Non-resident migrant worker filing early ITR12 due to their return to home country
15 January 2015
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: The taxpayer is a non-resident and is native to India. Their work permit
has expired and they are due to return to India. I note that one can submit a
tax return prior to the commencement of the tax season in three instances;
death of the taxpayer, insolvency of the taxpayer, and emigration of the
taxpayer. Will the taxpayer's circumstances be considered 'emigration' for the
purposes of submitting a tax return prior to the opening of the tax season?
The primary reason for wanting to submit the tax return prior to the
commencement of the tax filing season is that the taxpayer's South African bank
accounts will be inaccessible following his departure from South Africa and it
is anticipated that there will be a refund of taxes due to him. When a migrant
worker is due to leave South Africa and return to their native country, does
this constitute emigration for tax compliance purposes and can he submit his
tax return prior to the date of submission?
A: With regards to
the query it is our view that emigration pertains to leaving SA as your native
land to permanently reside in another country which in SA my include applying
to the SA Reserve Bank to emigrate and exist your assets. Though in SA it does
not mean that you have to relinquish your citizenship.
In our view the returning of an Indian citizen and tax resident after
temporary stay in SA does not constitute emigration. Such persons would
therefore be liable to file tax returns in the normal cycle after the end of
the tax year.
Disclaimer: Nothing in this
query and answer should be construed as constituting tax advice or a tax
opinion. An expert should be consulted for advice based on the facts and
circumstances of each transaction/case. Even though great care has been taken
to ensure the accuracy of the answer, SAIT do not accept any responsibility for
consequences of decisions taken based on this query and answer. It remains your
own responsibility to consult the relevant primary resources when taking a