Tax residence rules

Writing in the November De Rebus, Barry Ger first recaps the withholding tax provisions as contained in Section 35 A of the Income Tax Act and then analyses the meaning of resident for tax purposes in the case of individuals. In terms of the definition of 'resident' in the South African Income Tax Act 58 of 1962 (the Act), an individual will be a South African resident for income tax purposes if:

• he is ordinarily resident in South Africa, or
  
• such individual is physically present in South Africa for a prescribed period of time.