Case Study | Internationally Mobile Couple Spending Extended Periods in South Africa

Internationally Mobile Couple Spending Extended Periods in South Africa

The Situation

A married couple who had emigrated from South Africa to New Zealand in 2008 obtained permanent residence and later citizenship in New Zealand, where they established their family life, careers, social networks and long-term home. More than a decade later, family circumstances in South Africa, including the passing of close relatives and the desire to spend time with children and grandchildren, resulted in the couple spending significantly longer periods in South Africa whilst continuing to maintain substantial ties to New Zealand.

As their time spent in South Africa increased, uncertainty arose regarding whether they had inadvertently resumed South African tax residency or risked becoming tax resident through the physical presence test.

CONTACT DELANO FOR ASSISTANCE

WHAT WE ASSISTED WITH

Dual-Spouse Tax Residency Review

New Zealand Connection Analysis

Ordinarily Resident Test Assessment

Cross-Border Residency Advisory

How We Helped

Our specialist cross-border tax team conducted a detailed residency review for both spouses, examining their historical emigration, foreign citizenship, family circumstances, lifestyle patterns, overseas economic interests and ongoing connections to New Zealand.

Particular consideration was given to the ordinarily resident test, the physical presence test and the implications of spending extended periods in South Africa while maintaining an established life abroad.

Outcome

Following a comprehensive legal analysis, we concluded that neither spouse had resumed South African tax residency despite spending significant periods of time in South Africa. Separate residency opinions were prepared and SARS applications submitted to formally regularise their tax affairs. SARS subsequently confirmed both spouses as non-residents for South African tax purposes and issued Notices of Non-Resident Tax Status recognising their emigration from South Africa in 2008. This provided the couple with certainty regarding their South African tax position and enabled them to continue their internationally mobile lifestyle with confidence.

Client Feedback

“The process of confirming our non-resident tax status seemed daunting at first. Delano and his team guided us through every step, explained the technical issues in a practical and understandable manner, and provided confidence throughout the process. We were delighted to ultimately receive confirmation from SARS recognising our non-resident status and greatly appreciate the support we received.” – Dual South African & New Zealand Citizens

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