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
You made a huge mistake downloading FaceApp if your privacy is important to you

You made a huge mistake downloading FaceApp if your privacy is important to you

Washington Post technology columnist Geoffrey A. Fowler did a forensic analysis of the Russia-based app. Check it out.

Woolworths (at R40 a cup!) makes the best takeaway hot chocolate in South Africa

Woolworths (at R40 a cup!) makes the best takeaway hot chocolate in South Africa

Seattle Coffee Company has the worst takeaway hot chocolate in the country, according to, uhm, "research" by Chaos Theory.

Old Mutual and Trevor Manuel are victimising Peter Moyo - Advocate Dali Mpofu

Old Mutual and Trevor Manuel are victimising Peter Moyo - Advocate Dali Mpofu

The Money Show's Bruce Whitfield interviews TJ Strydom, a journalist at Business Day and author of Christo Wiese’s biography.

How to buy a new car even if you don’t really have enough money for it

How to buy a new car even if you don’t really have enough money for it

South Africans are increasingly buying cars they can’t afford using balloon payments, says consumer journalist Wendy Knowler.

Need a loan to grow your small business? There’s a pot of money waiting

Need a loan to grow your small business? There’s a pot of money waiting

Spartan SME Finance provides finance for small businesses. Bruce Whitfield interviews its CEO, Kumaran Padayachee.

The rand isn't weak. It's the dollar that's strong. But it won't stay that way

The rand isn't weak. It's the dollar that's strong. But it won't stay that way

The rand is trading at fair value. It’s the US dollar that's overvalued. Bruce Whitfield interviews George Glynos (ETM Analytics).

Public Protector has now become a "rogue unit", says Judge Kriegler

Public Protector has now become a "rogue unit", says Judge Kriegler

Busisiwe Mkhwebane is reportedly probing President Cyril Ramaphosa for alleged money laundering to the tune of R400m.