To financially emigrate or not?

FINALLY an objective and informative article and not just more fear mongering by an "expert" who wants you to use their consulting firm to financially emigrate.
 
My problem with this whole thing is this ordinary resident test, it is not binary, which is frustrating for someone living overseas with no intention to return but has parents and property in ZA.
 
phiber said:
My problem with this whole thing is this ordinary resident test, it is not binary, which is frustrating for someone living overseas with no intention to return but has parents and property in ZA.
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Agreed, some of the tests are up for debate. However, I think family they are talking about would be wife/kids and not parents. But yes, ditch your SA property, they'll surely use that against you.
 
So if you're not an ordinary resident but spend more than 183 days in SA, you have to pay income tax in SA?
 
phiber said:
My problem with this whole thing is this ordinary resident test, it is not binary, which is frustrating for someone living overseas with no intention to return but has parents and property in ZA.
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What does this mean? I will be leaving late November and not come back except to visit folks once or twice a year. Does having parents here make me a SA resident?
 
reactor_sa said:
So if you're not an ordinary resident but spend more than 183 days in SA, you have to pay income tax in SA?
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Yup. Although it would’ve hard to not be an ordinary resident and spend that much time in SA.
 
Finally perhaps forumites & tax consultants can now stop pretending it means anything else.
 
reactor_sa said:
And how is SARS going to know where someone spends most of their time?
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If your tax residency status changes, they can ask for proof (passport stamps, flight confirmations etc).
 
reactor_sa said:
And how is SARS going to know where someone spends most of their time?
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I am sure there are ways, but regardless, I wouldn’t suggest tax evasion as a general strategy to lower one’s taxes.
 
We are flying to Canada on the 13th of August. From my understanding, if I stay in Canada until the 12th of July 2020, I would have been out of the country for a continious peiod of 330 days, and I then become a non-resident from the day of departure (13th August 2019) as long as I dont spend more than 90 days in RSA between 12 July 2020 and 28 Feb 2021. I will still he a resident for the 2020 tax year though but only till 13th Aug 2019 so will have to file a return with things proportionally allocated.

As from 13th August 2019 I will also not be ordinarily resident in SA, as my family are leaving with me, my job, my house, schools, church will be in Canada. I have sold everything in SA, no property, resigned my job here etc.

So, 2020 will be my last tax return. Until I either meet the ordinarily residency test (ie basically move everything back) or be present for at least 91 days in any year plus the 5 preceding years.
 
Stefanmuller said:
We are flying to Canada on the 13th of August. From my understanding, if I stay in Canada until the 12th of July 2020, I would have been out of the country for a continious peiod of 330 days, and I then become a non-resident from the day of departure (13th August 2019) as long as I dont spend more than 90 days in RSA between 12 July 2020 and 28 Feb 2021. I will still he a resident for the 2020 tax year though but only till 13th Aug 2019 so will have to file a return with things proportionally allocated.

As from 13th August 2019 I will also not be ordinarily resident in SA, as my family are leaving with me, my job, my house, schools, church will be in Canada. I have sold everything in SA, no property, resigned my job here etc.

So, 2020 will be my last tax return. Until I either meet the ordinarily residency test (ie basically move everything back) or be present for at least 91 days in any year plus the 5 preceding years.
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Technically, I believe that you are still supposed to submit returns. The language around this is very ambiguous, and I stopped submitting zero tax returns after a few years myself.
 
cguy said:
Technically, I believe that you are still supposed to submit returns. The language around this is very ambiguous, and I stopped submitting zero tax returns after a few years myself.
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Probably yes, I used "not filing a return" and "zero return" interchangeably. I would presume zero returns would be the safest bet.

I am not quite sure where the 330 days comes from, I got it from a SARS Practice Note. Has something to do with the 91 days but it doesnt add up to any of the numbers. I would have thought that as soon as I am out of the country for longer than 275days since the beginning of the year (lets say you emigrate on the 28th of Feb) you cannot be in RSA for at least 91 days in that tax year. From that you dont meet the 91 days requirement for that particular year so you are not tax resident for that year.
 
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cguy said:
Technically, I believe that you are still supposed to submit returns. The language around this is very ambiguous, and I stopped submitting zero tax returns after a few years myself.
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I submitted zero returns for about 3 years. Everytime I try and update my info, but come the next return season and they still have only have my old data from 2 employments ago. Now I just ignore it.
 
cguy said:
Technically, I believe that you are still supposed to submit returns. The language around this is very ambiguous, and I stopped submitting zero tax returns after a few years myself.
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Shouldn't an application made to the Reserve Bank? From the article:

"In order to financially emigrate, application is made to the Financial Surveillance Department of the SA Reserve Bank with proof of the right, either by foreign passport or an appropriate visa, to live in another country. "
 
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