The Tax Vs Financial Emigration

Overview

Various South Africans are required to work abroad. Many questions arise related to the taxing of income earned by these South Africans. Double tax agreements, the location of the employee’s family and home, the duration of the agreement and various other factors could impact the tax consequences and considerations. An assessment is then necessary of whether the South African is tax non-resident or has emigrated because of a treaty or other circumstances, and whether the correct process was followed from a financial, legal and tax perspective. The new tax rules impact differently on expats, all depending on the Income Tax Act’s definition of “tax resident” as applied to their personal circumstances.

Course Content

Join Hugo van Zyl who will share his expertise on, inter alia, the following practical problems:

An update on the process already put in place by SARS (existing and new processes).

What does South African employers of seconded staff need to do?

What are the VAT implications of assignment-related cost charges?

Are the assignment-related costs borne by the home entity deductible for corporate income tax purposes?

Some countries in the Middle East have double tax agreements with South Africa, but the problem is that a lot of them don’t have a tax revenue office, which means you cannot get a tax resident certificate to prove to SARS that you’re a tax resident there. What process should then be followed?

If a couple is based in South Africa, and one spouse is predominantly working outside the country in Africa and the other is working in South Africa, will they be regarded as SA tax residents?

Does it matter whether you work in a country with no double taxation agreement or in a country where there is a double taxation agreement? Does it have an impact on residency?

What is the (financial, legal and tax) process to change my residency status? Can I do this myself or do I need to get a professional involved? How does it impact on my employer?

If I change my residency status to not resident, can I still own property in SA?

What will be the tax consequences when changing my residency status and are there ways of reducing this tax?

Must I give SARS a physical address in SA or outside SA when I am a non-resident?

Does the fact that I have a dual passport impact my residency status?

I have left SA and don’t have the intention to return. Could I be subject to penalties on my unplanned return? If so, can I get them reduced or remitted?

Do I still need an active tax reference number if I become non-resident and own property in SA or have an investment in SA?

As a non-resident, must I still submit a return when withholding tax was withheld on interest or royalties or dividends?

OK, I am liable for expat tax, but when and how do calculate it and how do I pay SARS?

Presenter

Hugo van Zyl

CA (SA) TEP MTP(SA) MCom (Tax)

Based in Cape Town, Hugo runs his own private tax practice as well as a joint venture tax and formal emigration business.

Hugo emigrated his first client in May 1993 two months after the Chris Hani murder, and since then he has lectured SA expat, SA CGT and income tax in Los Angeles, New York, Chicago, London, Amsterdam, Dubai, Abu Dhabi, Mauritius, as well as locally throughout South Africa. Since 1993, Hugo has assisted several ex-pats, Saffas and global citizens in entering and exiting South Africa, not only from a tax perspective but also as a cross-border exchange control and multi-jurisdictional trust and estate specialist.  

In 2014, 2016, 2017 and 2019 Hugo was an active tax specialist and fiduciary panelist at the Tax Indaba. In 2020 he was a guest speaker at national AGM of the Fiduciary institute of South Africa. For SAIT and The Tax Faculty he has done more than five webinars and a country-wide roadshow on the then new section 7C tax rules.

Hugo is not only a PBO/NGO specialist providing tax and practical advice; he also spent many years as national treasurer for both the Association of Round Tables (ARTSA as it was then known) and Chaine des Rôtisseurs Afrique de Sud (www.chaine.co.za).

Hugo is known by his international Twitter name @wegkaner.

CPD

This webinar and successful completion of the online assessment will secure 2 hours verifiable output TAXCPD points/units.

Event Investment

Free for all to 2020 CPD subscribers. (Not yet a subscriber? Please click here for more information).

Non-member: R475.00

Company Price: R950.00

Please note the company price applies whenever more than one person will be watching a webinar concurrently from one connection, e.g. if a group is watching the webinar together in a boardroom

Payments & Cancellations

All payments must be made by EFT or by credit card, at least 3 working days before commencement of an event.

Kindly note that should payment not been received 2 days after the event, legal action will be taken

Proof of payment will be requested at registration, if payment at that point in time has not been reflected on Taxfaculty’s bank account.

Only written notice of cancellation will be recognised.

Conditions:

If the cancellation occurs more than 4 working days prior to the event no cancellation fee will be charged.

If the cancellation occurs less than 4 working days prior to the event a 100% cancellation fee will apply.

Delegates who book and fail to attend will be liable for the full event fee.

Taxfaculty’s liability in the case of an event being cancelled will be limited to a refund or credit of the event fee.

Please click here for the full terms and conditions.

— Read on taxfaculty.ac.za/events/2020-webinar-tax2020-financial-emigration-vs-tax-emigration

Tax 2020 Time lines for SA Expats

uae-tax-exit-summary.pdf

your ref:

#Tax2020Truth

WHAT TO DO?

Monday, 06 January 2020

UAE TAX EMIGRATION SUMMARY JANUARY 2020

our ref: UAE Tax Exit Summary.docx

General guidelines for South African Expats (#Saffas) or #Wegkaner – not employed by SA employer

There is great confusion as the solutions, products and tax process to be followed by Saffas residing AND working in the UAE (in possession of an Emirates ID card)

Foreign Earned Income refers to income from employment only, as defined in ITA section 10(1)(o)(ii)

Action points Continue reading “Tax 2020 Time lines for SA Expats”

What Expats Must Do Before 1 March 2020 with Hugo van Zyl – PROpulsion Podcast

Ep. 16 – South African Expat Tax Changes and What Expats Must Do Before 1 March 2020 with Hugo van Zyl – PROpulsion Podcast
— Read on www.propulsion.co.za/ep16/

  • Your first tax payment – due 31 August 2020
  • Your first tax filing date – Probably late 2020 

Hugo van Zyl CA(SA) TEP MTP(SA) is well-known for his expertise in cross-border tax and financial planning.  It is no surprise that his colleagues refer to him as “ask Hue’Gle” when all other resources fail.  His track record speaks for itself. Continue reading “What Expats Must Do Before 1 March 2020 with Hugo van Zyl – PROpulsion Podcast”

#taxmigration vs. #financialemigration

And the scoreboard reads:

#taxmigration                    10        

#formalemigration              5         

#financialemigration       0 (failed)

Eventually, we have SARS buy-in and confirmation that formal emigration is not a tax act process.

Yes, SARS punched the punters of financial emigration, a bloody if not deadly blow! Continue reading “#taxmigration vs. #financialemigration”

WW Directory Of Tax Professionals – My Blog

WW Directory Of Tax Professionals – My Blog

Full blog on http://taxconnections.com/taxblog/tax-year-end-in-south-africa/ 

New webpage address is taxmigration.com or cgt.co.za 

Tax year-end in South Africa, for smaller companies and all individuals, is on the last day of February 2013.

In terms of the collection process, South African Revenue Services (SARS or the equivalent of IRS and HMRC, the competent taxing authority in SA)  expects all provisional taxpayers to be either 80% or 90% correct in the end February provisional tax estimate, compared to the final assessment or IT34.

Read more ….