Saffers abroad can be taxed

NON-RESIDENTS: SARS TIGHTENS SCRUTINY

- Delano Abdoll

The South African Revenue Service (Sars) appears to be taking an increasingly sophisticated and technically rigorous approach to applications from taxpayers who rely on double tax agreements (DTAs) to cease South African tax residency, before approving a change in tax residency status to that of a non-resident.

The practical implication is that many South Africans living and working abroad, obtaining confirmation of non-resident tax status from Sars – often viewed as the final step in their tax emigration journey – may now require more technical accuracy and comprehensive supporting evidence.

Sars is moving beyond a simple review of departure dates and passport stamps, and is placing far greater emphasis on whether taxpayers genuinely qualify for treaty relief under international tax law.

If successfully applied, this results in their foreign-sourced income no longer being subject to South African tax.