When you are earning your salary in Germany, and you are still a tax resident in South Africa, you need to declare your foreign income to SARS by submitting an annual Tax return to SARS.
If you earn less than R1.25 million per year in Germany, you do not pay any taxes on this foreign income in South Africa.
If you earn above that, the taxes you already paid in Germany are taken into account as a tax credit when calculating the taxes due on the amount above R1.25 million. Detailed info on Foreign Employment Income Exemption from SARS
Disclaimer - We are not tax consultants; always refer to a professional Tax consultant concerning your taxes Before making financial decisions, speak to a professional to get expert advice about your specific situation.
A taxpayer should therefore now capture the emigration by amending the RAV01 particulars, which should then, once reviewed by SARS, follow through to the ITR12.
Taxpayers ceasing tax residency in terms of the physical presence test need only to supply the standard documents listed below.
Taxpayers ceasing residency as a result of the application of a Double Taxation Agreement will need the standard documents and a certificate of tax residency from the relevant Foreign Revenue Authority, or if they do not produce such certificates, a letter from the Foreign Revenue Authority stating that they are tax resident in that country. To our knowledge, in Germany, this is called an Ansässigkeitsbescheinigung, which is issued by the German tax authorities.
Taxpayers ceasing residency in terms of the ordinary residence test will need to supply a motivational letter and further specific supporting documents listed below.
Supporting documentation
The onus is on the taxpayer to prove that s/he is not subject to tax in South Africa, and by implication, the onus is on the taxpayer to prove that s/he has become non-resident for South African tax purposes as and when declared.
Standard supporting documents include:
Information supplied by LSG Integrated, on 28.07.2022. The information was correct at the time of writing, and will be updated as we become aware of changes
Pieter and Richell from Beztforex recently hosted a Tax Emigration Workshop for our community, guiding us through the labyrinth of rules, requirements, and those little “gotchas” that only seasoned professionals see coming.
Here are their contact details should you wish to reach out for personalised support.
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