A client with strong business and personal ties to both Botswana and South Africa sought guidance on tax residency and asset structuring following a relocation. The client and her spouse had historically resided in Botswana but, due to personal and professional circumstances, one spouse relocated permanently to South Africa a few years before while the other continued to divide time between both countries. With significant assets held in multiple jurisdictions, the client required a strategic approach to tax residency classification and asset structuring to ensure compliance with both tax jurisdictions while optimising tax efficiency.
Determination of Tax Residency – Applying the ‘ordinarily resident’ test in both countries while also considering the double taxation agreement (DTA) between Botswana and South Africa, it was established that one spouse is now tax resident in South Africa, whereas the other maintains Botswana tax residency, despite periodic stays in South Africa.
The restructuring has positioned the client for fiscal stability while maintaining flexibility for future tax planning and residency decisions.
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