I'm a dual citizen having both South African and British citizenship. I have worked all my life in UK and am in full time employment under a contract with UK employer. I tax return to South Africa once every year and stay for a holiday between 4 to 6 weeks. If I invest in a fixed rate account of some R500 000 over 5 years, am I liable to pay any tax on that investment product as I'm not ordinary resident in South Africa for tax purposes not indeed even have a South African tax number
If you are a non-South African tax resident you would still pay tax on any income from a South African source. Therefore you would pay tax on the investment income - there is a R23,800 exemption per year for interest so only amounts above this will be taxed.
Thanks Tim. A helpful answer but some clarification. By non South African tax resident in your answer is I think a South African resident but not eligible for tax generally due to my tax status in the UK but if the income is from a South African source then tax to be paid because of that source?
TaxTimsays: 25 May 2016 at 9:35
Yes, from the information provided, you are not a SA tax resident but since you earn income from a South African source, you are eligible for tax in South Africa on these funds.
Get SARS Tax Dates and Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.