The Importance of a Tax Diagnostic Report for South African Expatriates

The Tax Diagnostic process entails a non-invasive review of a taxpayers eFiling profile, through investigating the records held by SARS. This information is then compared with the taxpayer’s unique circumstance to determine if there are any discrepancies between the SARS records and current circumstance.

Alex Mahundla

SARS Tax Compliance Specialist

Chrispos Seete

SARS Process Administrator Expatriate Tax

Thereby allowing for tax planning and road mapping prior to SARS engagement as to mitigate risk for the taxpayer on future engagement with SARS.

Why is the Tax Diagnostic Report Advisable?

Assessment of Historical Compliance: The review allows for an accurate assessment of historical compliance, aligning past practices with current tax regulations accepted by SARS.
Risk Mitigation: Identifying potential issues in advance enables the mitigation of risks associated with changes in tax residency status, crucial for those using the Double Taxation Agreements (“DTA”) deeming principles, undergoing financial emigration or intending to cease tax residency. As well as those seeking to ensure compliance in terms of resident expatriate tax laws and exemptions.
CIPC Status Check: Conducting a background check on the CIPC status ensures a comprehensive evaluation of any company links within South Africa, a critical step for expatriates considering tax residency cessation.

Deemed CGT Review:

The Tax Diagnostic process includes a detailed examination of the taxpayer’s asset portfolio to determine the likelihood of deemed Capital Gains Tax implications. This is particularly pertinent to those seeking to formally cease residency or deem non-residency to a foreign jurisdiction. As both cessation routes would require the taxpayer to meet the obligations of section 9H, which requires a deemed sale of all capital assets. As such, where a taxpayer has these potential for exposure this is flagged, and a computation engaged upon to determine the potential liability of cessation.

The Importance of Updated Personal Details on SARS eFiling:

SARS has more actively highlighted the importance for taxpayers to keep their registered particulars up to date. Furthermore, in terms of Section 23 of the Tax Administration Act (“TAA”), an individual must within 21 business days, notify SARS when their registered particulars have changed. This is to ensure the below is achieved with the revenue authority:

Effective Communication: Accurate contact information ensures that expatriates receive critical updates, notifications, and deadlines from SARS, facilitating effective communication.
Timely Access to Tax Records: Up-to-date personal details enable seamless access to tax records on the eFiling platform, essential for reviewing past submissions and preparing for future tax obligations.
Security and Identity Verification: Keeping personal details current enhances the security of eFiling accounts, protecting against unauthorized access and fraudulent activity.
Efficient Correspondence Handling: Updated contact information allows SARS to efficiently handle correspondence, including digital notices, requests for documentation, and other communications.
Compliance with Legal Requirements: Providing accurate and up-to-date information is a legal requirement, ensuring compliance with tax authorities and avoiding penalties or consequences.

The Tax Diagnostic Report is therefore a valuable tool for expatriates in providing a roadmap to assess and optimize tax compliance. The initial focus allows for peace of mind on historic compliance to ensure any potential hurdles are ironed out. Whereafter, the correct tax optimisation steps can be undertaken to ensure continued compliance, especially in the depths of complex expatriate tax regulations and laws.

Contact us

Full Name*
Email Address*
Contact Number*
Subject*
I need assistance with (Tax Legal)*
I need assistance with (Accounting)*
I need assistance with (Remuneration)*
I need assistance with (Expat Tax)*
I need assistance with (Local & Global Work Permits)*
How many years have you been outside of South Africa? (required)*
Is It Your Permanent Intention To Remain Abroad?*
Category of Taxpayer*
Do you have any forms of income besides your employment income?*
Do you have any forms of income besides your employment income?*
Did you receive other worldwide income?*
How many years have you been outside of South Africa?*
Is it your permanent intention to remain abroad?*
Did you receive/make a contribution towards? (required)*
- Travel Allowance
- Retirement Annuity
- Medical Aid
- None
Did you receive/make a contribution towards? (required)*
- Travel Allowance
- Retirement Annuity
- Medical Aid
- None
Do you have access to your own efiling profile?*
Do you have access to your own efiling profile?*
Do you have access to your own efiling profile?*
Where did you hear about us?*
Message*
CAPTCHA
Name
This field is for validation purposes and should be left unchanged.

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.

The Importance of a Tax Diagnostic Report for South African Expatriates

Why is the Tax Diagnostic Report Advisable?

Deemed CGT Review:

The Importance of Updated Personal Details on SARS eFiling:

Share to your social feed

Contact us