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IOL: Foreign trust beneficiaries – beware the tax considerations

Over the years, several South African trust beneficiaries ceased to be South African tax residents, and others never were. Many South African families also created international structures as part of their estate plans. SARS had to adapt its taxation laws to accommodate these changing circumstances to collect taxes efficiently. Especially since March 2019, significant changes were made to the Income Tax Act relating to the taxation of income and capital gains earned by foreign resident trusts, foreign companies held by foreign resident trusts, distributions made to foreign resident beneficiaries from both South African and foreign resident trusts, and distributions made to South African resident beneficiaries from foreign resident trusts.

Phia van der Spuy gives an overview to guide you around these complex taxation matters.

Read here.

Phia van der Spuy is a Chartered Accountant with a Masters degree in tax and a registered Fiduciary Practitioner of South Africa®, a Chartered Tax Adviser, a Trust and Estate Practitioner (TEP), and the founder of Trusteeze®, the provider of a digital trust solution.

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