From 8 May, non-residents of Australia will no longer enjoy the 50% discount on capital gain tax
related to real estate and mining assets.
Capital gain tax
applies to the difference between the sales price and the price at which a property was purchased, when it's sold, says Emirates 247
And from 1 July, the tax
rate on capital gain for non-residents will be adjusted to make way for an increase to 33% from 1 July 2015.
This is proof that Australia has one of the highest capital gain tax
rates around the world, and it's one of the few countries to set different conditions for non-residents.
Meet your obligations as a tax payer by keeping an up-to-date asset register!
You have a host of non-compliance penalties and the threat of sanctions to worry about, says Stiaan Klue, Chief Executive of the South African Institute of Tax Practitioners (SAIT) on Bizcommunity
'Virtually every taxpayer will at least sometime in his lifetime commit a tax
offence,' explains Klue.
It could be as simple as failing to keep proper tax
records for the required five year period SARS stipulates.
Just remember that it's not just the sale of a property that opens you up to capital gains tax
Most capital assets are subject to capital gains tax
– even shares, unit trusts, private investments and second-hand policies.
So you'll have to include all of these in your asset register to ensure you mention all asset sales to SARS, says FSP Business
This way, you'll have up-to-date records, and you won't have to resort to excuses like 'I didn't know capital gains tax
applied to that' or 'I forgot to tell you I sold it as it was such a small asset' if SARS shows up for a tax audit
It's the easiest way to remember to pay your capital gains tax
correctly and save yourself from penalties of up to 200% from SARS!