South Africa currently applies a residence basis of taxation whereas before March 2001, it applied a source basis of taxation. Before March 2001, amounts were only subject to tax if they came from a South African source. The residence of the taxpayer was irrelevant. Now, the residence basis of taxation means that South African residents are taxable on their income whether that income has a South African source or not. In other words, they are liable for tax on their worldwide income. Non-residents, on the other hand, are still only subject to South African tax on income from a South African source.
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