The 2017 Draft Taxation Laws Amendment Bill and the 2017 Draft Tax Administration Laws Amendment Bill have been published by the National Treasury and the South African Revenue Service (SARS) on 19 July 2017.
An important change is proposed for South African residents working abroad:
The current exemption applicable to South African residents working in a foreign country for more than 183 days in a year, in terms whereof the employment income earned by them is tax exempt in South Africa, is to be repealed.
The draft bill proposes to tax all South African residents on foreign employment income earned in respect of services rendered outside South Africa with relief from foreign taxes paid on the income under section 6quat of the Act.
The proposed repeal of section 10(1)(o)(ii) will come into effect on 1 March 2019 and will be applicable in respect of years of assessment commencing on or after that date.
If you need to know more on the implications for yourself, please contact our Tax Specialists, Petri Westraadt (pwestraadt@bkaudit.co.za.dedi1019.jnb1.host-h.net), for more detail.