Double Taxation Agreements

Double Taxation Agreements (DTA) are here to protect you from paying tax twice, once in your host country and again in South Africa. These agreements streamline tax obligations for individuals earning across borders, offering clarity and relief in an often confusing tax landscape.

Contact Us

Why Do You Need DTA Relief?

1

Tax Reduction

Avoid double taxation by applying exemptions or claiming foreign tax credits.

2

Clarity on Tax Residency

Determine your residency status through tests like the tie-breaker test to ensure compliance.

3

Peace Of Mind

Navigate the complexities of global tax obligations with confidence

Common Myths About DTA

1

Automatic Exemption

A DTA doesn't automatically exempt you from South African tax. You must formally apply and notify SARS.

2

Dual Citizenship Equals Exemption:

Having foreign citizenship doesn't negate South Africa's right to tax your global income.

3

Filing Relief

Even with DTA relief, you're still obligated to file a tax return in South Africa

Contact Us

Key Considerations For South African Tax Residents

1

Tax Residency Tests

Your residency status determines whether you're taxed on your global income. Two main tests apply:

Ordinarily Resident Test:

Evaluates your permanent home and long-term ties to South Africa.

Physical Presence Test:

Assesses the number of days you spend in South Africa over three years.

2

Foreign Income Exemptions and Credits

The R1.25 million foreign income exemption applies to qualifying individuals who meet specific work-related criteria abroad.
For income exceeding this threshold, you may claim foreign tax credits to offset your South African tax liability.

3

Documentation Requirements

To qualify for DTA relief, you'll need to submit:

Proof of taxes paid in the foreign country (e.g., tax assessments or receipts).
Supporting documentation for residency or work-related absence claims.
SARS Notice of Tax Non-Residency Confirmation Letter.

Contact us

Contact form

Get in Touch

0861 528 482

The Woodlands Office Park, Building 16, Ground Floor,
20 Woodlands Drive, Sandton, 2080, South Africa

info@IbexConsulting.co.za

Guided by a philosophy of excellence in delivery, we anticipate and meet our clients' needs with precision and foresight. Our comprehensive suite of services is designed to deliver unparalleled value, transcending mere numbers to exceed expectations and achieve exceptional outcomes.