South Africa’s New Expat Tax Law Could Have Devastating Impacts

South Africa has confirmed that it is forging ahead with its plans to introduce an ‘expat tax’ amendment to the South African Income Tax Act by March 2020.

At the moment, South Africans working abroad for more than 183 days (of which 60 days are consecutive) were able to earn income free of South African tax. However, with the amendment, South Africans will be required to pay tax in SA of up to 45% of their foreign employment income once it exceeds R1 million (approximately $75,000) per annum.