SARS is sending this letter to people who leave South Africa – what you should know

[BusinessTech]

SARS is sending this letter to people who leave South Africa – what you should know

SARS is now officially issuing a confirmation of tax non-residency letters to people permanently leaving the country, says specialist advisory firm Tax Consulting SA.

 

[My_King]

Wat wil kiesetter nou weer sy bek oor rek?

 

[RedViking]

Every year.

 

[rvZA]

“The SARS non-resident tax status confirmation letter is a letter confirming that one has ceased to be a tax resident of South Africa with an indication of the effective date tax residency was ceased.

As a tax resident in South Africa, you are legally required to submit tax returns to SARS every year and declare your worldwide earnings (local and foreign) and then claim any exemptions or tax credits on the foreign earnings.

“Even if you have broken our tax residency tests – being the ordinary residence test and physical presence test – or there is a Double Taxation Treaty in place, these factors are not going to automatically change your status to tax non-resident. The only way to change your tax status is to formally undergo the relevant legal processes through SARS.”

So, without this letter, they will still legally consider you as a taxpayer in South Africa, no matter how long you have been out of the country or you comply with the tax-residency definition, you will be subject to double taxation treaties and just build up your tax debt until they one day prosecute you for tax evasion.

I suppose it will not be easy or cheap to get this letter.