Many South African taxpayers are deciding to make the move overseas permanent and happily saying goodbye and good riddance to the country and its problematic government.
The taxpayer should note that after saying farewell to all one’s family and friends, there is still one very important final goodbye which is required, namely to the South African Revenue Service (SARS).
Individuals who are emigrating, need to consider the possible tax consequences that they may be faced with when emigrating. SARS needs to be notified when a taxpayer ceases to be a tax resident of South Africa. The necessity of such a declaration is determined by applying specific residency tests. It is vital that one seeks advice from a tax advisor / consultant who has the necessary experience to advise correctly on when one should in fact disclose to SARS that they have ceased to be a tax resident of South Africa.
It is also important that one considers the possible tax effect of ceasing to be a tax resident both from an income tax and capital gains tax perspective. Do not be caught unaware in terms of the ‘Exit tax’ and get lost in the complexities of world-wide income versus source income.
If ceasing to be a tax resident of South Africa is something you are considering or should have considered before emigrating, contact our team at SGN Konsult for advice or guidance through the process.
Contact us at info@sgnkonsult.co.za for more information.
The SGN Konsult Team.
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