No escaping the tax man even if you work outside SA

South Africans working abroad will soon be taxed on their income as if they were living at home.

Finance Minister, Pravin Gordhan announced this in his budget review that, especially those working in tax-free countries like Dubai, will be held liable for tax.

Treasury says if a South African works in a foreign country for more than 183 days with no tax payable in the foreign country, that foreign employment income will benefit from double non taxation.

Ernie Lai King, head of tax at Hogan Lovells explained what this proposal would mean to a large South African diaspora.

If you are a tax resident in South Africa and you go and work overseas under an employment contract and spend 60 consecutive days outside the country in a 12 month period, previously you would not be taxed under SA's tax law but that is about to change.

Ernie Lai King, head of tax at Hogan Lovells

Listen below to hear more explanation on this proposal:


This article first appeared on CapeTalk : No escaping the tax man even if you work outside SA


Recommended

by NEWSROOM AI
Read More
Sars ready to cooperate with investigation into how it works

Sars ready to cooperate with investigation into how it works

The Tax Ombud, Judge Bernard Ngoepe, requested Finance Minister to approve an investigation into the issue of tax refund delays.

Trump's 2005 tax return papers leaked

Trump's 2005 tax return papers leaked

702's Stephen Grootes speaks to US correspondent Nadia Neophytou about what the leaked documents revealed.

LISTEN: Sars and Judge Dennis Davis battle it out

LISTEN: Sars and Judge Dennis Davis battle it out

South African Revenue Service launched an attack on Judge Davis saying he's undermining it's leadership and misleading the public.

Trade union calls on Sars to clamp down on customs fraud, illegal imports

Trade union calls on Sars to clamp down on customs fraud, illegal imports

Clothing and Textile Union Sactwu marched to the Sars offices in Pretoria against illegal imports that are hampering the industry.

Tax refund delays are not deliberate says tax expert

Tax refund delays are not deliberate says tax expert

Mark Kingon says Sars has already paid R155 billion which is 9% higher than the previous year.

NSFAS develops new tools to ease process of paying back the money

NSFAS develops new tools to ease process of paying back the money

NSFAS chairperson, Sizwe Nxasana, says the agency is developing tools to make it easy for past beneficiaries to pay back debt.

Popular articles
Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

Standard Bank takes on Capitec Bank with low-fee account, gigabytes of free data

The account costs R4.95 per month; you get 1GB of free data. Swipe 4 times a month; you get 0.5GB of free data and R50 airtime.

'You can easily get a 15% total return from a share like MultiChoice'

'You can easily get a 15% total return from a share like MultiChoice'

Is there an investment case for MultiChoice? Arabile Gumede interviews Jacques Plaut, a Portfolio Manager at Allan Gray.

Huawei users in SA told not to panic over Android ban

Huawei users in SA told not to panic over Android ban

Google is suspending its business relationship with Chinese smartphone manufacturer.

[WATCH] Eusebius delivers emotional obituary for Kaizer Chiefs

[WATCH] Eusebius delivers emotional obituary for Kaizer Chiefs

The Glamour Boys lost the Nedbank Cup final to underdogs TS Galaxy on Saturday.

'It is very clear that Ramaphosa is under attack from Magashule and others'

'It is very clear that Ramaphosa is under attack from Magashule and others'

News24 editor-in-chief Adriaan Basson says there is a definite fight back from the ANC secretary-general against the president.

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

A video of a young man kicking actor and former US governor Arnold Schwarzenegger in the back on Saturday in Joburg went viral.