South Africa’s expat tax is coming – and there’s only one way to legally avoid it

cguy

Executive Member
Joined
Jan 2, 2013
Messages
8,117
Yeah, but until you officially emigrated financially from SA.. they will try claim you are a tax resident.

This isn’t true. Their tax residency test is the same as always, which does not require FE, contrary to what most of the FE service providers are falsely claiming. I checked with my accountant, who checked with SARS - I have no taxes or returns due, since I have not been a tax resident for nearly 20 years.
 

ToxicBunny

Oi! Leave me out of this...
Joined
Apr 8, 2006
Messages
107,285
This isn’t true. Their tax residency test is the same as always, which does not require FE, contrary to what most of the FE service providers are falsely claiming. I checked with my accountant, who checked with SARS - I have no taxes or returns due, since I have not been a tax resident for nearly 20 years.
I was just going on the stories.... So happy to be wrong then
 

cguy

Executive Member
Joined
Jan 2, 2013
Messages
8,117
I was just going on the stories.... So happy to be wrong then

The stories are insane right now - so much misinformation. I really wish SARS would clear it up. You will notice that these articles say things like “FE is the only Formal way to change your status”. This isn’t really true. Rather it’s just the most certain way since the tax residency test is subjective, but the reality is that very few people are actually in any type of grey area.

If you’ve been out of the country for a year or two, and keep a house in SA where you stay 3-5 months of the year, while your country of residency hasn’t offered you permanent residency, and likely will not, there may be some concern. If you’ve gone off to a new country, got PR or citizenship, a house and only visit SA a week every year or two, the “final home after ones wanderings” test is not going to be SA.
 
Joined
Mar 6, 2004
Messages
39,182
This isn’t true. Their tax residency test is the same as always, which does not require FE, contrary to what most of the FE service providers are falsely claiming. I checked with my accountant, who checked with SARS - I have no taxes or returns due, since I have not been a tax resident for nearly 20 years.

What specifically is the tax resident test?

And yes I've noticed so much hype about it -- when you Google "financial emigration" (at least from SA), so many providers pop up. So much scare-mongering going on.
 

Milano

Honorary Master
Joined
Feb 7, 2004
Messages
16,752
Each expert called upon in these articles either marginally or fully contradicts the previous expert called upon. These articles are going to be released in even greater frequency as March 2020 draws closer. It can only be assumed that the confusion is highly profitable.
 
Joined
Mar 6, 2004
Messages
39,182
Top