Based on case law and comments by the South African Revenue Service (SARS) under Part 3 of Interpretation Note No 3 - Resident: Definition in Relation to a Natural Person Ordinarily Resident (dated 4 February – 2002) (IN No 3), if follows that physical presence at all times in South Africa is not a pre-requisite to be ordinarily resident in South Africa, and that the following two requirements need to be present for a person to conclusively argue that they are not ordinarily resident in South Africa: An intention to become ordinarily resident in another country; and Steps indicative of this intention having been or being carried out. Thus, when a person states that they no longer regard themselves as ordinarily resident in Africa, SARS may challenge that assertion if, on a balance of probabilities, relevant objective facts point towards a different conclusion. In other words, the purpose, nature and intention of an individual’s absence must be established, and SARS will consider the following factors as relevant when evaluating whether a person is resident’ in South ‘ordinarily Africa: most and settled place of residence habitual abode, i.e. present habits and mode of life place of business and personal interest status of individual in country, i.e. immigrant, work permit periods and conditions, etc location of personal belongings nationality family and social relations (schools, church, etc) political, cultural or other activities application for permanent residence period abroad; purpose and nature of visits frequency of and reasons of visits. Clearly, each case can only be decided on its own facts and circumstances in light of the principles stated above and no hard and fast rules can be made. Example An illustration of the application of principles can be found in BPR 065 (Dated: 03 December 2009). This ruling by SARS concerned a foreign national, who worked outside his country of birth for 4 years before being recruited to work in South Africa for a South African company for a period of two years, renewable annually. Upon relocation to South Africa with his family, he sold his primary residence in his home country and bought a residential property in South Africa. SARS’ approach was to to a number of facts, such as that he sold his property in his home country, inter alia, because he felt that the housing
Based on case law and comments by the South African Revenue Service (SARS) under Part 3 of Interpretation Note No 3 - Resident: Definition in Relation to a Natural Person – Ordinarily Resident (dated 4 February 2002) (IN No 3), if follows that physical presence at all times in South Africa is not a pre-requisite to be ordinarily resident in South Africa, and that the following two requirements need to be present for a person to conclusively argue that they are not ordinarily resident in South Africa: An intention to become ordinarily resident in another country; and Steps indicative of this intention having been or being carried out. Thus, when a person states that they no longer regard themselves as ordinarily resident in Africa, SARS may challenge that assertion if, on a balance of probabilities, relevant objective facts point towards a different conclusion. In other words, the purpose, nature and intention of an individual’s absence must be established, and SARS will consider the following factors as relevant when evaluating whether a person is ‘ordinarily resident’ in South Africa: most and settled place of residence habitual abode, i.e. present habits and mode of life place of business and personal interest status of individual in country, i.e. immigrant, work permit periods and conditions, etc location of personal belongings nationality family and social relations (schools, church, etc) political, cultural or other activities application for permanent residence period abroad; purpose and nature of visits frequency of and reasons of visits. Clearly, each case can only be decided on its own facts and circumstances in light of the principles stated above and no hard and fast rules can be made. Example An illustration of the application of principles can be found in BPR 065 (Dated: 03 December 2009). This ruling by SARS concerned a foreign national, who worked outside his country of birth for 4 years before being recruited to work in South Africa for a South African company for a period of two years, renewable annually. Upon relocation to South Africa with his family, he sold his primary residence in his home country and bought a residential property in South Africa. SARS’ approach was to to a number of facts, such as that he sold his property in his home country, inter alia, because he felt that the housing
2018%20Expat%20Guide.docx