Where are you tax resident in a global context?
(Please note that this is a simplification of the court case discussed below for purposes of our newsletter) With personal and business interests outside South Africa, it is increasingly probable for taxpayers to trigger tax residency in two countries at the same time. Tax residency depends on countries’ domestic tax laws, e.g. you may […]
Budget Speech 2022: Focus areas to take note of
The Budget Speech 2022 included a welcome relief for personal and corporate taxpayers. With a 4,5% adjustment aligning with inflation, the personal income tax (“PIT”) table has been adjusted accordingly, meaning that the annual tax-free threshold for a person under the age of 65 will for example increase from R87,300 to R91,250. For companies with […]
Liquidity analysis of your estate – Important factors to consider
Written by Gina Lazarides • Cash bequests: Any specific bequests of cash amounts to someone in your Will may cause liquidity problems in your estate. If there is not enough cash or liquid assets in the estate to pay the expenses, liabilities, and the cash bequests, assets may have to be sold by the executor, […]
An alternative method of placing non-tax residency on record
Up to recently you could declare your non-tax residency in your tax return (submitted via eFiling) or by requesting a certificate of residence from the South African Revenue Service (“SARS”) by completing a specific form (RAV01). In both instances, the person must be registered for income tax purposes with SARS. In light of the above, […]
SARS and my tax residency status when I now live outside South Africa
I left South Africa (“SA”) after school to study abroad. I accepted a job offer in the United Kingdom (“UK”), where I was studying, after my graduation. I have been living outside SA ever since. I recently married a UK resident and plan to stay in the UK permanently, and only return to SA on […]
We are leaving South Africa – Part 2
In this article, we deal with the consequences in relation to retirement funds when relocating abroad as well as exchange control considerations. Exchange control considerations The concept of emigration as recognised by the South African Reserve Bank (“the Reserve Bank”) was phased out with effect from 1 March 2021 and was replaced by a verification process with […]
2021 Tax Laws Amendment Bill and Tax Administration Laws Amendment Bills
The annual tax laws and tax administration law amendment bills have recently been published by National Treasury for comments by the public. Of particular interest, the following changes have been proposed: Clarifying the timing of disposal rules in respect of an asset acquired from a deceased estate When a person passes away, the […]
Tax call to action: Make sure
With reference to BusinessTech’s article dated 9 July 2021, the South African Revenue Service (“SARS”) has sent letters to 275 high net-worth individuals (“HNWIs”) with financial assets abroad. We have recently published a blog post alerting our clients to the newly established HNWI unit by SARS and forewarning of the said letters. Click here […]
We are leaving South Africa – Part 1
What are the tax consequences? Many South African tax residents relocate to different jurisdictions for different reasons. Much has been written about “emigration”, “exit tax”, “residency” and the most confusing of all is the difference between the tax and exchange control consequences. This article aims to clear the murky waters and set out the […]
Is poor tax compliance akin to culpable homicide?
by Suzanne Smit, Fiduciary and Tax Consultant New tax laws recently removed the term “wilful” in order to include both intentional and negligent conduct within the ambit of the criminal offences As part of its efforts to tighten enforcement, the South African Revenue Service (“SARS”) has tightened the law for non-compliance. Wilful intent is […]