A taxpayer works in Swaziland and is currently a citizen of Swaziland. The company he is working for in Swaziland is a South African company. Does the taxpayer still need to submit his South African tax return and qualify for the 183 days requirement of which 61 days must be continuous, even though he is no longer a citizen of South Africa?
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
From the information provided it is not clear if the person emigrated from the RSA. The fact that the individual is a citizen of Swaziland will only be relevant for purposes of paragraph 4(2)(c) of the tax treaty between the RSA and the Kingdom of Eswatini. The exclusive test is found in paragraph 2 of Article 4 of this agreement. The principle is that one must determine if the individual is 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. This is because the RSA Act, in the definition in section 1(1) of the Act, excludes such a person. It means that a person who is solely a resident of the other country, based on the agreement, will not be a resident (for tax purposes) of the RSA and will have ceased being a resident of the RSA because of that. Under Article 15, of the treaty, Swaziland (as you refer to it) will have an exclusive right to tax the income form employment and the individual would then not need an exemption in the RSA.