SARS return for the year you immigrated

[pikkewyn]

Hi all

 

There is a rule with SARS, that when you are working in another country (like Botswana for instance) but you're earning your salary through your South African company into your South African bank account, and you are outside of SA for more than 160 days for the tax year and 63 days continously once (something like this?) then you're entitled to get ALL the tax you paid back for that tax year... 

 

I was wondering, does this apply when you immigrate? (not emmigrate) 

For instance if I left SA for Aus end July,  it will mean I would have been outside SA for the required number of days to get ALL the tax back for that year when I immigrated... 

 

Does this rule apply in this way? 

 

Thx all! 

[Hugo2]

Hi, when you leave SA for Oz, you tax EMIGRATE from SA.

 

Departure date from SA is not tax emigration date. Tax emigration date is the day before you became ATO tax resident reporting worldwide income to the ATO (assuming now treaty tie-breaker throws you back to SARS). This is normally the day before you were granted a PR (while in Oz) or the day you entered Oz on your Oz PR or Passport

 

The 183/+60 day rule only applies to tax residents. Therefore the days before you tax emigration, will be subject to the 183/+60 day rules

 

If you were on a work permit (457 as example) you are ATO tax resident not reporting worldwide income but only Oz sourced income. ATO has the right to tax you at source , which they do at payroll level. As you tax resident in SA you can now claim either treaty benefit or 183/+60 day exemption

 

For period after PR was granted, the treaty allows ATO the sole taxing rights. To achieve and claim this, note you will have to face and pay the SA tax exit charges applicable to tax emigrant (someone leaving the SA taxy system as tax resident and continues to be a non-resident taxpayer should there be SA assets held or SA income streams remaining ie SA pension albeit tax exempt in SA)