In terms of section 25 of the Tax Administration Act, 2011, the South African Revenue Service requires that the persons, as specified in the Schedule of the Government Gazette on the 3rd of July, must submit returns for the 2020 year of assessment, within the periods specified in the Schedule.
This Government Gazette confirms who must and must not file tax returns. It specifically states that people earning under 500k do not need to, based on certainsome requirements, however in section 3(2)(c) it is says that this exemption to not file a tax return does not apply to people earning income outside of SA.
This means that every South African tax resident MUST file a tax return in SA declaring foreign earnings. It clearly shows that expats are on the radar and that SARS wants to know exactly what income they are earning abroad.
FINANCIAL EMIGRATION: KEY TO PROTECT FOREIGN EARNINGS
As a South African tax resident working and living abroad, and with the #ExpatTax2020 date already passed, it is imperative to seek viable solutions in order to protect your foreign earnings before the 2020 Tax Submission dates in September.
The process of “Financial Emigration” terminates your tax residency status with the South African Revenue Service (“SARS”) as well as your status as exchange control resident with the South African Reserve Bank (“SARB”). The SARS process is duly evidenced by an “Emigration Tax Clearance Certificate”, which is part of South African Administrative Law and comes with a guarantee as per section 33 of our Constitution.
Ultimately, Financial Emigration will effectively ensure you do not have to pay any future tax on your hard-earned foreign income as long as you remain non-resident for tax purposes. When your Financial Emigration is successfully completed through our company, we guarantee non-tax residency on record with SARS and SARB.