INTERNATIONAL INVESTMENT
TOP TAX
QUESTIONS ANSWERED
WHAT TAX DO YOU PAY IF YOU MOVE ?
46 R E L O C A T I O N
Emigration is , unfortunately , something that many South Africans are considering at present . There are myriad reasons why many leave South Africa , but many blame the crime , lack of safety and rolling blackouts for feeling the need to seek pastures new .
The tax implications of such a move are generally top of mind . ‘ There ’ s often a lot of confusion about what transpires when one emigrates from a tax and exchange control perspective . This is because it is a complex regulatory area and people tend to hear a range of different soundbites regarding how best to go about it , and what outcomes may arise ,’ says Andrew Welsted , partner : co-head of tax at CMS South Africa .
Do I pay tax on the income I earn abroad ?
Ralph Wichtmann , consultant at Sovereign Trust SA , says : ‘ If the South African person has tax emigrated and becomes tax resident in their new country of residence , their income / assets will be subject to the tax laws of that country .
If you ’ re one of the many considering your options but also worried about tax rules and regulations , read on for answers to some top tax questions that are on most emigrants ’ minds .
‘ However , if they still have an income source from South Africa or asset based in South Africa ( e . g . rental income from a South African property that they still own ), then this income will be taxable in South Africa .