Paypal and Absa Student Account. I'm writing some articles for a website, and they're paying me via paypal. Now for some unfathomable reason, I've read that I have to withdraw all paypal income into a South African bank account within 30 days for FICA purposes. I believe this is a general thing - that debit cards can't be connected to Paypal accounts at least in SA.
This would be to deposit money into my paypal account. However, I'm wanting to do the reverse. I'm needing to withdraw my earnings from paypal which, by the way, are not enough to be taxed by SA and put them into my ABSA student account.
Now I know you have to do this via an FNB online profile. My question is this: Will my student account, which uses a debit card, connect with the FNB online profile and actually receive the funds? Or will I get some form of error? I don't want to go into the bank to give documents for nothing.
I had a student account with a debit card with FNB and connected it to Paypal to make payments. Not sure if it will work to receive payments but can't see why not. I've read multiple times across the internet that you are meant to follow the 30 day rule. I just don't want to get locked or heavily fine for tax evasion Technically you still have to file a tax return. Yes even with the k exemption. It'll just end up saying you owe zero. How does it make sense that I have to fill in a tax return form?
I'm not doubting you; it just sounds bizarre. Nonetheless, I'm covered from all legal stuff outside of tax return form stuff if I sort out the FNB middle-man account I've outlined, right? You should be covered for everything else as long as you make sure your proper details are on your FNB profile and you cite the proper code when withdrawing the cash.
Note that you need to withdraw all cash within 30 days of receipt per exchange control laws. You also have to acknowledge that you have adequate documentation covering the reason for payment. Also note that you cannot purchase things directly from your PayPal account in theory - you're supposed to withdraw it, put it back in and then do it uh As for tax returns, the minimum threshold for submitting tax returns only applies to people who have one salary cheque i. If you have multiple sources of income or other sources such as rent, trade, etc.
Whether or not people do is another thing. Frankly, I can't see how it makes sense for SARS to do the admin for every occasional freelancer, market stall owner or car wash guy, but hey, I didn't make the rules. So to sift through the legal mumbo jumbo, if I don't earn money outside of this writing income, I don't have to submit a tax return?
To sift through it, if your employer provides you with an IRP5 at the end of the year and it is your only source of income, you do not have to submit a tax return. In that event, documentation would probably be either the contract if you work on some form of fixed remuneration basis or invoices if you don't. On the occasions that SARS has asked me for documentation they are not interested in the contract but in my invoices.
You shouldn't need your contractual documentation to set up PayPal, but you are required to acknowledge for SARB every time that you withdraw funds that you are actually in possession of those documents. At some point FNB was the only bank that could receive paypal funds. Like your own personal swiss bank account in your pocket. Converting to Rands might be an issue, but I think you can do it on localbitcoins.
I'll look into that other idea. Close but no cigar. Its in the exchange control act, not FICA. Chances are nothing will happen if you don't though. Yeah otherwise should be fine. Adequate documentation is covered by a contract signed with my employer, correct?
I'll hopefully go in tomorrow with required documents and set it up.More...