Geshy Reddy

Many individuals work overseas to experience joys of travel, to gain varied work experience and of course for the greater earning potential.

Currently, South African residents who work overseas for more than 183 days and are over certain thresholds don’t pay tax on their foreign income.

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However, these individuals may be taxed natively on their income.

Due to high income earners manipulating these ambiguities, the National Treasury’s ‘Draft Rates and Monetary Amounts and Amendment of Revenues Laws Bill’ has proposed to do away with the current tax allowance.

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Some expats pay minimal tax in foreign countries but enjoy the 45 percent tax exemptions locally despite being South African residents.
It is not likely that this amendment will occur in the 2017 or 2018 fiscal year but the change is expected.

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