With the festive season upon us, many South Africans are returning dwelling from working overseas to benefit from the holidays with their buddies and households.
Nevertheless, they might be travelling again within the new 12 months with an additional burden. With impact from 1 March 2020, South African residents working overseas (expats) can be required to pay as much as 45p.c in taxes to the SA Income Providers on their foreign-earned revenue, the place such revenue exceeds the R1 million threshold in that 12 months of evaluation.
South Africa has a residence-based tax system. Because of this residents are taxed on their worldwide revenue, and non-residents are solely taxed on their precise or deemed South African sourced revenue. A resident, for tax functions, is somebody who’s both ordinarily resident within the nation or bodily current within the nation for a specified interval.