South African expatriates who ignore their tax obligations will soon fi

South African expatriates who ignore their tax obligations will soon find themselves facing the wrath of the taxman in the upcoming tax season.

SARS has urged taxpayers including expats South Africans residing outside the country to urgently review their tax compliance status or stand the risk of facing major penalties or even jail time.

Originally, individuals were taxed according to a source-based tax system but from 1 March 2001 it has changed so that individuals will be taxed according to a residence-based tax system. In simpler terms, since March 2001 tax residents will be taxed on all their worldwide income local and foreign, while non-residents will be taxed on their South African sourced income only.

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