Can you be resident in two countries




















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The difference between your domicile and tax residence status. Last updated 21 September at Domicile explained What is domicile? Why is your domicile important Among many things, your domicile is important when it comes to determining your tax liabilities in three main areas: your income tax from investment or employment , Capital Gains Tax and Inheritance Tax.

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Hide this message. Home Money and tax Income Tax. Tax on your UK income if you live abroad. These include your most fixed and settled place of residence, place of business and personal interests, family and social relationships schools, places of worship, etc. The amendment only applies to individuals earning foreign employment income, i.

This therefore excludes independent contractors or individuals who are self-employed and earning income outside South Africa.

Your tax residency is not automatically broken when you financially emigrate. Financial emigration is merely one factor that may be taken into account when determining whether or not you have broken your tax residency. It can, together with the above-mentioned factors, substantiate your evidence, but on its own it is not sufficient or conclusive.

You will need to take proactive steps to confirm your intention with SARS. You need to notify SARS when you cease to be a tax resident in South Africa, otherwise you may still be seen as a tax resident in their eyes.

If your tax residency changed in a prior tax year, and a capital gain was triggered but not declared, you can declare it through the Voluntary Disclosure Programme to eliminate any potential penalties and prosecution. Alternatively, if you choose to emigrate from South Africa, you can notify SARS when applying for a tax clearance certificate via eFiling that your intention is also to cease to be ordinarily resident in South Africa.

You may still have tax obligations when your South African tax residency ends. You are regarded as having sold all your assets at market value, excluding immovable property, for capital gains tax purposes when you break your tax residency.

The tax cost can be substantial. Once a non-resident, you will continue to be liable for tax on any South African-sourced income such as rental income, investment income, etc. If you are no longer a tax resident and earned no income in South Africa, you do not need to file a return.



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