International Tax

International tax can be a very confusing topic.

Although people are always aware that tax is something that affects them in one way or another, it is often one of the last things that they consider seriously when relocating between countries – although most secretly hope that their move will somehow result in them not having to pay tax any longer!

The reality is that it is an important issue for people relocating between countries as their tax status in at least two countries will be influenced by their relocation.

On a basic level, the following changes generally take place for emigrants:

1. In their home country, they will change from being resident to being non-resident for tax purposes.

2. In their new country, they will change from being a non-resident to resident for tax purposes.

A simple repercussion of these changes is that their worldwide income has to be declared in their new home country from now on, and a tax return has to be handed in every year.

Expatriates have to meet two revenue services obligations to be compliant with the laws in two countries. Dealing with international tax is now a reality that emigrants need to manage to make sure that their affairs are being managed effectively and efficiently.

This sounds threatening to a lot of people, but it can also create opportunities!There is a network of double tax treaties between countries in place. Double tax treaties are bilateral agreements between countries to prevent, for example, residents of one country that earn income in a different country paying tax twice. South Africa, for example, has signed double tax treaties with more than 80 other countries, so that you will not pay tax for the same income twice.According to the famous saying: “Only two things in life are certain: Death and the Taxes” we believe in giving our clients all necessary information about their new tax situation so that they can understand where they stand. We make sure that all our clients are compliant with the tax laws in both their new home and the old home country. Being informed about your obligations and opportunities as your situation changes is an important first step. It is something that needs to be dealt with at some stage and cannot be avoided in todays information-sharing age.

Useful international tax links