Embark on your journey to become a tax resident in South Africa, where the vibrant culture and scenic landscapes are just the beginning. This guide will walk you through each step of the process, ensuring you understand exactly what needs to be done to call South Africa your tax home.
Determine Physical Presence
To qualify as a tax resident under the physical presence test, you must be present in South Africa for more than 91 days in total during the current tax year, more than 91 days in total during each of the five preceding tax years, and more than 915 days in total during those five preceding tax years.
Establish Ordinary Residence
Alternatively, you can qualify by establishing an 'ordinary residence' in South Africa. This means demonstrating an intention to reside in South Africa on a permanent basis. Factors such as owning property, having family in South Africa, and permanent employment can support your claim.
Register with SARS
Once you meet the physical presence or ordinary residence criteria, you must register with the South African Revenue Service (SARS). Complete the IT77 form (available on the SARS website) and submit it along with required documentation such as your passport, visa, proof of address, and bank statements.
Obtain a Tax Number
After registration, SARS will issue you a tax number. This number is crucial for all your tax-related matters in South Africa. Keep it safe and ensure you include it in all communications with SARS.
File Annual Tax Returns
As a tax resident, you are required to file annual tax returns declaring your worldwide income. Use the SARS eFiling platform to submit your returns online, ensuring you meet the deadlines to avoid penalties.
Maintain Compliance
Ensure that you maintain your tax residency status by continuing to meet the physical presence or ordinary residence criteria. Keep detailed records of your time spent in South Africa and any relevant documents to support your residency status.
Legal References
- Income Tax Act No. 58 of 1962, Section 1 - Definitions
- South African Revenue Service (SARS) - Physical Presence Test
- South African Revenue Service (SARS) - Ordinary Residence Test
- Tax Administration Act No. 28 of 2011
- SARS IT77 Registration Form
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