South African citizens who are working abroad will be required to pay tax of up to 45% of their foreign employment income as of 2020. This as SARS implements a new amendment for SA citizens who are abroad on the double taxation agreements.
The Double Taxation Agreements have been divided into two groups to make navigation easier between Africa and rest of world.
Managing Director and Tax advisory at the Geneva Management Group Ruaan van Eeden explains how the double agreement works.
“Most double tax agreements allow for the source country (the country a person is based in) to have full taxing rights, if a person spends at least more than 183 days in that country. From a South African perspective, tax payers find themselves in a position where the taxing right in a specific country one works, however, there’s still an obligation for you to declare your income in South Africa and this is where a lot of taxpayers working on offshore miss the point,” explains van Eeden.
Listen to interview below:
