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SARS Tax Non Residency letters


John Bertrand
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Hi all,

 

I read the following article recently re. latest SARS happenings:

https://www.taxconsulting.co.za/non-resident-confirmation-letter/

 

I know forum advice is probably not the route to go, but I value people's input, who may be in the same basket.

 

Our situation:

* Living in Aus for 13 years

* Aus citizens since 2015.

* PR Since around 2013

* Never "financially" emigrated with SARB or SARS

* Occasional holiday visits back to SA to see family

* No property, bank accounts etc. in SA. Houses/bank accounts etc. all in AUS.

* 2 smalls RA's left in SA. We're keeping those with the thought that they could fund our holiday visits above, in the future once they pay out at age 55, if I'm not dead yet.

 

So from the above situation, I always assumed we'd meet the 20 thousand complicated tests of tax residency imposed by the various countries. Eg so viewed as non-tax residents by SARS, viewed as tax residents by AUS generally around the time PR was issued, or even perhaps before that.

 

Once we got PR and bought our house in Aus, we stopped lodging SA returns (which were 0 anyway since we assumed tax non residency status). When i checked recently, looks like our Efiling accounts were closed, which was expected.

 

Should we still bother getting the new "Non tax residency" letters from SARS (which I think may be valid for a year), or are those really only for people who have recently migrated/wanting to migrate? Our non residency status should be pretty clear to determine by both tax agencies in both countries.

 

When the time comes for our RA's to pay out via a living annuity, we're thinking of just getting them paid into a local SA account there, then starting up our SARS tax returns again due to local income needed to be declared. It's a pain, but that's the rules as far as I know.

 

Thanks everyone!

 

John.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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2 hours ago, John Bertrand said:

 

* PR Since around 2013

* Never "financially" emigrated with SARB or SARS

HUGO: Morning, you can cease to be a resident 2014 SA tax year as the only relevant tests are paying tax to ATO on worldwide basis and having a permanent home available in ONLY Australia. All the rest is there to confuse the issue

 

* 2 smalls RA's left in SA. We're keeping those with the thought that they could fund our holiday visits above, in the future once they pay out at age 55, if I'm not dead yet.

HUGO: I can't give  financial advise only tax comment!ATO tax theses products, so cash them out as there is one item taxed twice then it is lump sum on retirement but don't despair tax twice does not mean paying double tax. I n terms of DTA the ATO has SECOND taxing rights from day your held PR but they must give credit for tax paid in SA. SO the R500k exempt in A on retirement is NOT exempt in Aus.  Also ATO will allow as deduction the contributions since PR date

 

 

When the time comes for our RA's to pay out via a living annuity, we're thinking of just getting them paid into a local SA account there, then starting up our SARS tax returns again due to local income needed to be declared. It's a pain, but that's the rules as far as I know.

Hugo: As I said not a financial adviser but this is indeed an idea. Unlike lump sum, the annual pension or living annuity may ONLY be taxed by ATO. You therefore will have annual a dentist appoint to pull SARS teeth. It is called the RST01 proces. May tax advice: cash our you qualify as you have been tax non resident for 3 or more consecutive years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Excellent advice as always, thanks Hugo!

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