USING A DOUBLE TAX AGREEMENT (DTA) TO PROTECT YOUR FOREIGN INCOME

The amended South African tax law is now in full effect as of 1 March 2020. Where you have international economic interests, your income may potentially subject to tax both in South Africa as well as in the foreign country, resulting in double taxation. A common misconception we see among South African expats is that they believe they are “automatically tax-exempt” just because there is double taxation treaty in place between the two countries. This is completely wrong and there are various factors that need to be considered, and objectively proven, and you are still required by law to file a tax return and “claim” exemption under treaty relief.