Tax residency

Posted 23 June 2015 under Tax Q&A
Piet says:
1 June 2015 at 6:22

In answer to a question I asked a few months ago regarding tax residency, you told me if I was relocating to RSA that I could delay becoming a tax resident of RSA for something like five years. I have permanent residency. Could you direct me to the relevant SARS literature. Thanks


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TaxTim TaxTim says:
1 June 2015 at 9:32

Have you received your permanent residency status already?

Piet says:
1 June 2015 at 10:00

Yes. Received in 2007 I think. Lived in RSA untii 2010. Still current as I visited in 2012 and will be returning again this month for another visit.


TaxTim TaxTim says:
1 June 2015 at 17:31

Even with permanent residency you would need to spend more than 183 days in SA in order for the income earned here to be taxable in SA or are you planning to move back to SA full time?

Piet says:
2 June 2015 at 11:36

When I return I expect to stay for a number of years at least.

New Zealand's Inland Revenue Department's rules are that without fixed abode and being absent from NZ for greater than 325 days in the last year mean that someone is no longer a tax resident of NZ. I don't think that I would have any other option than to be a tax resident of RSA.

I would have preferred to remain a NZ tax resident declaring RSA income and tax paid in a NZ tax return. That return would include other income, not RSA, taxed at NZ rates.

TaxTim TaxTim says:
5 June 2015 at 9:47

Unfortunately you would be subject to tax in SA on your South African income, if you have pension earnings or interest from another country then those amounts will not be subject to tax at the moment.

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