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What is a tax residence?



Jigga says:
30 March 2022 at 19:37

What is a residence tax number for South African citizen? I would like to get some more clarification on this because I am not certain whether I am a tax resident in South Africa or whether I am not such.

TaxTim TaxTim says:
30 March 2022 at 15:38

An Income Tax Reference number is only issued by SARS when a person registers for Income Tax purposes. Under South African law, a resident is defined by the Income Tax Act, 1962, as either an individual who meets the physical presence test or an individual who is ordinarily resident in South Africa under South African common law. A tax resident means that you are subject to paying tax on your income earned from South Africa and all over the world. Therefore, this must be declared in a tax return submitted every year to the South African Revenue Service (SARS). Please refer to our blog: How do I know if I am a tax resident of South Africa? 

Please complete our decision tree Am I a tax resident of South Africa? if you are unsure if you qualify. Kindly also read our blog on How to Register for a Tax Number Please refer to our Pricing Page if you would like our assistance in submitting the tax return. 115

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