South Africans who work overseas could soon be taxed locally for foreign earnings from 1 March 2019 if a new planned legislation is passed through Parliament.
The news comes as National Treasury is reportedly planning to repeal a tax exemption on income earned by South Africans working overseas.
Tertius Troost is a Tax consultant at Mazars and explains that the employment income tax exemption is there for people who work abroad for a period of more than 183 days because they are South African tax residents.
This is to stop them having to pay tax twice.— Tertius Troost, Tax consultant at Mazars
Treasury thought it would be nice to give us an exemption.— Tertius Troost, Tax consultant at Mazars
Troost says the proposed amendment was announced by former finance minister, Pravin Gordhan during his February budget speech.
As things stand, they are taking the exemption away in its entirety and therefore all individuals that are South African residents working abroad will be affected.
The draft bill is open for public comment until August 18 2017.