Page 38 - Gross Income class slides

GROSS INCOME

Example – determination of residence

Solution:

• a) Mr A will become a SA resident on 1 December. All his gross

income will be taxed in South Africa on a worldwide basis from 1

December of the current year till 28 February. He will be a non-

resident prior to 1 December. Any gross income earned from 1

March to 30 November will only be taxed in SA if it comes from a SA

source or is deemed to be from a SA source.

• b) Mr B will be a SA resident taxed on a worldwide basis from 1
March to 5 November. From the date that he emigrated to the UK,

he will be classified as a non-resident that will be taxed on a source

basis in SA. The physical presence test cannot be used when

someone has been ordinarily resident in the current tax year.

• c) Mr C will not be a SA resident. The physical presence test may
then be applied to determine if he is deemed to be a resident due to

the workings of the physical presence test
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