Contact UsI need to know will I automatically become a globally tax resident again? I would prefer not to be the latter global/taxable category i.e. fully or ordinary resident , & my life span left would suit being a temporary resident up to 5 year periods (no global tax), BUT would I be forced into a PE (permanent establishment) status e.g. through RSA spouse exemption despite applying for a temp. res. i.e. the required short term visa - the one without global tax but local tax (NB no response from Home Affairs)
Old Irish guy emigrated from RSA in 2003 after 30 years there (no assets left in RSA) - have been living in Dubai, UK & USA ever since for no more than 90 days each annually & visited RSA annually for less than 90 days & is married to a RSA, (ANC) who is with me but never emigrated from RSA. I inherited & or amassed foreign assets in savings/inheritance ex-RSA - all offshore, and am not domiciled or being taxed anywhere, due to perpetual travelling in retirement. I now may need to spend minimum of 9 months in RSA having prolonged orthopaedic surgery (where I kept up medical aid for my wife & I). An old dormant tax file (never closed strangely at bank emigration point) & an ID no would exist on a driver's license which I keep current.
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Tax Professional Answers
Hugo Van Zyl
Dear Irish Guy
I prefer not to use the word OLD.
1. I need to know will I automatically become a globally tax resident again? - There is no such a definition in SA tax law. You are either tax resident on non-resident
2. BUT would I be forced into a PE (permanent establishment) - If you conduct no trading you will not face the PE question. You are fudging tax rules of a corporate entity with that of an individual. Only individuals conducting trade face the PE question and PE rules was defined to allows SARS to tax at source the income of a NON-Resident i.e. to tax someone not normally facing SA tax. In most cases PE is a tax treaty issue and you indicate no tax residency at this stage which will then deny you the benefit of a treaty definition. Can we then agree to ignore the PE question for now?
3. No response from Home affairs - you will not receive tax advice from Home Affairs as taxation is the domain of SARS (SA Revenue Services). To apply for an advance tax ruling, you need to be registered as an eFiler on the SARS eFiling system. Note: For the No Rulings List, please refer to Public Notice 103 of 8 February 2013 or read www.sars.gov.za/AllDocs/OpsDocs/Guides/LAPD-TAdm-G02%20-%20Comprehensive%20Guide%20to%20Advance%20Tax%20Rulings%20-%20External%20Guide.pdf
4. A tax number is not indicative of a tax residency status. All my non-resident clients renting out SA properties or receiving tax-free SA pensions, do have a tax number, but they remain tax non-resident
5. Spending 9 months in SA for medical treatment should not result in you being tax resident. But this must not be seen in isolation. Why are you undergoing medical treatment in SA? If that is because SA is where you will go to at the end of your journey (because of medical or pension reason or SA passport wife), you may become tax resident.
We look forward to be of assistance
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466 weeks ago
I prefer not to use the word OLD.
1. I need to know will I automatically become a globally tax resident again? - There is no such a definition in SA tax law. You are either tax resident on non-resident
2. BUT would I be forced into a PE (permanent establishment) - If you conduct no trading you will not face the PE question. You are fudging tax rules of a corporate entity with that of an individual. Only individuals conducting trade face the PE question and PE rules was defined to allows SARS to tax at source the income of a NON-Resident i.e. to tax someone not normally facing SA tax. In most cases PE is a tax treaty issue and you indicate no tax residency at this stage which will then deny you the benefit of a treaty definition. Can we then agree to ignore the PE question for now?
3. No response from Home affairs - you will not receive tax advice from Home Affairs as taxation is the domain of SARS (SA Revenue Services). To apply for an advance tax ruling, you need to be registered as an eFiler on the SARS eFiling system. Note: For the No Rulings List, please refer to Public Notice 103 of 8 February 2013 or read www.sars.gov.za/AllDocs/OpsDocs/Guides/LAPD-TAdm-G02%20-%20Comprehensive%20Guide%20to%20Advance%20Tax%20Rulings%20-%20External%20Guide.pdf
4. A tax number is not indicative of a tax residency status. All my non-resident clients renting out SA properties or receiving tax-free SA pensions, do have a tax number, but they remain tax non-resident
5. Spending 9 months in SA for medical treatment should not result in you being tax resident. But this must not be seen in isolation. Why are you undergoing medical treatment in SA? If that is because SA is where you will go to at the end of your journey (because of medical or pension reason or SA passport wife), you may become tax resident.
We look forward to be of assistance