South Africans working and living abroad need to be prepared for the new amendments to the Income Tax Act, which come into effect from the 1st of March 2020.
Dubbed the ‘expat tax’, the amendments mean that South African tax residents working abroad will only be exempt from paying tax on the first R1.25 million they earn abroad. Thereafter they will be required to pay tax on any foreign earnings.
However, there is still a lot of confusion about who will be required to pay the tax and whether the tax can be avoided through financial emigration. Due to the complexity and the ramifications of not being compliant its best to seek the advice of a qualified tax practitioner.
The 1st period provisional tax deadline is around the corner, and the South African Revenue Services are even more keen on collecting taxes in the current economic climate.