The demise of the special voluntary disclosure programme comes as South Africans around the world are fighting against plans to introduce a citizen-based taxation system.
The South African government announced in February 2017 that it would scrap a tax exemption on overseas earnings and implement a new system to tax citizens living and working overseas in low or no tax jurisdictions.
Tax credits, however, will be applied for any foreign taxes paid, meaning that those working in low income tax jurisdiction would have a lower rate of tax to pay in South Africa than those in no income tax jurisdictions.
For example, if a person falls into South Africa’s 45% tax bracket and pays 25% tax in a foreign country, they would pay the 20% difference to Sars.
A consultation document is open for public comment until 18 August, with the changes scheduled to come into effect from March 2019.
The proposals have seen action groups spring up around the world, with one led by Abu Dhabi-based Barry Pretorius launching a petition to stop the changes coming into effect.
South Africans living in no tax jurisdictions, such as the UAE, are expected to be among the hardest hit, with no tax credits available for the higher cost of living or other taxes, such as UAE’s the soon-to-be-introduced VAT.
