south_africa:tax_laws_for_south_african_expats
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| south_africa:tax_laws_for_south_african_expats [2020/04/24 09:49] – created peter | south_africa:tax_laws_for_south_african_expats [2020/07/15 09:30] (current) – external edit 127.0.0.1 | ||
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| ====== South Africa - Tax laws for South African expats ====== | ====== South Africa - Tax laws for South African expats ====== | ||
| - | Finance Minister Tito Mboweni in this week’s | + | Finance Minister Tito Mboweni in Feb 2020 Budget Speech announced that the exemption threshold on foreign employment income earned by South African taxpayers will be lifted from R1 million to R1.25 million. |
| This new tax, dubbed the “expat tax” comes into effect from 1 March 2020. | This new tax, dubbed the “expat tax” comes into effect from 1 March 2020. | ||
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| This legislative change, along with the negative sentiment prevalent in our country at the moment, has led to an uptick in the number of South Africans considering formal or financial emigration. | This legislative change, along with the negative sentiment prevalent in our country at the moment, has led to an uptick in the number of South Africans considering formal or financial emigration. | ||
| - | “If you find yourself in this situation, it is important to distil | + | “If you find yourself in this situation, it is important to distill |
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| ===== Understanding the way forward ===== | ===== Understanding the way forward ===== | ||
| - | Allan Gray stressed that there is no one-size-fits-all solution when considering what you should do. It has therefore listed several key questions to ask in determining whether this tax amendment impacts you: | + | Allan Gray stressed that there is no one-size-fits-all solution when considering what you should do. It has therefore listed several key questions to ask in determining whether this tax amendment impacts you: |
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| You are a tax resident in South Africa if either of the following tests applies to you: | You are a tax resident in South Africa if either of the following tests applies to you: | ||
| - | * You are “ordinarily resident” in South Africa (see more detail below); or | + | * You are **ordinarily resident** in South Africa (see more detail below); or |
| - | * You are not ordinarily resident in South Africa in a specific tax year, but you meet the requirements of the “physical presence” test. | + | * You are not ordinarily resident in South Africa in a specific tax year, but you meet the requirements of the **physical presence** test. |
| You are “ordinarily” resident in South Africa, and therefore a tax resident, if you consider South Africa your real home and you intend to return. | You are “ordinarily” resident in South Africa, and therefore a tax resident, if you consider South Africa your real home and you intend to return. | ||
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| You stop being a South African tax resident when: | You stop being a South African tax resident when: | ||
| - | * You are no longer ordinarily resident in South Africa (i.e. you state that you want to become ordinarily resident in another country and you take steps that confirm your stated intention). | + | * You are no longer ordinarily resident in South Africa (i.e. **you state that you want to become ordinarily resident in another country and you take steps that confirm your stated intention**). |
| - | * You are not a tax resident according to the physical presence test (i.e. you leave South Africa and stay physically outside of the country for a continuous period of at least 330 full days). | + | * You are not a tax resident according to the physical presence test (i.e. **you leave South Africa and stay physically outside of the country for a continuous period of at least 330 full days**). |
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| ===== 5. Do I need to notify SARS if I cease to be a South African tax resident, and if so, how? ===== | ===== 5. Do I need to notify SARS if I cease to be a South African tax resident, and if so, how? ===== | ||
| - | You need to notify SARS when you cease to be tax resident in South Africa, otherwise you may still be seen as a tax resident in their eyes. | + | **You need to notify SARS when you cease to be tax resident in South Africa, otherwise you may still be seen as a tax resident in their eyes**. |
| If your tax residency changed in the current tax year, you can answer the relevant question via the wizard on your income tax return to indicate you have “ceased to be a tax resident”. | If your tax residency changed in the current tax year, you can answer the relevant question via the wizard on your income tax return to indicate you have “ceased to be a tax resident”. | ||
south_africa/tax_laws_for_south_african_expats.1587721799.txt.gz · Last modified: 2020/07/15 09:30 (external edit)