Saffers abroad need to confirm their non-resident tax status with Sars

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[SPONSORED] South Africans who have left the country must now obtain a letter from sarstax to confirm their tax non-residency status. Sable_Intl Moneyweb taxes

William Louw, Sable International SA tax director, says he’s seldom seen such a flood of South Africans looking to emigrate.

South Africans who have left the country must now obtain a letter from the South African Revenue Service to confirm their tax non-residency status, which is only issued to those permanently leaving the country.Those living abroad without this letter could find themselves obliged to report their global earnings every year to Sars.

There are two concerns: where do you pay taxes and how do you avoid paying more than one tax on the same income? However, the process of becoming a non-tax resident in South Africa is not automatic. The only way to change your tax status is to formally undergo the relevant legal processes through Sars.Tax returns are always to be filed in the country where you are not a tax resident first. It is possible that, in certain instances, a particular amount may be taxed twice since tax systems differ from country to country. Double taxation can however be alleviated through various Double Taxation Agreements .

 

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