[CLAIM NOW] Your South African Expat Tax Update by Mike Coady (2023)

South African Expat Tax Update 2023

Feb 15, 2023

by Mike Coady



South African expatriates should not only understand the newly implemented 2022/2023 tax laws, which aim at taxing their foreign employment income but should also act if they want to avoid its dire consequences. With the 2022/2023 SARS tax eFiling season now open and well underway, this blog aims at providing a thorough understanding and detailed update on South African Tax and tax on foreign employment income, specifically for expats.


The amendment to the Income Tax Act has been fully enacted and forms part of the Taxation Laws Amendment Bill of 2017. Despite this, many South African expatriates are under the false impression that the law has not been formally amended and will thus not affect them. The fact of the matter is that this new tax regime has been formally passed and therefore, affects all South African expats working abroad who are still South African tax residents. The historic “I will just submit a nil tax return” approach adopted by many South African expats is no longer the appropriate course of action. The 2022/2023 tax season that has recently been opened will be the first time SA expats will be able to see the effects and impact of the new legislation.


“There shall be exempt from normal tax any form of remuneration to the extent to which that remuneration does not exceed one million, two hundred and fifty thousand Rand in respect of a year of assessment and is received by or accrues to any employee during any year of assessment by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument or allowance… in respect of services rendered outside the Republic by that employee for or on behalf of any employer if that employee was outside the Republic.”

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The amendment requires South African tax residents abroad to pay South African tax of up to 45% of their foreign employment income which exceeds the threshold of R1.25 million.

Although the R1.25 million thresholds may seem generous, employment income includes allowances, commissions, bonuses, gratuities and fringe benefits paid to expatriates. In essence, it is not merely your stated basic salary or basic package, but the aggregate of all your worldwide foreign earnings.

The provision of housing, security, and flights, among other things, are often part of the packages offered to South Africans to induce them to work in foreign locations. These benefits can quickly add up to the R1.25m threshold, particularly in the expensive countries in which expatriates often live.

When it comes to expatriate options, there are effectively two schools of thought, excluding the “head in the sand” approach. These options are based on the intention of the South African expatriate.

There is so much misinformation flying around the South African expatriate community at the moment. Service providers perpetuate this using scare tactics and promoting what will benefit them and their bottom line over what is best for expats at large. These two mis-sold solutions are as follows:

Financial Emigration:

First of all, there can never be a one size fits all approach. Financial Emigration (“FE”) requires certain criteria to be met before one can undergo the process.

Financial Emigration (“FE”) was the formal process to note oneself as a non-resident for tax and exchange control purposes in South Africa. The process was intended to ensure that one had met all requirements under the Income Tax Act No.58 of 1962 to ensure that one was a non-resident in accordance with South Africa’s tax residency tests and also ensured compliance with all exchange control regulations for non-residency. A common myth was that Financial Emigration (“FE”) automatically broke your tax residency status. This was not true as Financial Emigration (“FE”) was an active one taken to indicate to SARS their intent to no longer be considered a resident for tax purposes in South Africa.

These processes included obtaining a tax clearance certificate from SARS, a letter of good standing from the SARB and going through a process whereby the account in South Africa was converted into a blocked account during this process. This was a long, cumbersome and expensive exercise with many caveats.

As of 1 March 2021, Financial Emigration (“FE”) is no longer recognized as a method of breaking your tax residency status and has been decommissioned by SARS. Financial Emigration (“FE”) as a solution to negate tax on foreign employment income is therefore ineffective. Sadly, many financial institutions are still advising expats that this is the correct course of action, which is incorrect.

Double Taxation Agreement (“DTA”):

Using a Double Taxation Agreement (“DTA”) will only be suitable for certain individuals. It is noted that relief, in terms of a DTA, will need to be applied for each year. This does not guarantee that all foreign earnings will be excluded from taxation in South Africa by the taxpayer. Even if one is successful in obtaining a DTA residency certificate, one would still be obligated to file a return to SARS.

As DTA agreements vary between South Africa and the country one resides in, one would need to make sure that the contents of the DTA are fit for purpose and that the DTA has been set up correctly. South Africa does not have DTA’s with all countries, so this will only apply to an expat that is living/working in a country that has concluded such an agreement with South Africa.

Even if a DTA exists, this does not mean that a South African expat is fully exempt from tax or submitting a tax return. Each individual fact and circumstance must be assessed individually. There is also a common misunderstanding between obtaining a residency certificate from the host country and being a resident for tax purposes with SARS. Having a residency certificate does not automatically exclude you from being a tax resident of SA.

Before going into the advantages and disadvantages of both, it must be noted that South Africans abroad whatever their decision should absolutely get to know the tax law that currently affects them and will affect them


A DTA is an international treaty signed between two countries, namely South Africa and a foreign jurisdiction. Not every jurisdiction has a DTA in place with South Africa, so only if one has been set up is the opportunity there to make use of it. Importantly, one must all meet the requirements of the DTA to ensure that they can apply it to exempt their foreign earned income from South Africa. This process must be done on an annual basis, whereby one must declare their foreign income in SA and claim exemption.

SARS is likely to then place the taxpayer under verification or audit whereby the taxpayer must prove non-residency according to the tie-breaker test, in Article 4 of the DTA. Though not a requirement, SARS might also require that one obtain a tax residency certificate from the foreign jurisdiction – this certificate generally states that in terms of the DTA that person is a tax resident of the foreign jurisdiction. This certificate would then be supplied to SARS if and when requested. A deemed disposal must also be done in these cases.


The advantage of applying for a DTA is that you do not need to undergo any formal permanent process in South Africa. It leaves an expat with the opportunity to make decisions on a whim as long as the expat ensures that it still fulfils the requirements of the DTA to have their foreign income not be subject to tax in South Africa.

Undergoing this process is not a complicated matter but can be slightly cumbersome from an administrative point of view. This process also needs to be applied each year.

DTA’s are also a less permanent solution, meaning that a person working abroad can apply for the DTA and may be fully exempt from paying taxes in South Africa on their foreign income and will not have to reverse any formal process if they do return to South Africa.

A notable concern around DTA’s is they are in fact agreements between countries. Should relations change between the countries or should there be amendments to certain regulations or terms, the DTA may become ineffective.

Applying a DTA to your situation is a yearly process, which means that every year you will need to “convince” SARS that, for that particular year of assessment, you are considered as a non-tax resident of South Africa in terms of the specific and relevant DTA. This is a disadvantage because it can become an administrative nightmare and having to prove to SARS your tax residency status for that particular year of assessment on a yearly basis may be a battle.

Furthermore, to prove you fit the bill in terms of a DTA, SARS often requires a tax residency certificate to be submitted to them from the country you are paying taxes in. This may seem simple enough, however, this is often not the case.

For instance, in the UAE, obtaining such a certificate can mean taking two full days of your time to go through the process, or finding a service provider that will do this for you, and there can also be very stringent requirements in a country to obtain such a certificate.

Even more worrying is that certain countries don’t have a formal process in place to obtain or even supply such a certificate. In certain countries, service providers are charging a hefty fee and you will need to obtain this certificate every year. Thus, the costs, in the long run, could be far higher than that of Financial Emigration (“FE”).

DTA’s are specific on the requirements one needs to meet to be considered a tax resident of a country other than South Africa. You, therefore, need to ensure that you take careful notice of those requirements and ensure that you meet them year to year.


Historically, South Africans were able to access their retirement annuities or pension savings when they turn 55 years of age or older or when they had broken their tax residency status with SARS, which would have consisted of obtaining a tax clearance certificate from SARS as well as approval from the SA Reserve Bank.

The National Treasury announced that they would be phasing out the SARB process of financial emigration as of 1 March 2021. Due to these amendments, the ability of individuals being able to withdraw their retirement annuity upon emigration was reviewed and Treasury had confirmed that a 3-year lock-in on retirement savings for South African expats will be implemented from 1 March 2021.

In the 2021 budget speech, it was announced that retirement savings could be withdrawn, prior to retirement, after 3 years from the date from which the break of your tax residency status was formalized. Consequently, from the effective date of the proposed amendments, one will need to be able to prove under either of the two South African residency tests that they are non-resident for a period of 3 consecutive years, post 1 March 2021, before they will be allowed to withdraw these funds from South Africa. Expats wishing to have broken their financial ties with SARS would have needed to do so before 1 March 2021 to avoid a 3-year lock-in period.


The question of whether a natural person is ordinarily resident in a country is one of fact and each case must be decided on its own merits, taking into consideration principles established by case law. It is not possible to lay down hard and fast rules. When filing whether a natural person is ordinarily resident in the Republic, the following factors will be taken into consideration:

  1. An intention to be ordinarily resident in the Republic
  2. The natural person’s most fixed and settled place of residence
  3. The natural person’s habitual abode, that is, the place where that person stays most often, and his or her present habits and mode of life
  4. The place of business and personal interests of the natural person and his or her family
  5. Employment and economic factors
  6. The status of the individual in the Republic and in other countries, for example, whether he or she is an immigrant and what the work permit periods and conditions are
  7. The location of the natural person’s personal belongings
  8. The natural person’s nationality
  9. Family and social relations (for example, schools, places of worship and sports or social clubs)
  10. Political, cultural or other activities
  11. That natural person’s application for permanent residence or citizenship
  12. Periods abroad, the purpose and nature of visits
  13. Frequency of and reasons for visits

The above list is not intended to be exhaustive and is merely a guideline.


The requirements refer to the number of days that a natural person must actually be present in South Africa, during a year of assessment and also during the five years of assessment preceding the year of assessment under consideration.

These requirements are that the person must be physically present in the Republic for a period or periods exceeding – 91 days in aggregate during the year of assessment under consideration; and 91 days in aggregate during each of the five years of assessment preceding the year of assessment under consideration; and 915 days in aggregate during the five preceding years of assessment.

A natural person who complies with all the requirements referred to above is a resident of the Republic, for tax purposes, for the year under consideration.

In addition, any individual who meets the physical presence test, but is outside South Africa for a continuous period of at least 330 full days, will not be regarded as a resident from the day on which that individual ceased to be physically present.

What are the implications of breaking my tax residency status?

When you break your tax residency status with SARS, capital gains tax will be triggered. This is because at the point you break your formal tax residency, you are deemed to have disposed of all your assets in South Africa other than immovable property (a house is an example of an immovable asset). This means that there should be sufficient liquidity available to cater for capital gains tax obligations that may arise when you break your tax residency status. An example of assets that you will be liable to pay capital gains tax on could be:

1) Artwork
2) Shares
3) Investments such as unit trust investments (but not preservation funds, retirement annuities or any retirement savings)
4) Kruger coins or gold
5) Any other assets that are not considered immovable property


Residents will still be required to observe the 183 and 60 full days’ requirements in order to qualify for the exemption. Provided the “days” requirements are met, only the first R1.25 million of foreign employment income earned by a tax resident will qualify for exemption with effect from years of assessment commencing on or 1st March 2021.

Any foreign employment income earned over and above R1.25 million will be taxed in South Africa, applying the normal tax tables for that particular year of assessment.

How do I negate paying tax on foreign employment income?

Provided you meet one of the criteria above, you would need to make a formal application to SARS to have your tax residency status changed to that of a non-tax resident. This would include submission of documentation as well as a formal submission to SARS as a non-tax resident. From this point onwards, once your status has been changed to that of a non-tax resident and your first return submitted as a non-tax resident, you will be considered a non-tax resident of South Africa going forward and not be required to submit a tax return to SARS on any earnings that are generated outside of South Africa.

It must be noted that both non-tax residents, as well as tax residents, will be liable to pay tax in South Africa to SARS on all income generated and derived in South Africa. An example of this would be rental income from a property in South Africa.


Often South Africans abroad fall in a grey area being arguably tax residents in both South Africa and the country they have emigrated to, which the DTA attempts to make the final decision on. However, falling into this grey area means that it could make it far more complicated to prove to SARS that you are a non-tax resident of South Africa.

The more effective and less administratively cumbersome process in mitigating tax on foreign employment income is to make a formal application to SARS to have your tax residency status changed to that of a non-tax resident (provided you meet certain criteria previously mentioned).

It is imperative to understand the options that are available and what the implications of those options would be. It would be highly recommended to obtain a legal tax opinion once one has established what one’s true intentions are and then proceed to examine the cost to benefit of those options. A tax opinion is a legal instrument in terms of the Tax Administration Act which provides protection to the taxpayer against SARS’ penalties and interest if the taxpayer acted according to the opinion. A Tax Opinion can only be issued by a SARS-registered tax practitioner.

For much more information download the South African Expat Navigation Guide.

About Mike Coady

Mike Coady is an expat expert based in Dubai and is on hand to help with all of the above and more.

Mike is an award-winningmoney coachand industry leader in the financial sector.

Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Founding Fellow of the Institute of Sales Professionals (FF.ISP), and a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.

To learn how to choose a great financial adviser,download our free guide.

[CLAIM NOW] Your South African Expat Tax Update by Mike Coady (4)

Blog published byMike Coady.



What is the new expat tax in South Africa? ›

The amendment requires South African tax residents abroad to pay South African tax of up to 45% of their foreign employment income which exceeds the threshold of R1. 25 million.

How many days do you need to be out of South Africa to not pay tax? ›

Breaking tax residence

An individual, who is resident by virtue of the physical presence test, ceases to be a resident when that person is physically outside the Republic for a continuous period of at least 330 full days.

How do I declare foreign income on my tax return South Africa? ›


Copy of your passport showing days in and out of SA. Letter from your employer stating you're allowed to work overseas (and for what periods), plus what amount was earned during that period. Foreign/expat assignment employment contract.

How do I know if I qualify for tax return in South Africa? ›

Who is it for?
  • R91 250 if you are younger than 65 years.
  • If you are 65 years of age to below 75 years, the tax threshold (i.e. the amount above which income tax becomes payable) is R141 250.
  • For taxpayers aged 75 years and older, this threshold is R157 900.

Are expats coming back to South Africa? ›

Expats are moving back to South Africa – and buying multi-million rand homes. On top of a new wave of foreign buyers from Europe picking up multi-million rand houses in the Western Cape, property specialists are also counting a number of ex-pats who lived abroad for several years now returning to South Africa.

How does expat tax work in South Africa? ›

South African “expat tax” exemption

25 million earned as foreign income is exempt from tax and an “expat tax” will be charged on any income earned above this. However: You must have spent more than 183 days outside South Africa in any 12-month period and.

What happens if you don't file taxes for 5 years in South Africa? ›

The administrative penalty for filing a return late is a fixed amount penalty based on a taxpayer's taxable income. It can range from R250 up to a whopping R16 000 a month for each month that the non-compliance continues.

What happens if you miss the tax deadline South Africa? ›

Late filing will attract administrative penalties. Thank you for submitting your income tax return on time. Filing Season for non-provisional taxpayers is now closed. The deadline for Provisional taxpayers is 23 January 2023.

What happens if you don't pay tax in South Africa? ›

Administrative penalties recur each month that the taxpayer is non-compliant, up to a maximum of 35 months. Each recurring penalty will have a unique transaction number. Note: The Penalty Statement of Account (APSA) will no longer be sent with the penalty assessment notice.

What happens if you don't declare foreign income? ›

If you committed a non-willful violation which was not due to any reasonable cause, you may face a civil penalty of up to $10,000 per violation. If you committed a willful violation, the penalties can rise to $100,000, or 50% of the foreign account balance at the time the each violation occurred.

Is there a tax treaty between South Africa and USA? ›

Currently, there is no income tax convention between the United States and South Africa. The income tax convention between the United States and South Africa of December 13, 1946 was terminated July 1, 1987, pursuant to the terms of that convention and Section 313 of the Comprehensive Anti-Apartheid Act of 1986.

How does IRS know about foreign income? ›

US taxpayers are required to report their worldwide income and foreign financial assets annually on their tax returns and on international informational reports, such as FinCEN Form 114 (FBAR), Form 8938, etc.

How long do tax returns take to process in South Africa? ›

If a refund is due, then there is nothing more you have to do– you can log out of eFiling or MobiApp and wait for the refund, which you can expect within approximately seventy-two (72) hours, provided your banking details with SARS are correct. If you owe SARS, then make the payment via eFiling or SARS MobiApp.

How will I know if my tax return is approved? ›

Use the Where's My Refund tool or the IRS2Go mobile app to check your refund online. This is the fastest and easiest way to track your refund. The systems are updated once every 24 hours. You can call the IRS to check on the status of your refund.

What documents do I need for my tax return South Africa? ›

A copy of your valid identity document or drivers licence or passport or temporary identity document or asylum seekers certificate/permit, together with the original identification (for those visiting a SARS office). A copy of your proof of residential address.

Which country has the most South African expats? ›

The largest concentrations of South African emigrants are to be found in the United Kingdom, followed by Australia, the United States, New Zealand and Canada.
South African diaspora.
Total population
Australia200,240 (2020)
United States111,720 (2017)
New Zealand71,382 (2018)
Canada44,660 (2016)
33 more rows

What do South African expats miss? ›

South African expats living abroad can miss the incredible diversity of flora, fauna and the contrasting landscapes of our beautiful country. There's nothing like a South African bush sunset.

What percentage of expats return? ›

Missing family and friends were the top reasons respondents cited for missing home (62% combined). 10% stated countryside, 3% said weather. A further 2% missed their working life. Just over 4% of expats returned home after a year.

How can I avoid paying expat tax? ›

The only way to avoid paying tax to SARS on your worldwide income is to show them that you are no longer a tax resident.

How do I claim tax when leaving South Africa? ›

The application for a refund must be lodged with the VAT Refund Administrator's offices. These offices are situated at Johannesburg, King Shaka and Cape Town International Airports, various land border posts and designated commercial harbours.

What happens if an expat doesn't pay taxes? ›

Failure to pay – If you don't pay your taxes owed, you'll accrue interest on the unpaid balance until you repay it in full. Then you'll be fined the late payment penalty of 0.5% of the tax you owe for each month it's late, up to 25%. Dishonored check – you may be fined for a dishonored check.

How many years can you skip filing taxes? ›

Because there's no statute of limitations on back taxes, the IRS can pursue missing tax payments for as long as they choose. As you can probably imagine, the longer you go without filing or paying, the more insistent their methods for collecting become.

What happens if you skip tax years? ›

If you fail to file your taxes on time, you'll likely encounter what's called a Failure to File Penalty. The penalty for failing to file represents 5% of your unpaid tax liability for each month your return is late, up to 25% of your total unpaid taxes. If you're due a refund, there's no penalty for failure to file.

What happens if I haven't filed taxes in 10 years? ›

If you haven't filed taxes for several years, the IRS may decide to settle your tax bill by setting up a levy on your wages or bank account. This can result in a garnishment of wages or other income. The IRS may also file a notice of a federal tax lien, which can impact your financial options in the future.

How far back can SARS audit you? ›

Five years or until the audit is concluded, whichever occurs first.

What is the minimum salary to pay tax in South Africa? ›

For individuals and sole proprietors, the threshold is R91 250, if you are younger than 65 years. If you are 65 to below 75 years old, the tax threshold (i.e. the amount above which income tax becomes payable) is R141 250.

What happens if you miss October 15 tax deadline? ›

Will the IRS charge penalties for not filing by October 17th? If you have a tax refund coming, there is no penalty for filing late. Penalties are calculated based on amounts due. If you file after the October 17 extended tax deadline and you owe, you will be subject to late filing fees.

Who is exempt from filing a tax return in South Africa? ›

If you earn under R350 000 for a full year from one employer (total salary income before tax) and have no other sources of additional income (for example, interest or rental income) and no deductions that you want to claim (for example medical expenses, travel or retirement annuities), then you don't need to submit a ...

Can you go to jail for not doing tax? ›

It's important to be aware that a continuing failing to lodge a federal tax return can lead to charges of tax fraud, also known as tax evasion, which can be punishable by up to 10 years in prison.

Can SARS freeze your bank account? ›

In terms of the Tax Administration Act (TAA), SARS can only freeze the money in your account if it has notified you that you owe it money and that it is making a final demand. It has to give you ten days after the final letter of demand before it can appoint your bank (as a third party) to collect the tax.

Can the IRS see my foreign bank account? ›

Since foreign accounts are taxable, the IRS and U.S. Treasury have a very rigid process for declaring overseas assets. Any American citizen with foreign bank accounts totaling more than $10,000 in aggregate, or at any time during the calendar year, is required to report such accounts to the Treasury Department.

Can the IRS look at foreign bank accounts? ›

In accordance with FATCA (Foreign Account Tax Compliance Act), more than 110 different foreign countries and more than 300,000 foreign financial institutions are actively reporting us account holder information to the IRS.

How much foreign income is tax free in USA? ›

The maximum foreign earned income exclusion amount is adjusted annually for inflation. For tax year2021, the maximum foreign earned income exclusion is the lesser of the foreign income earned or $108,700 per qualifying person. For tax year2022, the maximum exclusion is $112,000 per person.

Can you be taxed in two countries? ›

If you are resident in two countries at the same time or are resident in a country that taxes your worldwide income, and you have income and gains from another (and that country taxes that income on the basis that it is sourced in that country) you may be liable to tax on the same income in both countries.

Who can claim tax treaty? ›

Generally, the payee must be a nonresident alien student, apprentice, or trainee in order to claim a tax treaty exemption for remittances from abroad (including scholarship and fellowship grants) for study and maintenance in the United States.

Can you be a taxpayer in two countries? ›

Migrants. It is possible to be resident for tax purposes in more than one country at the same time. This is known as dual residence.

Can the IRS see your income? ›

The IRS receives information from third parties, such as employers and financial institutions. Using an automated system, the Automated Underreporter (AUR) function compares the information reported by third parties to the information reported on your return to identify potential discrepancies.

Can the IRS chase you overseas? ›

Yes. Regardless of where you live, the IRS can file a lien against your assets regardless if the assets are located in the US or in a foreign country. Just as long as you own the assets, they are subject to levy.

What countries don t report to IRS? ›

Bermuda, Monaco, the Bahamas, and the United Arab Emirates (UAE) are four countries that do not have personal income taxes. If you renounce your U.S. citizenship, you may end up paying a tax penalty called an expatriation tax.

Why is my tax return taking so long SARS? ›

SARS may have invalid, outdated, incomplete or no banking details listed for you. They would generally notify you if there's been a problem, but if it's been a while since your refund was due and you haven't received any documentation, it's worth it to confirm what banking details are captured.

How do I claim my SARS tax return online? ›

Visit the homepage of this website, www.sars.gov.za. Select 'Manage Tax Type Transfer' in the SARS eFiling space. Complete the online form by capturing ID/ Passport number and tax reference number. An OTP will be sent to the taxpayer to capture.

What triggers SARS verification? ›

Any taxpayer can be selected by SARS for an audit for the purpose of proper administration of tax, including on a risk basis. Taxpayers may also be selected for audit on a random or risk basis.

How long does it take for your tax return to be approved after it's accepted? ›

We issue most refunds in less than 21 calendar days. However, if you filed on paper and are expecting a refund, it could take four weeks or more to process your return.

How will I know if my tax return is rejected? ›

After you submit your return

The email will be sent to the email address you used when you created your account. If the IRS rejects your return, the email will list the reasons for rejection (error) and provide a link you should use to resolve the rejection issue.

When the IRS accepts your return does that mean it's approved? ›

Accepted means your tax return has passed a verification that reviews your basic information. This typically involves social security information for the taxpayer and dependents and more. It does not mean your return is approved.

How do I know if I must submit a tax return South Africa? ›

If you are registered for income tax, you will be required to submit an annual income tax return to SARS based on the Gazette. See the Tax Tables.

What are 4 items you need to file your tax returns? ›

Bring all documents below.
  • Photo ID.
  • Social Security Cards, Social Security Number verification letters, or Individual Taxpayer Identification Number assignment letters for you, your spouse, and any dependents.
  • Birth dates for you, your spouse, and dependents on the tax return.

When must I submit a tax return South Africa? ›

Income tax return filing dates

Provisional taxpayers have until 23 January 2023 to submit their annual income tax return. We thank taxpayers who have already filed and encourage remaining filers to do the same. Your tax matters.

Do you pay tax in South Africa if you live overseas? ›

Employment income. Salary income earned in South Africa by a non-resident will be subject to normal tax in South Africa, unless DTA entered into between South Africa and the foreign country in which he or she resides, stipulates otherwise.

What is South Africa exit tax? ›

Exit tax when you leave South Africa

Capital Gains Tax (CGT) is a tax you pay whenever you make a profit from selling something you own. When you declare yourself non-tax resident, you're deemed to have sold your assets (excluding immovable property situated in South Africa and your RA) to your foreign self.

How are non residents taxed in South Africa? ›

Non-resident individuals are exempt from income tax unless the individual is physically present in South Africa for more than 183 days in aggregate during the year preceding the date on which the interest accrues or the debt on which the interest arises is effectively connected to a PE in South Africa.

What taxes do expats pay? ›

Most expats will not pay US taxes thanks to the benefits of Foreign Earned Income Exclusion and Foreign Tax Credit. However, expats must file taxes annually if their gross worldwide income exceeds the annual filing threshold. So even if you do not owe any taxes to the IRS, you still may need to file.

How much money can you receive from overseas without paying taxes? ›

However, you may qualify to exclude your foreign earnings from income up to an amount that is adjusted annually for inflation ($107,600 for 2020, $108,700 for 2021, $112,000 for 2022, and $120,000 for 2023). In addition, you can exclude or deduct certain foreign housing amounts.

How long can you live abroad without paying taxes? ›

330 Full Days

You can count days you spent abroad for any reason, so long as your tax home is in a foreign country.

How can I avoid exit tax? ›

In order to even be subject to the IRS covered expatriate and exit tax rules, a person must be a U.S citizen or long-term legal permanent resident. Therefore, the easiest way to avoid the long-term resident exit tax trap it is to simply avoid becoming a legal permanent resident.

How much money can you leave South Africa? ›

Excess currency in terms of South African Reserve Bank (SARB), Exchange Control Regulation is any amount in excess of R25 000 or any foreign currency which is convertible to Rand in excess of R25 000. Travellers must obtain written permission from the SARB before entering or leaving South Africa with excess currency.

What is expat tax? ›

An expatriation tax is a government fee charged to individuals who renounce their citizenship, usually based on the value of a taxpayer's property.

Do retired people pay tax in South Africa? ›

As indicated above, the two thirds of the retirement interest from a pension, pension preservation or retirement annuity fund is received in the form of an annuity (a regular pension). If the income from your annuity exceeds the tax threshold, tax is payable on the amount.

How much money can a non resident take out of South Africa? ›

A traveller leaving South Africa must declare currency in his/her possession. The South African bank notes is unlimited if the traveller is traveling within the Common Monetary Area (CMA). Traveller must have prior authorisation from SARB to travel with any amount exceeding R25 000 allowance.

Can a non resident open a bank account in South Africa? ›

Can I open a Non-Resident bank account at any South African branch? Yes, if you bring all the required documents with you.

What happens if you don't file taxes as an expat? ›

Failure to file – If you owe taxes and you fail to file, fines start at 5% and go up to 25% of unpaid tax—and that doesn't include fines and interest on the owed amount. There isn't a penalty for filing taxes late if you owe nothing, but you won't have access to your refund until you file.

What happens if an expat doesn't file taxes? ›

The penalty for not filing your tax return is 5% of the amount of tax shown on the return for each month you have not filed, up to 25% of your tax owing. If you fail to pay, the IRS imposes a ½ percent penalty for each month that the amount remains unpaid, up to 25% of your total tax owing.

Is an expat still a US citizen? ›

You became at birth a U.S. citizen and a citizen of another country and, as of the expatriation date, you continue to be a citizen of, and are taxed as a resident of, that other country.

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Birthday: 1993-05-13

Address: 2113 Abernathy Knoll, New Tamerafurt, CT 66893-2169

Phone: +25815234346805

Job: Central Developer

Hobby: Machining, Pottery, Rafting, Cosplaying, Jogging, Taekwondo, Scouting

Introduction: My name is Margart Wisoky, I am a gorgeous, shiny, successful, beautiful, adventurous, excited, pleasant person who loves writing and wants to share my knowledge and understanding with you.