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South African Tax Residency
South African tax residents are liable to tax on their world-wide income from 1st October 2001. It is therefore important to confirm your correct residency status while you are working abroad so that you do not face tax back home.
While the UK-South Africa Double Tax Treaty aims to eliminate double tax, there are a wide range of situations that will cause increased tax should you be considered dual resident of the UK and South Africa.
The most important test of residency for South Africans abroad is the ‘ordinarily resident’ test.
A person is ‘ordinarily resident’ in South Africa if it is “the country to which an individual would naturally return from his/her wanderings.”
A person who is ‘ordinarily resident’ in South Africa is always resident for tax purposes, even if the person does not pass the “physical presence” test.
Note that South Africa also now has a capital gains tax, which includes foreign gains made by residents.
The recent amnesty to declare foreign income and assets for exchange control and tax purposes has now passed.
For more information please go to www.sars.gov.za or contact one of our advisors. |
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Dynamic Management Solutions Limited is a company registered in England and Wales with company number 3652783
and whose business address and registered office is 8 Quarles Park Road, Chadwell Heath, Essex RM6 4DE
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