SA Citizenship

[Bren67]

Hi

If I renounce my SA Citizenship and take up residency and citizenship in Asia but if I travel to SA on a tourist visa for 95 days would/could I be considered as a SA resident and be liable for SA tax ? I obviously would not derive any income in SA but in Asia.

I read on SARS : http://www.sars.gov.za/ClientSegmen...ages/Tax-and-Non-Residents/Pages/default.aspx

that :

To meet the requirements of the physical presence test, that individual must be physically present in South Africa for a period or periods exceeding –

• 91 days in total during the year of assessment under consideration;
• 91 days in total during each of the five years of assessment preceding the year of assessment under consideration; and
• 915 days in total during those five preceding years of assessment.

An individual who fails to meet any one of these three requirements will not satisfy the physical presence test. In addition, any individual who meets the physical presence test, but is outside South Africa for a continuous period of at least 330 full days, will not be regarded as a resident from the day on which that individual ceased to be physically present.

On the above I could typically meet these requirements but if I am here on a tourist visa with no income derived in the country not been a SA citizen or resident how would that work ?

 

[AdrianH]

If you are going to get citizenship in another country, I would keep my SA citizenship and apply for financial immigration. Basically you get to keep your citizenship while informing SARS and SARB you will no longer earning income in SA. May or may not fit your needs.

 

[krycor]

If you are going to get citizenship in another country, I would keep my SA citizenship and apply for financial immigration. Basically you get to keep your citizenship while informing SARS and SARB you will no longer earning income in SA. May or may not fit your needs.

This.. the old way of just no longer being present has a lot of ‘interpretation’ errors which may cause issues wrt tax especially for countries with no/little tax and SARS/SA short of cash.

By doing financial immigration you no longer a tax resident in SA and this can be done regardless of gaining citizenship elsewhere but rather being a tax resident elsewhere and paying their tax (which even includes paying it on money made in SA if you have property u leasing btw pending tax laws of country eg US has global income law)

 

[Bren67]

If you are going to get citizenship in another country, I would keep my SA citizenship and apply for financial immigration. Basically you get to keep your citizenship while informing SARS and SARB you will no longer earning income in SA. May or may not fit your needs.

Thks for your reply and advice AdrianH, what would be the benefits of keeping SA citizenship as country I am considering to take up citizenship does not allow duel citizenship and I am only seeing downside of keeping SA citizenship as if I am travelling here frequently on a tourist visa it could open up some grey areas of residence potentially for SARS. However if I am 100% cut all ties with SA both from a residency, citizenship and tax as I am understanding I would have no SA tax liability. SA is typically a "C passport" country territory, not much visa free travel possibilities, yes its the country of my birth but been a citizen and resident seems like it has become a burden on me or am I missing something ?

 

[AdrianH]

@brennancarey

I am no expert by any means, I have just started the immigration process myself so I was reading up on financial immigration. I was born in UK but been in SA almost my whole life, I have dual citizenship. For me, I would want to come back periodically for holidays and visit friends and family, and not have to worry about VISAs and tax, so financial immigration is the way to go for me. Also, I am hoping that in the future the country sorts all the BS out because then I would come back to live.p It may sound cheesy, I am proudly south African and I do want to keep my citizenship.

I mentioned in the other thread, SA is the best country to live in, it's the people I have issues with.

 

[Bren67]

This.. the old way of just no longer being present has a lot of ‘interpretation’ errors which may cause issues wrt tax especially for countries with no/little tax and SARS/SA short of cash.

By doing financial immigration you no longer a tax resident in SA and this can be done regardless of gaining citizenship elsewhere but rather being a tax resident elsewhere and paying their tax (which even includes paying it on money made in SA if you have property u leasing btw pending tax laws of country eg US has global income law)

Hi krycor, than you for your reply. I think the "old way of not been present" is not what I am trying to achieve as I am looking to renounce my citizenship and ties with SA. However I may still need to visit SA and potentially a great place for a tourist or extended holidays..

Yes all 1st world countries ie "A Passport countries" have word wide tax systems with the USA being the worst in that being a citizen subjects you to their tax laws no matter where you take permanent residence. UK, Australia, NZ all A passport countries that have world wide tax implications There are some benefits however been a citizen of any of those countries. However I am struggling to see how been a citizen of SA has any benefits for me.

The country I am considering to immigrate to has a territorial tax system so I would be liable for income earned in said country but is a requirement that I give up any other citizenships. Its a Asian country and typically a B passport country which would allow me visa free travel into Schengen areas of Europe, SA and many other countries vs SA my passport. My business is not SA based and is moving offshore so why would I want to be burdened with a SA citizenship, residency and SARS if I am not planning to earn any income here ?

 

[Bren67]

@bren67


I am no expert by any means, I have just started the immigration process myself so I was reading up on financial immigration. I was born in UK but been in SA almost my whole life, I have dual citizenship. For me, I would want to come back periodically for holidays and visit friends and family, and not have to worry about VISAs and tax, so financial immigration is the way to go for me. Also, I am hoping that in the future the country sorts all the BS out because then I would come back to live.p It may sound cheesy, I am proudly south African and I do want to keep my citizenship.

I mentioned in the other thread, SA is the best country to live in, it's the people I have issues with.

I hear you... for many of us it is the country of our birth by default, sometimes you have to be true to yourself and say what is the country doing for me and to be fair its very little at the moment. If I renounce I can still come here on holiday visa free for 90 days at a time, claim the 15% VAT back when I leave... ! and have a citizenship in a country that offers me medical benefits, schooling, and infrastructure that works and I can see where my tax money is going to.

 

[SweetFennyAdams]

I hear you... for many of us it is the country of our birth by default, sometimes you have to be true to yourself and say what is the country doing for me and to be fair its very little at the moment. If I renounce I can still come here on holiday visa free for 90 days at a time, claim the 15% VAT back when I leave... ! and have a citizenship in a country that offers me medical benefits, schooling, and infrastructure that works and I can see where my tax money is going to.

this

 

[Bren67]

sorry I think you did not complete your post ?