International tax & business 2018

Foreign income legislation affects South African expatriates

Source: Taxation In Australia Journal Article

Published Date: 1 Aug 2018


The increase in global mobility assignments and employment is resulting in more cross-border employment activity for South African tax residents. Some international assignments turn into longer-term assignments and ultimately to localisation in the host country such as Australia. A recent legislative amendment to the South African Income Tax Act No. 58 of 1962 impacts the foreign remuneration exemption South African taxpayers made use of when rendering services cross border. This amendment will see many South African nationals working abroad ascertaining their tax residence positions and possibly considering financial emigration. A large number of outbound expatriate employees may therefore cease to be regarded as South African tax and in certain instances exchange control residents. This article discusses who will be affected and how they will be affected. This article will include the impact of the amendment for the employer as well as the personal income tax considerations for the South African tax resident individual.


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International tax & business 2018

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