A taxpayer has not officially emigrated but has been overseas and earning income with no intention of coming back. From when should the taxpayer be treated as a non-resident because he is now resident overseas?

A person will no longer be a ‘tax resident’ of the RSA if he/she ceases to be ordinarily resident in the RSA or if he/she is deemed to be exclusively a resident of another country for purposes of the application of any agreement entered into between the governments of the RSA and that other country for the avoidance of double taxation.

The 330 days (mentioned in the definition of resident) are only relevant to a person who was deemed to be a resident of the RSA.

The notice for the 2016 year of assessment requires that a natural person must furnish an income tax return if the person is:

(d) (i) someone who carried on any trade in the RSA (other than solely in his or her capacity as an employee);

(ii) someone to whom an allowance or advance was paid or granted as described in section 8(1)(a) of the Act (other than an amount reimbursed or advanced as described in section 8(1)(a)(ii)) and whose gross income exceeded R73 650, R114 800 or R128 500;

(iii) someone who had capital gains or capital losses exceeding R30 000;

(e) a non-resident whose gross income consisted of interest from a source in the RSA to which the provisions of section 10(1)(h) of the Act do not apply.

The return is not required if the gross income of that person consisted solely of gross income described in one or more of the following subparagraphs:

(a) remuneration, other than an allowance or advance referred to in paragraph (d)(ii) above, paid or payable from one single source, which does not exceed R350 000 and employees’ tax has been deducted or withheld in terms of the deduction tables prescribed by the Commissioner;

(b) interest from a source in the Republic not exceeding:

(i) R23 800 in the case of a natural person below the age of 65 years; or

(ii) R34 500 in the case of a natural person aged 65 years or older;

(c) dividends and the natural person was a non-resident throughout the 2016 year of assessment.

Please take note that it is advisable to complete the SA tax return if the taxpayer still contributes to a SA retirement annuity fund as he could then later get a tax deduction on retiring from the fund.

You are welcome to contact the tax consultant Fanus Jonck (tax@jonck.net) with your tax queries.