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: