QROPS Advice:Taxation of Expatriates Living in South Africa

Residence for tax purposes in South Africa is determined by reference to two tests:
1. Ordinarily Resident Test. A person’s ordinary place of residence will be regarded as the country to which he or she would naturally and as a matter of course return from his or her wanderings, i.e. usual, principle place of residence.
2. Physical Presence Test. For persons not deemed ordinarily resident in South Africa, the Physical Presence Test applies.
Individuals are deemed to be residents if they are physically present in South Africa:
a) More than 91 days in total during the relevant tax year
b) More than 91 days in aggregate during each of the preceding 5 tax years to the year of assessment under consideration
c) More than 915 days in total during the 5 preceding tax years.
Only one of these tests needs to be met in order for an expatriate to qualify as a South African resident for tax purposes. Foreign nationals deemed resident in South Africa are subject to the same taxation and qualify for the same allowances, credits and deductions as local residents. South Africa has an extensive network of double taxation treaties. Relief from double taxation is granted under tax agreements, as
well as unilaterally in terms of tax credit provisions contained in the South African Income Tax Act.

http://www.ailo.org/common/externalPage.asp?intURL=/publications/default.asp&extURL=/downloads/South_Africa_2009.pdf