An amendment to the South African Income Tax Act, which will have hard-hitting consequences for South Africans working outside South Africa, will come into force in March 2020. South Africans earning an income abroad will now be forced to consider their options.
Up until now, South Africans working abroad for more than 183 days (of which 60 days are consecutive) were able to earn income free of South African tax. Since the enactment of this amendment, South Africans are now required to pay tax in SA of up to 45% of their foreign employment income once it exceeds R1 million (approx. US$75 000) per annum.
Coreen van der Merwe, MD at Sovereign Trust (SA) Limited, talks to Classic Business Breakfast with Moneyweb about the implications of expat tax.