- NORMAL TAXPAYER – SOUTH AFRICANS WORKING LOCALLY
- This category often comprises of taxpayers who are employed by one employer, who withholds monthly pay as you earn. Other items that will form part of their tax return will be medical aid, retirement annuity and travel allowance claim.
To ensure full compliance, such taxpayers will also need to register for income tax, and timeously submit income tax returns to avoid penalties and interest.
- Provisional tax is a preliminary bi-annual tax submission, which seeks to relieve the cashflow burden of an annual tax debt.
Any person who conducts a trade or earns additional income, that is not subject to any withholding tax must register as a provisional taxpayer.
It is not uncommon for SARS to “automatically” register people as provisional taxpayers; they are legally permitted to do so where the person should have registered themselves and failed to do so.
- SOUTH AFRICAN
- A number of expats are under the false impression that if they
leave South Africa, they are no longer required to file returns or do not need to declare their foreign income.
If you are a South African working abroad, you are legally required to submit tax returns to SARS every year and declare foreign earnings. Where applicable, certain expats will be able to claim an exemption on the foreign earnings, under section 10(1)(0) ii.
- FOREIGN NATIONALS
IN SOUTH AFRICA
- Expatriate employees coming to South Africa usually have a common pitfall in allowing their local employers to structure their packages like other local employees. This is seldom the best outcome for the expatriate or the employer.
As a non-resident you will pay tax on your South African source income. It is important to note that days worked outside South Africa are not taxable in South Africa.