South Africans have always been keen to work and live abroad, and this trend looks set to strengthen as the country’s political and economic fortunes remain precarious.A recent study shows that even with the rise of digital working, 59% of South Africans (56% of young people and 61% of highly educated people) are willing to relocate.
South Africans living or working abroad can no longer avoid the long arm of SARS. Under pressure to meet its revenue quotas, the tax authority has started auditing the country’s non-compliant expatriates in earnest. “We have been warning expatriates that this was coming and now that it’s here, the time for hiding one’s head in...
The new ‘Expat Tax’ to be imposed on nearly a million South Africans working abroad from 1 March 2020 is an onerous tax likely to penalise even people who no longer have anything to do with the country – but there is a legal way to reduce it.
By Joon Chong, a Partner and Wesley Grimm, an Associate (assisted by Jayshall Vassen) at Webber Wentzel. Some South African tax residents working abroad, often referred to as “expats”, are grumbling about changes to the Income Tax Act, 1962 (the Act) which comes into effect on 1 March 2020.
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