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:


Recommended

by NEWSROOM AI

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

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.

Tax Ombud can help you deal with Sars

Tax Ombud can help you deal with Sars

The Tax Ombud provides you with a simple way to seek a resolution for a dispute you have already tried to resolve with Sars.

Popular articles
'The Suzuki Dzire is the perfect day-to-day runaround car' - Jacob Moshokoa

'The Suzuki Dzire is the perfect day-to-day runaround car' - Jacob Moshokoa

In the car feature, automotive journalist Jacob Moshokoa chats about his experience driving around with the Suzuki Dzire.

[LISTEN] Codeine addiction and abuse

[LISTEN] Codeine addiction and abuse

Member of the SASOP, Dr Eugene Allers chats about the causes behind addiction to over the counter medication.

Signs your jealousy may be getting unhealthy

Signs your jealousy may be getting unhealthy

Managing jealousy has become increasingly important, particularly with the evolving structure of modern relationships says Dr Eve.

Survivor winner Tom Swartz vows to buy his wife 'new boobies and a family house'

Survivor winner Tom Swartz vows to buy his wife 'new boobies and a family house'

Swartz says he would have done anything to get the R1 million prize money.

'There is no way Magnus Malan could've done the things he is accused of'

'There is no way Magnus Malan could've done the things he is accused of'

Former police minister Adriaan Vlok has rejected accusations that former minister Malan was at the centre of a paedophile ring.