Page 43 - Gross Income class slides
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GROSS INCOME
Example – application of physical
presence test
Solution:
e) As per part a, Mr A will be a SA resident. He will submit a tax return as a
resident for the whole tax year. However the residency will be deemed to end
on 15 January 20X7 if he is outside SA for a continuous period of 330 days from
15 January 20X7. He did not come back to SA during the entire 20X8 tax year
and as such he was away for a continuous period of 330 days. Once he can
prove he did not return for 330 days, he can apply to change those details on
his tax return so that his residency is deemed to end on 15 January 20X7.He will
be a resident from 1 March 20X6 to 15 January 20X7.
f) As Mr A returned to SA prior to the 330 day period ending, Mr A will be
treated as a resident for the entire 20X7 tax year from 1 March 20X6 to 28
February 20X7. (In part e, he was only a resident from 1 March 20X6 to 15
January 20X7). He will not be classified as a resident for the 20X8 tax year as he
was not present for a period exceeding 91 days in SA for the 20X8 tax year.
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