Category: General | Tax2024 Taxresidency Taxstatus SARS
The determination of whether an individual ceases to be a tax resident in South Africa is based on the way such individual has been a tax resident in South Africa. If the taxpayer has been an ordinarily tax resident, it is a factual enquiry on whether that person’s subjective intention to cease to be ordinarily resident in South Africa and no longer make South Africa his or her real home, is supported by various objective factors. If a person has ceased to be an ordinarily tax resident, it will be from the day such person ceased his or her residence.
Some factors to be determined whether a taxpayer has ceased to be a tax resident of South Africa:
• The type of visa on which you have gone to the foreign country.
• Proof of permanent residence in the foreign country (if applicable).
• A certificate of tax residence from the foreign revenue authority or a letter from the authority that indicates that you are regarded as a tax resident in that country (if available).
• Details of any property that you may still have available in South Africa. Indicate the purpose for which such property is being used.
• Details of any business interest (e.g. investment and employment) that you may still have in South Africa.
• Details of your family. Indicate whether any family members are in South Africa and the reasons therefor.
• Details of your social interests (e.g. gym contract, recreational clubs and societies) and location of your personal belongings.
• Details of any return visits to South Africa, their frequency and the reason for undertaking such visits.
How to declare to SARS that you have ceased to be a tax resident in South Africa:
If you have ceased to be a tax resident of South Africa, you would need to inform SARS through the Registration, Amendments and Verification Form (RAV01) on eFiling by capturing the date on which you ceased to be a tax resident under the Income Tax Liability Details section.
Once you have applied you will be prompted to upload your supporting documents depending on your qualifying bases. Please use the link below to for more information
https://www.sars.gov.za/individuals/cease-to-be-a-resident/
What are the consequences if I have ceased to be a tax resident:
A deemed disposal for capital gains tax purposes takes place at the time when an individual breaks his or her tax residence. The individual will be deemed to have disposed of his or her worldwide assets, excluding immovable property situated in South Africa.
Once a person has ceased to be a tax resident in South Africa, such person is no longer taxed in South Africa on his or her worldwide income, but only on South African sourced income. Consult your tax advisor for assistance in determining your tax status as exit charges might be payable. At Tax A Sured Pty Ltd we specialize in change of tax residency and determining your tax status.
