Do expats pay tax in South Africa?


Yes, expats do pay tax in South Africa. The South African Revenue Service (SARS) requires all residents to file a tax return, regardless of whether they are employed or not. This includes expatriates who have come to work in South Africa on a temporary basis.

The tax rates in South Africa are progressive, which means that the more you earn, the higher your tax rate will be. However, there are a number of tax deductions and tax rebates that can reduce your tax liability.

If you are employed, your employer will deduct tax from your salary at the relevant tax rate. This is known as PAYE (Pay As You Earn).

If you are self-employed, you will need to register with SARS and file a tax return on a quarterly basis.

There are a number of tax incentives for expatriates who work in South Africa. These include the Foreign Employment Income Exclusion (FEIE) and the Foreign Tax Credit (FTC).

The FEIE allows you to exclude a certain amount of your foreign employment income from tax. The FTC allows you to offset any foreign taxes paid on your employment income against your South African tax liability.

If you are planning to move to South Africa, it is advisable to seek professional tax advice to ensure that you are aware of your tax obligations.

Yes, expats are required to pay tax in South Africa. This includes income tax, capital gains tax, and value-added tax (VAT). Income tax is levied on your worldwide income, so if you are employed in South Africa, you will be taxed on your salary. Capital gains tax is payable on any profits you make from selling assets such as property or shares. VAT is a consumption tax that is charged on most goods and services.


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