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Joseph says: 24 May 2016 at 2:25 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 |
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TaxTim says: 24 May 2016 at 9:34 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. Please read our blog on How to get a SARS tax number Also see Am I a tax resident of South Africa? |
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Joseph says: 25 May 2016 at 8:28 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? |
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TaxTim says: 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. |
