There are some important facts that you need to know and understand when it comes to your situation as a seafarer. These are often easily misunderstood or missed completely. With the upcoming change in Taxation laws fear mongering is rife, we are here to set the record straight and help you navigate it all in the best way possible.
The Basics
Here are the important and detailed explanation of the basics, remember we are here to help you through the below as each individual has different needs.
The tax exemption on your earnings and benefits provided on the vessel, including South Africa and many other countries, only applies where you can evidence (provide proof of) an employer / employee relationship. Whilst there are different tax rules for workers who are part of the passage of the vessel and those who perform other work on the vessel, the employment requirement remains critical for both these tax exemptions. There are different rules for crew working on luxury yachts, to entertainment or salon crew on cruise ships, to other operational crew, and we know them!
Where do you fit in?
The following are important concepts to ensure tax compliance –
How can we help you?
Employment
We will employ you legally for a fixed term, whilst you will maintain the freedom of choice on your work arrangement. After our tax diagnostic, we will confirm the rules applicable to you to ensure a guaranteed tax-exempt status where you keep to the rules and your tax return is done on a first-time accurate basis. Our preferred tax provider provides a similar guarantee on SARS correctly tax assessed position as a zero tax filing
Monthly payslips and annual consolidated earnings
This means you will have a credit score! A very important part of being able to do anything from getting a home loan to taking out a cell phone contract. The benefits of having employer earnings and being able to provide this in a consolidated manner is well known. Your credit score and financial risk profile are determined with reference to your payslip and your earnings thereon.
Offshore and local banking solutions
Customer History with your bank
The fact of employment provides you access to better banking solutions, especially for offshore bank accounts. Whilst you are not tied to our preferred providers with long established relationships, the savings generally speak for itself, especially where you earn more.
Forex
A key focus of our service here is the limitation of bank costs, which, other than what the uninformed thinks, does not pertain to bank charges. The largest financial loss you can suffer other than a correct tax setup, is an inefficient bank forex arrangement. This is where the international banking system makes money by applying a different exchange rate than the true exchange rate between currencies. We have the setup in place to give you flexibility on transfers, thus not only correct timing of currency conversions, but also securing the best rates possible.
Advice
We also provide specialist guidance and solutions on when you are bringing savings to South Africa, such as for buying a property in South Africa, withdrawing past retirement savings from South Africa or any other transaction where money transfers are involved.
Career history and professional reference
Access to unlimited professional references and have a singular port of call for your career history, skill set and qualifications.
Access to credit, financial products and home loans
Most financial products are only accessible, or otherwise achievable with competitive rates, where you can prove employment. This is achievable by the product provider being allowed to make deductions from your payslip.
Depending on you and your personal priorities. It may be as simple as a having a funeral cover policy for family back home, offshore life and disability insurance or getting a home loan.
* Having employment and payslip history is very important if you want to buy any property in South Africa with a home loan.
Company status is preferred by certain employers
This will make you a first choice on certain types of independent contractor work. Also, our solutions support, never compromise, where your client or offshore employer, wants to contract on their own standard terms and conditions of engagement.
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