Changes to double taxation agreement, residency presence test could be on the horizon - William Louw Sable International

If you live overseas, earn income from South Africa, or reside locally while receiving funds from abroad, navigating taxation can be incredibly complex. William Louw, a tax specialist at Sable International, shared with BizNews that the South African Revenue Service (SARS) is changing its approach—now requiring submissions of returns that were previously unnecessary, as well as requiring historical returns. This has led to some South Africans facing double taxation, despite existing Double Tax Agreements (DTA)  in their countries of residence. Louw noted that this issue isn’t limited to South Africa; globally, tax authorities are scrutinising whether tax credits are permissible under these agreements. He also said that SARS is closely examining the residency presence test, and potential changes might be on the horizon. An intriguing dilemma has arisen according to Louw for those contemplating a return to South Africa: currently, SARS lacks a clear mechanism for South Africans to reclaim their tax status.