Current Tax Issues: Taxation of Individuals
Presenters : Godelive Mutidja
Overview
South Africa’s residence-based tax system means that individuals classified as tax residents are liable for tax on their worldwide income, while non-residents are taxed only on South African-sourced income. However, determining tax residency can be complex and is based on key tests, including the Ordinarily Resident Test, the Physical Presence Test, and the application of Double Taxation Agreements (DTAs). This video will provide attendees with a comprehensive understanding of how tax residency is determined, the implications of ceasing tax residency, and the steps required to update one’s tax status with SARS.
We will explore the practical consequences of transitioning from resident to non-resident status, including the impact on employment income, dividends, interest, rental income, and capital gains tax. Additionally, attendees will gain insight into the tax treatment of different income streams, the management of exit tax liabilities, and how DTAs can help prevent double taxation. Whether you are an expatriate, tax practitioner, or individual with cross-border income, this session will equip you with the knowledge and strategies to navigate South Africa’s tax residency framework confidently.
Video Content
• How to Change Your Tax Residency Status on the SARS RAV01 Form
• Understanding the Physical Presence Test vs. Double Taxation Agreements (DTAs)
• Key Tax Considerations in the Year of Residency Change
• Capital Gains Tax (CGT) on Exit and Asset Exemptions
• Practical Considerations: SARS, Banking, and Financial Implications
Competencies Developed
- A clear understanding of how to formally change tax residency status with SARS
- Knowledge of how DTAs influence tax residency and liability
- Ability to calculate and manage CGT when ceasing South African tax residency
- Practical insights into how tax residency changes affect compliance with SARS and financial institutions
- Confidence in advising clients on residency changes and their tax implications