Effective from 1 March 2020, the new legislative amendment states that South African tax residents abroad will be required to pay tax to South Africa of up to 45% of their foreign employment income, where it exceeds the R1,25m threshold.
Potentially affected tax residents are facing a plethora of misguided and inaccurate information when it comes to the correct application of the law. However, with the effective date drawing closer, it is crucial that South African expatriates as well as their employers come to grips with the looming “expat tax” and how it will affect them, in order to prevent potentially dire tax consequences.
This is where the controversy starts: How does one impose proper planning to attenuate the impact of #ExpatTax2020? The newly released title, Expatriate Tax: South African Citizens Working Abroad and Foreigners in South Africa, tackles common misconceptions and unpacks the resultant tax consequences of individuals or international employees with interests in multiple jurisdictions.