Double Tax Agreement Between South Africa And Canada

Taxpayers must file their annual returns each year until a specific date. This date is set annually by the Minister of Finance in the government scoreboard and is usually between October and December. Tax returns must be filed by non-residents who receive gross income from South Africa above the tax threshold. Individuals seeking tax relief within the meaning of a double taxation agreement are required to file tax returns to claim such an exemption when the income exceeds the gross income threshold. Without the presentation and predisposition of a tax return, a short-term business traveller cannot benefit from such a discharge. I have not looked very carefully at the proposed new ex-Pat law, but there is no change the government can make to South African national laws that can amend or repeal the terms of the double taxation convention. They need to change the double taxation convention itself and get Canada to agree before it affects someone else who is considered a resident of Canada. Your status as a citizen, permanent resident, work permit, etc., is different and fiscally separate from your resident status. I know it might be laborious, but if it concerns you, I would really recommend starting with section 4 of the double taxation convention and looking carefully at the definition of a resident and determining whether South Africa or Canada considers you a resident for tax purposes (obviously the treaty is trying to formulate it in such a way that it must be one or the other). not both). If you live in both SA and Canada and your “vital interest” is in some way in both cases, you pay taxes to SA if you are only an SA national if you have a work permit or if you have permanent residence in Canada (i.e. unless you are physically working in both countries , in which case you could pay taxes to both).

The above navigation area can be used to access the texts of the corresponding agreements. South Africa does not have a social security system as such. However, similar contributions apply, for example. B unemployment insurance contributions (1 per cent for the employer, 1 per cent for the employee, capped), contributions for qualification (1 per cent for the employer, not capped) and compensatory wage contributions (rates varying by branch). South Africa has not entered into totalization agreements. There will probably be no impact. The reason for this is the double taxation convention between Canada and South Africa. If you have to decide in which country you must pay taxes, you must first review the terms of the contract to determine the country in which you reside.

The rules of the treaty prevail over the national laws of one of the two countries, so that even if South Africa changes its own laws, it does not affect the treaty. The problem arises when they amend the treaty, which they do not foresee at the moment, as far as I know. So, according to the treaty, if you are somehow considered a residence of Canada and South Africa, then you will be as a residence in Canada only if you have a permanent homeland in Canada and not in South Africa, for the purposes of the treaty. This means you just have to pay taxes in Canada. Regardless of whether SA considers you a resident, if you have a home in Canada and not in SA, you are only considered a resident of Canada if you decide where to pay your taxes.

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