Johannesburg – If planned new legislation goes through Parliament, South Africans who work overseas could be taxed locally for foreign earnings from March 1 2019.
This comes as National Treasury plans to repeal a tax exemption on income earned by South Africans working overseas.
Treasury issued two draft bills for public comment on Wednesday. The bills, the 2017 Taxation Laws Amendment Bill and the 2017 Draft Tax Administration Laws Amendment Bill, give effect to tax proposals announced on February 22 by former finance minister Pravin Gordhan at the 2017 National Budget, explained Yanga Mputa, chief director legal tax design.
The bills deal with “complex” and “administrative” matters and do not include matters of the draft rates bill.
The public has until August 18 2017 to comment on the bills, before Treasury and the South African Revenue Service (SARS) introduce them to Parliament.
Proposals of the Taxation Laws Amendment Bill include the removal of the foreign employment income tax exemption for South African citizens.
Mputa explained to Fin24 that the exemption was introduced to prevent double taxation of South African residents working outside the country for more than 183 days.
Read more at (article taken from): http://www.fin24.com/Money/Tax/double-tax-may-be-on-cards-for-south-africans-who-work-overseas-20170720