ExpatBriefing: South African Expats Face Higher Tax Bills

By Dex Tennyson, for ExpatBriefing.com 03 August, 2017

Concerns have been expressed regarding the South African Government's plans to remove the 183-day foreign earned income exemption for expats working outside of the country.

The South African Revenue Service and the National Treasury on July 19 released for public comment draft legislation that would give effect to the tax proposals announced in the February Budget, including the removal of the foreign employment income tax exemption.

Under current rules, where a South African worker is outside the country for 183 days in a 12-month period, income earned and taxed overseas is not subject to tax in South Africa.

However, the Treasury has found that this can result in double non-taxation of income, where the expat employee is working in a low or no tax jurisdiction. It has therefore signaled its intention to clamp down on abuse in this area but said tax credits will be available to ensure compliant taxpayers do not face double taxation as a result of the proposed change.

Tags: Expatriates | South Africa | Compliance | Tax | Tax Compliance | Tax Avoidance | Tax Credits | Legislation | Expats | Africa |