Treasury risks forcing expats to choose between SA and overseas

Treasury risks forcing expats to choose between SA and overseas

Many South Africans who work overseas often return to South Africa to visit family and friends. However, a new law which comes in effect on the 1st of March 2020 will force expats to pay 45% of their income in taxes.

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly.co.za News on your News Feed!

Briefly.co.za learned that this would only affect those earning over R1million a year. An outcome of this is that expats may choose to immigrate financially from South Africa, cutting their ties with the country.

READ ALSO: Kelly Khumalo gushes about kids: 'My oven does wonders, look at them'

Simply moving overseas is not enough to escape paying tax, the current legislation views expats as ordinary residents because they intend to return to South Africa at some point.

Treasury hopes to fill the gaps in its revenue shortfall by taxing expats but it might have the unintended side effect of pushing expats away from South Africa for good.

READ ALSO: Mboweni's famous boots make a comeback: Ramaphosa's joined the club

The amendment which seeks to tax expats has been roundly met with criticism from expats and residents as the effects are more likely to be adverse than beneficial according to iol.co.za.

Briefly.co.za has learned recently that treasury has allocated R3.4 billion to get rid of pit toilets at schools.

Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!

Source: Briefly.co.za

Mailfire view pixel