When do you no longer pay tax in South Africa?

Feb 09, 2023, 06:57 PM

Since March 2001, all South Africans have been legally required to declare and pay tax on their annual worldwide income, irrespective of where they live. So even if you have been living abroad for a few years, you are still considered a resident for tax purposes, unless you can objectively prove to SARS your intention to remain outside the country permanently. 
With the introduction of a formal SARS Non-Resident Tax Status Confirmation Letter in 2021, South African expatriates can now confirm their tax status. However, getting one of these is neither automatic nor easy, requiring applicants to follow stringent residency cessation and verification processes to qualify as non-residents for tax purposes. 
In this podcast Maya chats to expat tax attorney Martin Bezuidenhout about what you need to know to qualify for the letter and understanding the tax implications of ceasing tax residency.