Some interesting tax facts that may cause panic!
Time clean up and tidy up your #SARSCompliance and file the February 2019 tax return.
Not tax registered? Follow this link to register or call on us, and we can assist.
If you cannot be registered through your employer you will need to visit a SARS branch to register.
Don’t know your number? Time to call SARS as they will assist based on your SA ID number.
Here is some interesting fact which tax resident Expat #Saffas need to consider:
Ensure SARS knows and confirmed you are tax non-resident. It is not good enough to be tax deregistered and there is no comfort in a dated tax clearance or tax good standing certificate. Assuming you have not notified SARS that you are tax non-resident, herewith then some interesting facts:
- You earned remuneration for foreign services rendered, and then the following rules applies:
- You are obliged to file or submit a return for the 2019 year of assessment, despite your income being below R500 000.
- If your employer is NOT tax registered with SARS (i.e. you did not receive an IRP5 or IT3) you are deemed to be a provisional taxpayer and you need to also file the IRP6 forms for August 2018 and February 2019
- It follows that if you sold an asset, where ever in the world, the CGT was due by end of the provisional tax period (either August or February) and NOT on assessment.
- It follows that most expats, until they have successfully changed their tax status with SARS to that of tax non-resident, will be liable for provisional tax payments and were obliged to file said provisional tax returns
- You are not employed, on a spousal or sponsored Visa in another country. Do you need to file a tax return? Most probably YES! Why?
- SARS issued a tax return? Then you are obliged to file. No exception and do ensure you have filed your provisional tax returns as well.
- You earned interest, either in SA or outside SA, or received same from a local or foreign trust as a trust distribution
Should you argue that you have told SARS you left SA, and were given a tax good standing letter of some sort, you remain to be SA tax resident in SARS’ view. Leaving the country and notifying SARS is not adequate. To be tax non-resident you need to ensure that:
- Your notify SARS of the fact that you are tax non-resident. Just saying you leaving the country is not adequate
- You need to disclose to SARS the reason why you are considered tax non-resident, being either no longer ordinarily resident in SA or being deemed exclusively tax resident in terms of an income tax treaty with another treaty country
- If you are tax non-resident in terms of treaty rules, relax the days in SA rules can most probably NOT bring you back into the tax system as a resident. The reason being that fact that you most probably ordinarily tax resident yet defined not a [tax] resident because of the treaty. The physical presence test or the days test making one resident, only applies to persons not ordinarily resident i.e. immigrants coming in for the first time, from another country, availing to a short term work permit (vs. a permanent residence permit)
- Very few South Africans can claim tax non-residency bases on the days outside SA. It is just not relevant to most born Saffas
- SARS considers your non-South African spouse, you met in and married while you were both in SA, as most probably tax resident i.e. there is no requirement to hold a permanent residence or to have been employed in SA.
Need some more information? Feel free to follow the link and make contact with Hugo van Zyl
Other blogs by the same author?