[LISTEN] What you need to know about expat tax
Amendments to the Income Tax Act will soon see all South Africans working outside the country’s borders contribute to the fiscus from 1 March.
Currently, South Africans working outside the country’s borders for more than 183 days are exempted from paying tax to their home country.
The amendment will now see a cap of R1 million, which means that everything earned from R1 million is no longer exempt and is actually taxable in South Africa.
Does this mean expats will have to pay twice - in their home country and in their country of employment?
Joanne Joseph spoke to Tax Consulting SA's legal manager of expatriate tax Jonty Leon to find out more.
You have to look at each situation. In certain countries we do have double taxation agreements between South Africa and that foreign jurisdiction and in those instances where you can meet the requirements, you are able to ensure that you are not double taxed.Jonty Leon, Legal manager of expatriate tax - Tax Consulting SA
Leon says some South Africans are in a catch-22 situation and may opt to move back home while others may cut all ties with the country.
He lists some of the other options South Africans abroad may have.
Financial emigration formalises your status as a non-resident for tax and exchange control purposes and as a non-resident, you are not taxable on that foreign income. That's one of the big options.Jonty Leon, Legal manager of expatriate tax - Tax Consulting SA
Another big one is making use of a double taxation agreement where there is one in place with the foreign jurisdiction. There are also certain requirements that need to be met for that.Jonty Leon, Legal manager of expatriate tax - Tax Consulting SA
To meet one of the requirements you can't have one spouse living in South Africa and the other in the foreign jurisdiction.Jonty Leon, Legal manager of expatriate tax - Tax Consulting SA
Click on the link below to hear the full interview...
Trade Collective economist Lebogang Pheko says Ekurhuleni is a huge city that has done its best to meet many challenges.Read More
Executive director at Institute For Security Studies Dr Cilliers says there should be a clear separation between party and stateRead More
Eyewitness News reporter Veronica Makhoali says police have confirmed that they were involved in high-end jewellery robberies.Read More
The government will be introducing coding and robotics to enable children to function, find employment and create jobs.Read More
Prof Adrian Puren says we must understand that people are still getting infected and dying because of COVID-19.Read More
Outa's Stefanie Fick urges the speedy investigation of allegations against the suspended COO of the National Lotteries Commission.Read More
Dr Karin van der Merwe says people must not drop their guards and the elderly and the and vulnerable must maintain their distance.Read More
Hawks spokesperson Brigadier Hangwani Mulaudzi says they are expecting more arrests to be made as they have found information.Read More
Journalist Carlos Amato says we need to reassess the way the state has been dealing with the alcohol industry for many years.Read More
When banking was declared an essential service, for her that really cut deep, making her realise they help with the economy.Read More