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Amendments to the Earnings Tax Act will quickly see all South Africans working exterior the nation’s borders contribute to the fiscus from 1 March.

At the moment, South Africans working exterior the nation’s borders for greater than 183 days are exempted from paying tax to their residence nation.

The modification will now see a cap of R1 million, which implies that all the things earned from R1 million is now not exempt and is definitely taxable in South Africa.

Does this imply expats should pay twice – of their residence nation and of their nation of employment?

Joanne Joseph spoke to Tax Consulting SA’s authorized supervisor of expatriate tax Jonty Leon to seek out out extra.

It’s important to take a look at every scenario. In sure international locations we do have double taxation agreements between South Africa and that international jurisdiction and in these situations the place you possibly can meet the necessities, you’ll be able to guarantee that you’re not double taxed.

Jonty Leon, Authorized supervisor of expatriate tax – Tax Consulting SA

Leon says some South Africans are in a catch-22 scenario and should choose to maneuver again residence whereas others might minimize all ties with the nation.

He lists a number of the different choices South Africans overseas might have.

Monetary emigration formalises your standing as a non-resident for tax and trade management functions and as a non-resident, you aren’t taxable on that international revenue. That is one of many large choices.

Jonty Leon, Authorized supervisor of expatriate tax – Tax Consulting SA

One other large one is making use of a double taxation settlement the place there may be one in place with the international jurisdiction. There are additionally sure necessities that must be met for that. For example you’ve got to have one partner residing overseas and incomes that revenue and the opposite partner residing in South Africa.

Jonty Leon, Authorized supervisor of expatriate tax – Tax Consulting SA

Click on on the hyperlink beneath to listen to the complete interview…


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