Today's Labour News

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southafricalogoFin24 reports that tax experts on Tuesday urged National Treasury to give careful consideration to the economic implications of repealing a provision that exempts certain South Africans who work overseas from paying tax in SA.  

They were addressing Parliament’s standing committee on finance on new tax proposals, one of the most controversial of which is to repeal the exemption that allows locals who work abroad for a period of longer than 183 days a year to pay tax in the country where they are working, and not in SA.  Treasury claims the exemption, which was introduced in 2001, has been abused and created the opportunity for some South Africans to not pay any tax at all – especially those living in low or no tax jurisdictions.  Among the points made were that the higher cost of living associated with living overseas should be taken into account; that South Africans working abroad would not receive a tax credit for making contributions to social security in the countries where they worked; and that a number of expats were maintaining two households.  In response, Treasury stated it would take the submissions and public comments into account before a decision was reached.  The new regulation is expected to be implemented in 2019.

  • Read this report by Liesl Peyper in full at Fin24
  • See too, Oorsese werkers pleit; tesourie sê hy sal luister, at Netwerk24 (limit on access)
  • And also, Reg om belasting op te dok vir oorsee werk, sê EFF, at Netwerk24
  • As well as, Parliament hears about 'fake' expat tax proposals, at Fin24

Get other news reports at the SA Labour News home page