South Africa is a tax resident system. Tax residents of South Africa are taxed on worldwide income and South African sourced income. With the full foreign income exemption being capped in March 2020, it is more important than ever for expats, with a permanent intent to reside abroad, to formally cease their residency.
Tax Consulting South Africa recently deployed a team on a week-long fact-finding mission to the Crown Dependencies, specifically Jersey and Guernsey.
The South African Reserve Bank (SARB) may no longer be a visible part of the process to cease residency in South Africa. However, when it comes to moving money out of the country during or after emigration, the Reserve Bank is still very much involved. This is especially true for amounts above R10 million.
The 2023 Budget Speech was delivered by a light-hearted Finance Minister, Enoch Godongwana, with an overarching theme of “repair and maintenance”. A plan to reduce the fiscal deficit, whilst maintaining expenditure on social and infrastructure development was presented. This would be achieved without increasing taxes, as the fiscus was bolstered by strong increases in revenue […]
South Africans living abroad need to be mindful of the impact that this has on their tax obligations and ultimately, which country has a taxing right. Your tax obligation ultimately depends on your tax residency status.
On 22 February, the Minister of Finance, Enoch Godongwana, had the unenviable task of delivering the annual Budget Speech. Over the last year, and especially over the last few months, South Africa has taken one knock after another. Ears everywhere were on the ground, listening to what the plan is for South Africa Inc over […]
With the 2023 Annual Budget Speech around the corner, Commissioner of the South African Revenue Service (“SARS”), Edward Kieswetter, has been quite vocal in stating there will be no increase in current tax rates, nor the imposition of any further taxes, including a “wealth tax” as alluded to in last year’s address.
There may be a strange game of chess being played with taxpayers who are trying to cease their South African tax residency, with the result of keeping them “trapped” as tax residents for no legitimate reason.
In the midst of growing international restrictions on foreign property investors, South Africa remains a welcoming haven to these buyers.
A word of warning to all “finance professionals”, including tax practitioners, accountants, and specialist attorneys – Professional Indemnity Insurance can only cover you to a certain extent, and that does not include evading jail-time should the South African Revenue Service (“SARS”) deem fit.