SARS EYES OFFSHORE ASSETS, FOREIGN INCOME AND BANK ACCOUNTS Following SARS’ media statement on 5 May 2020, it is clear that revenue collection is under immense pressure with an expected collection shortfall of between 15% – 20%. With the number of taxpayers able to contribute to the fiscus dwindling, SARS will have to look to…
With the first provisional tax payment being due on 31 August 2020, there is some confusion regarding whether expatriates are deemed to be provisional taxpayers by the South African Revenue Service (SARS) or not. Reabetswe Moloi, Expatriate Tax Attorney at Tax Consulting SA, says that an expatriate may be regarded as a provisional taxpayer if…
On 5 May 2020, the Commissioner for SARS made a profound media statement, which gave a detailed account of projected revenue collection in light of the COVID-19 crisis, but also gave valuable insight of what we can expect from SARS in coming months. The most important aspects of the address can be unpacked as follows:…
Following the most recent presidential address, it is clear that South Africa’s borders are going to remain closed for non-essential travel, at least for the time being. This being among the plethora of commitments and measures put in place to prepare for the spread of the coronavirus and save lives. South Africa is not alone…
INCLUDING CHANGES FOR CARS, THE CURFEW AND WORKERS Government has published more than a dozen new directives around South Africa’s lockdown regulations since the official introduction of level 4 restrictions on Friday (1 May). These directives seek to clarify issues around the new restrictions as well as how the new rules will impact specific sectors…
Here comes the rain again With 1 March 2020 being the sunrise of the expatriate tax, the first tax payment will become due 31 August 2020. With the first provisional tax payment being due on 31 August 2020, there is some confusion regarding whether expatriates should be provisional taxpayers or not. This confusion is, of…
SOUTH AFRICAN EXPATRIATES The amendment to the expat tax exemption that came into effect 1 March 2020 will have a tremendous impact on both employers and employees respectively. We have consulted with some of the largest corporate groups in South Africa as well as in places such as Democratic Republic of Congo, Mauritius and the…
South Africa Bleeding Skills Not surprisingly, there has been an outflow of South Africans in recent years for various reasons, a top reason being the punitive “expat tax” regime promulgated in December 2017, and effective 1 March 2020. Financial emigration being the main process being used to avoid this tax, as it placed one formally…
In December 2017, the change to the foreign employment income exemption was promulgated into law. This has widely become known as the “expat tax”. The exemption at that point was capped at R1mil, meaning that South African tax residents earning foreign employment income above this threshold would no longer be exempt from tax in South…
Amendments to the Income Tax Act will soon see all South Africans working outside the country’s borders contribute to the fiscus from 1 March. Currently, South Africans working outside the country’s borders for more than 183 days are exempted from paying tax to their home country. The amendment will now see a cap of R1…
