EXPATS: 3 MONTHS LEFT UNTIL YOUR SECOND SARS PROVISIONAL TAX PAYMENT IS DUE!

South Africa’s “expat tax” came into effect 1 March 2020 and the deadline for the first payment to SARS was end of August. Where you missed the correct tax payment, the ‘system never forgets’ and you can expect a 20% penalty plus interest. However, the key to avoiding this is to move quickly before SARS issues late payment penalties.

If you missed your payment in August, let us help you with a Section 19 application and in doing so, reduce your tax debt and avoid penalties. Furthermore, and as part of our wider service offering, we will conduct a comprehensive tax calculation to ensure you know your exact tax liability so that you can plan for the second Provisional Tax payment due in February 2021.

COMMON MISCONCEPTIONS

  • Only “take-home” salary is considered for tax purposes.
  • One does not need to submit a tax return if they feel that they are “tax-exempt” under the physical presence test.
  • Fringe benefits such as housing allowance and school fees are not taken into consideration in one’s total package.
  • You are automatically “tax-exempt” if there is a DTA in place between South Africa and the host country.