+- South Africa Info Forums (https://globalbuzz-sa.com/forums)
+-- Forum: Business and Finance (https://globalbuzz-sa.com/forums/Forum-Business-and-Finance)
+--- Forum: Member and SAffer owned businesses (https://globalbuzz-sa.com/forums/Forum-Member-and-SAffer-owned-businesses)
+--- Thread: European Directive on Tax on Savings, Dividends etc... (/Thread-European-Directive-on-Tax-on-Savings-Dividends-etc)
European Directive on Tax on Savings, Dividends etc... - Ray - 01-12-2005
The Directive has been implemented , as from 1. July 2005 ;
it targets ALL expatriates with interest-bearing bank accounts anywhere
in the EU-land , as well as in Switzerland, Liechtenstein , Monaco , Andorra , Channel Islands , Isle of Man and other cooperating jurisdictions ;
the tax ( disclosed and/or deducted ) is currently 15% , raising to 20% in 2008 and then to 35% ( THIRTY-FIVE PERCENT ) from 2011 !
In addition , the U.S. banks also deduct tax , at rates of anything between 15 and 30 percent p.a. ) if the expat has an address in the EU or any of above jurisdictions , or any others with which US has bilateral interest-taxation agreements.
There are ways and means now available , though , to legally avoid having to suffer this tax.
My firm has assisted many South Africans
( and other expatriates : Brits , Skandies , Germans etc. )
to protect and enhance their financial position and circumstances...
European Directive on Tax on Savings, Dividends etc... - mcamp999 - 01-12-2005
Ray
I fail to see how they are going to implement this, particularly in the various offshore havens such as the Isle of Man etc.
You will only become liable for a tax if you cash in on those savings whilst still resident in an EU country.
There are many tricks to doing this, and I would hope that people with offshore investments are astute enought to know how to go about this.
I reckon they will be kept chasing their tails, unless the offshore havens are forced to change their rules of disclosure!!
What do you think?
European Directive on Tax on Savings, Dividends etc... - Ray - 02-12-2005
If you really want to make 100% sure of this , do look it up : on Google or similar ; every last bank in Channel Islands , Isle of Man , Switzerland etc. has long ago already written to everyone of their customers ( those with an EU address ) about disclosure or deduction of tax on interest , dividends etc...
Whilst , as for the U.S. banks , they don't even write to the customer , but rather just deduct the applicable percentage : straight off the receipts into any non-resident's A/c.
( E.g. A South African , resident address in Dubai , would have 30% taken off all interest , dividends , yields etc ...same with a Brit , retired in Croatia etc etc )
Stealth taxation ? You bet!
So , rather than querying the existence/correctness of it , the time is now to join in the just and right guerilla-warfare , to protect and enhance one's own financial resources!
European Directive on Tax on Savings, Dividends etc... - mcamp999 - 02-12-2005
Ray Wrote:If you really want to make 100% sure of this , do look it up : on Google or similar ; every last bank in Channel Islands , Isle of Man , Switzerland etc. has long ago already written to everyone of their customers ( those with an EU address ) about disclosure or deduction of tax on interest , dividends etc...
Whilst , as for the U.S. banks , they don't even write to the customer , but rather just deduct the applicable percentage : straight off the receipts into any non-resident's A/c.
( E.g. A South African , resident address in Dubai , would have 30% taken off all interest , dividends , yields etc ...same with a Brit , retired in Croatia etc etc )
Stealth taxation ? You bet!
So , rather than querying the existence/correctness of it , the time is now to join in the just and right guerilla-warfare , to protect and enhance one's own financial resources!
Ray
I am not for a moment questioning the existence of it at all, I am wondering how enforceable it will be, that is all.
I was not aware of the channel islands and or the the isle of man signing up to this. Do you have any source reference for this, as I need this info for myself.
I knew that legislation was coming in, but did not realise how far reaching it would be.
Also, how does it effect double taxation agreements etc. ?
European Directive on Tax on Savings, Dividends etc... - Ray - 02-12-2005
Geen Problem Nie!
To get it from the horse's mouth :
go to Google , ask :
European Directive Tax Interest ,
on the page that displays next :
3rd from the top should be the IoM Gov't official version ,
7th : quite a good explanation ,
8th : Abbey Int'l on Jersey and Guernsey ( signatories )
9th : The Int'l Tax Review summary etc etc
Happy reading !
Of course , if you were to tell your banks that you are resident in RSA and prove it by fresh utility bills etc , then you'd be exempt , for now anyway ! But then , all your banking correspondence will go to RSA address , too!!!
About double taxation agreements ?
To the best of my humble knowledge , this new tax has no impact on any other taxation agreements , as it only affects expats resident in EU-land & certain co-signatory-countries.
European Directive on Tax on Savings, Dividends etc... - mcamp999 - 02-12-2005
Thanks Ray, will do some reading up on the matter
European Directive on Tax on Savings, Dividends etc... - spam - 05-12-2005
This has been on the cards for a while....simply put, tax havens now cease to exist.
Banks have two options......
One notify the country of the account holders permanent address what interest has been paid...
Or withhold account details but deduct tax and fork it over.
All EU countries must comply and many other countries are going to anyway.
If you are an account holder you will have already been informed of the bank you have your account with and notified which process they intend to follow.
The onus to be honest or not no longer rests with you, the banks are obliged to disclose!
European Directive on Tax on Savings, Dividends etc... - Ray - 10-12-2005
...correct ! Then : your new tax gets either deducted by your bank ( they have cash incentive , to do so! ) or your gains get disclosed to the taxman of the country in which you currently reside , so that you can get taxed on the ( higher ) margin still !!!;
please , note : that no-one ever even asks or consults you e.g. how you might like the monies they just grabbed off you , to be invested or spent !
All this , after they already took off you : income tax , community tax-es , road tax , VAT, taxes on petrol and wine and flights and what-not ...
So , maybe the wise-r ones among us agree that enogh is enough , and that a bank is no place to keep your savings , or build-up new ones , any longer ?