From Businesstech: Several thousand South Africans are set to be impacted by new amendments to the Income Tax Act which will come into effect from 1 March 2020.
Currently, South African tax residents who render services outside the country on behalf of an employer for longer than 183 full days in any 12-month period can be granted an exemption on their income tax.
However, under the new rules set to be introduced in March, these South African will only receive a break on the first R1 million earned abroad. After this, you can be taxed according to South Africa’s own income tax system.
Speaking in an interview with CNBC Africa Tim Mertens, chairman of Sovereign Trust, said that while R1 million might seem like a high threshold, it is not much when considering the dollar ($67,936) or pound (£51,857) conversions.
He said that this amount will also include taxable fringe benefits such as housing, pension and travel allowances.
“(Taking these into account) it would seem that many people living overseas will be in excess of the amount and then be subject to South African tax.”
Mertens said that up to 100,000 South Africans live in Dubai alone and approximately 3,000 South African residents live in Hong Kong.
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