EXPATS BE PREPARED
FIRST TAX PAYMENT DUE TO SARS IN AUGUST 2020

Following SARS’ media statement on 5 May 2020, it is clear that revenue collection is under immense pressure. SARS has made it clear they will aggressively target SAFFAs working abroad to make up for the massive budget deficit with ‘expat tax’ coming into effect on 1 March 2020.

We are the largest independent tax practice in South Africa, having represented the Expatriate Petition Group in Parliament and credited with the R1,25m exemption. Thus, we have deep experience in offering cost-effective solutions, but always keeping you safe from SARS and legal prosecution. Our expatriate calculation service ensures you know your liability and forms the basis for any planning needed ahead of your timely 1st payment of expatriate tax in August 2020.

COMMON MISCONCEPTIONS

  • Only “take-home” salary is considered for tax purposes.
  • One does not need to submit a tax return if they feel they “tax-exempt” under the physical presence test (known as the “days test”) and ordinarily resident 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.