SARS have also shown very little mercy to South Africans abroad, and we have seen more aggressiveness in expatriate audits, revenue collection and penalties for non-compliance.
The questions often raised by many South Africans working abroad is “How will SARS find me? However, SARS started a dedicated ‘Foreign Employment’ unit to execute on the mandate to target expats and this, in most cases, triggers an audit on the taxpayers affairs.
As part of our wider service offering, we will conduct a comprehensive tax calculation to ensure you know your exact tax liability so that you can plan for the first Provisional Tax payment due August 2021.
- Only “take-home” salary is considered for tax purposes.
- One does not need to submit a tax return if they feel they “tax-exempt” under the physical presence test (known as the “days test”) and ordinarily resident test.
- Fringe benefits such as housing allowance and school fees are not taken into consideration in one’s total package.
- You are automatically “tax-exempt” if there is a DTA in place between South Africa and the host country.