DISPELLING THE MYTHS AROUND TERMINATING YOUR TAX RESIDENCY STATUS

The media appears to enjoy telling taxpayers that SARS is “going to get them”, if they do not comply with their legal obligations. But then they fail to tell taxpayers how they can do so….

It is important to understand that if you have your home in South Africa, and earn income, which exceeds the tax threshold, you are obliged to register as a taxpayer, and submit a tax return, which reflects your world-wide income.

This obligation remains, even when you leave South Africa, and establish a new home in another country, unless you request SARS to change your status to that of a non-resident, effective from the date of your departure.

If you change your status to that of a non-resident, you will be released from the obligation to submit annual tax returns and pay taxes in this country. Failure to do so, may expose you to the obligation to submit all outstanding tax returns, and pay the necessary taxes, upon your return to this country, even years later.

There are several requirements, which you MUST meet for this application

·      You must prove that you have a new home abroad;

·      You must provide a copy of the visa which you used to enter your new country of residence

·      You must provide copies of your passport to confirm that you have not returned to live in this country

·      You must confirm that you are a taxpayer in your new country of residence

·      You must provide details of any business interest, and family remaining in this country

What you DO NOT need to do:

·      Dispose of any of your local assets

·      Pay tax for the deemed disposal of immovable property; personal use assets, or money in bank accounts situated in this country

SARS electronic filing system is the mechanism for submitting these requests.  They must be detailed and comply with each one of SARS’ requirements. I have succeeded with all my previous requests for my clients to be deregistered as taxpayers: I can do the same for you.