


Elwin Wouterse sent us this photo of Lion’s Head.


Ronell Kruger visited Kirstenbosch recently.

Please send us you favourite photo of South Africa soon!

MEDITATION

This month’s meditation is an excerpt from the Bible diary Die Vrolike God by Barend Vos.  It is published by Lapa Publishers and can be ordered from www.lapa.co.za.

Read: Matthew 21:1-11 – The Entry into Jerusalem

Rather a strange picture in my opinion, this large man on a young donkey.  Uncomfortably large on the narrow back of the animal, his hands holding onto its neck, his feet touching the ground.  And the crowd welcoming this unusual rider and his unusual mount as if he were a king.

But he is a king!  Or at least a prince, the son of the greatest king of all – David.  Just see how the crowd rolls out the red carpet for him, how they take off their clothes, strip branches from trees and thereby demonstrate:  Here comes the new David!

Some people asked:  “Who is this man?”  The cheering crowd answered:  “It is the prophet ...!”

The son of David, the prophet.  Did they really know?  Did anybody know?

Who is this man?  What did he come and do in Jerusalem?  Why this strange entry into the city?  And why do the Bible translators use capital letters when referring to him?

Matthew says He is the fulfilment of Israel’s age-old expectation:  that a king will come from the descendants of David.  But, this Evangelist also adds that He is much more than this.  He is a capital letter King, the realisation of His people’s deepest desire.

The Son of David, yes, but above all the Son of God.  He is riding a donkey to confirm the age-old prophesies.  He comes to Jerusalem to proclaim his Kingship.  The crowds will recognise Him after all ...

Alas, I am not too sure that they really knew who He was.  In fact, I wonder whether they did not merely act as crows have done through the ages.  Caught up in the emotion of the moment, swept up by the growing noise, a whole city in turmoil.  And I even wonder whether this was not the very crowd that would soon jeer:  “Crucify Him!”  This is the way of crowds.

But the noise in no way hides the urgent question at the end of this tale.  Crowds and individuals of all times are still confronted by this question: “Who is this man?”  Or, to put it more accurately:  “Who is this man for you?  For you personally?”

Prayer:  “God, You are my King.  Whether I proclaim this with a crowd, or whisper is softly, please hear me!”

 

Easter greetings and kind regards till next time!

Alana & colleagues
AfriForum
[www.komhuistoe.co.za / alana@afriforum.co.za]