EXPATRIATE TAX LIABILITY CALCULATION
Know and Plan For Any Tax Exposures.
The amendment to the South African “Expatriate Tax Exemption” law that came into effect from 1 March 2020 will have a tremendous impact on South African expatriates working in Africa. Many of these expatriates who are rotational workers are also in the unfortunate position where they cannot claim exemption through a DTA or by completing Financial Emigration and therefore would need advanced tax planning.
We offer streamlined and comprehensive calculation services, where you can determine your potential South African tax liability on foreign income and benefits, in order to understand the full impact of change in legislation and what would be legally payable to SARS.
The basic rule is that, should your affairs be planned well, you will normally not have to pay any additional taxes in South Africa. This is because of the way our system is structured and taking into account the various exemptions and relief available. Let us compute and plan your future taxes, ensuring you are safe and compliant while minimising your tax exposure.
Only “take-home” salary is considered for tax purposes.
One does not need to submit a tax return if they feel they “tax-exempt” under the physical presence test (known as the “days test”) and ordinarily resident test.
Fringe benefits such as housing allowance and school fees are not taken into consideration in one’s total package.
You are automatically “tax-exempt” if there is a DTA in place between South Africa and the host country.