April 13, 2023

Flying towards a tax saving: Double Tax Agreement, or financial emigration?

Having visited over 12 international locations in 2022, and engaging with South African expatriates, we can attest to a recent report issued by the United Nations, which found that around 900 000 South Africans are already living and working overseas—and indeed, this may well be an understatement. The common misconception amongst expatriates, however, is that getting on a plane and leaving South Africa will trigger SARS to automatically regard them as non-resident taxpayers. This is certainly not the case, as the correct process must be followed to cease one’s South African tax residency status.  If not, SARS may audit the misinformed […]
March 4, 2020

Tax liability in financial emigration

Section 9H of the Income Tax Act deals with matters relating to the cessation of residency in South Africa. This section essentially states that where a person that is a resident ceases to be a resident during any year of assessment, that person must be treated as having disposed of his assets on the date immediately prior to ceasing his residency, and re-acquiring the same assets on a date immediately thereafter. This is referred to as a “deemed disposal”. Similarly, the year of assessment will be deemed to have ended immediately prior to the cessation and to have started on […]
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