GENERAL QUESTIONS ON DOUBLE TAX AGREEMENTS

I WORK IN SAUDI ARABIA BUT LIVE IN BAHRAIN, IS THERE A DTA WITH SAUDI ARABIA? SHOULD I FOLLOW ANY OTHER STEPS IN THIS CASE?
There is a DTA signed between South Africa and Saudi Arabia. However, the location of the employer does not play a significant role in determining where your tax residency falls. Our team of Attorneys and DTA Specialists would be able to assist you with determining where you would be considered a tax resident and whether the DTA is available, and if so, if it can be applied to your circumstances.

IS THERE DISPOSABLE/EXIT TAX UNDER THE DTA? IF SO, DOES IT OCCUR EVERY YEAR?
As making use of the DTA results in you temporarily ceasing tax residency, it will result in a deemed disposal which may trigger Capitals Gains Tax implications, or popularly known as an exit charge. The deemed disposal will take effect only in the first year in which you cease your tax residency by way of the DTA.

DO YOU NEED TO BE A TAXPAYER IN SAUDI ARABIA (ZERO TAX JURISDICTION) FOR THE DTA TO WORK?
It is a common misconception that the DTA will not be applicable if you are in a zero tax jurisdiction. Ability to claim DTA is not determined by whether you are paying taxes or not, but rather by whether you are considered a tax resident of the country in question.

IF I WORK IN A COUNTRY WHERE I DO NOT PAY TAX, CAN I STILL CLAIM THE DTA?
Yes, you still can. Ability to claim DTA is not determined by whether you are paying taxes or not, but rather by whether you are considered a tax resident of the country in question.

IS A TAX RETURN FROM SOUTH AFRICA SUFFICIENT PROOF FOR A DTA?
No, to claim DTA certain requirements and tests need to be fulfilled. Our team of Attorneys and DTA Specialists would be able to assist you with determining whether you qualify to make use of the DTA and what steps you would need to take to make use thereof.

DOES A DTA NEED TO BE APPLIED EVERY YEAR?
Yes, claiming DTA will needs to be done every year.

I AM RETURNING TO SOUTH AFRICA IN JULY 2020; DO I NEED TO OBTAIN A TAX RESIDENT CERTIFICATE FOR QATAR FOR THE CURRENT YEAR OR DO I NEED ONE FOR THE PREVIOUS 5 YEARS AS WELL?
Generally speaking, if you wish to claim DTA, it is highly recommended to obtain tax residency certificates in respect of all previous years that you have been living and working abroad.

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Kindly note that our offices are closed between 25 December 2024 and 1 January 2025 and as such there will be a delay in our normal expeditious response times. Our teams are taking a short festive season break and will address your query upon their return on Thursday, 2 January 2025.