New Expat law changes will affect South Africans from 1 March

New Expat law changes will affect South Africans from 1 March

- South Africans who have opted to live and work abroad can expect to fork over more after amendments to the Income Tax Act

- The changes take effect from 1 March, but many are bracing themselves ahead of its introduction

- The National Treasury and the South African Revenue Service recently announced the implementation of the changes

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Citizens who work and live overseas will be subjected to amendments to the Income Tax Act, commonly known as 'ex-pat tax'.

IOL reports that National Treasury and the South African Revenue Service announced some huge changes in the tax exemption on expatriates, with the new legislation taking affect inMarch.

Briefly.co.za gathered that South Africans will only be exempt from paying tax on the first R1 million they earn abroad, with anything over this amount subjected to taxation.

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Tax residents who work outside of the country for more than 183 days annually would be granted an exemption.

BusinessLIVE spoke to Garlicke & Bousfield director Graeme Palmer, who explained only citizens who reside in SA but live and work abroad would be affected:

“It is important for expatriates to understand that the exemption only applies to South African tax residents working abroad. These are persons who are still ordinarily resident in South Africa or have been physically present in South Africa for a statutory specified number of days each year over a five year period."

This means that citizens who have opted to permanently move abroad would not be affected:

“Expatriates who have been living abroad for many years or who have emigrated are unlikely to be affected by this law. They will only pay tax in the country where they now live and are employed.”

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Source: Briefly.co.za

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