If there is no contract, your status will default to being married in community, sharing an estate:
On your annual tax return, you have three options to choose from:
- Not married
- Married in community of property
- Married out of community of property
When you select in community of property you will need to add your spouse’s identity/passport number and income tax number. SARS will allocate 50% of your income to your spouse. As mentioned, this will exclude trade income (for example, your salary), but may include any investment income or capital gains transactions.
Factors that might have an impact as to how SARS will see your status:
- Not married, but in a permanent long-term relationship – This might default to being married in community of property
- Married overseas without a contract – This might default to being married in community of property
- Married within community of property but never declared this and never added your spouse’s details – This might lead to additional tax and penalties and interest
If you are unsure how your status will impact your tax situation, let us assist you. Contact Dale Petersen on 021 819 7802 or at email@example.com to connect with us.