The above should be negotiated before the expatriate’s employment agreement is signed. Special clauses to give legal effect to the above should be considered and this must be part of the final expatriate agreement. The practice of giving one letter of employment initially, another for the work permit application and then a final one for the tax consequences does not work. Professional tax filing assistance is also a must-have for an expatriate employee. Proper planning and tax preparation really can save a not insignificant amount of taxes.
There is quite a bit more to say about expatriate employees in South Africa. For more information contact us here.
US Expatriates Tax Guide 2018
All US Expatriates working in South Africa who need assistance with their US-related tax queries, i.e. Tax Returns, FBAR (FinCEN 114), FATCA (Foreign Account Tax Compliance Act) and when to file their taxes, can visit Taxes for Expats for professional assistance and access to a detailed US expatriates tax guide for 2018.