Tax in South Africa just got more complex

placing contractors in Africa

10th October 2018

As we mentioned earlier this year, the African continent is truly a destination that holds multiple opportunities for contractors both professionally and personally. However, tax and compliance across this region is not without challenges.

Tax confusion rife

In fact, according to recent reports, there is a worrying level of confusion amongst many expats operating in South Africa in light of proposed changes to tax residency requirements. Following back-lash against its original proposals last year, the Treasury revised plans to tax residents working abroad for more than 183 days of the year (of which 60 days are continuous) so that the first R1 million (US$69,018) of foreign remuneration would be tax-exempt.

Much of the concerns around these proposals – which are due to come into effect in 2020 – lie in the definition of ‘tax residency’ with some individuals wrongly assuming that they don’t fall into this bracket if they are working abroad for more than 183 days per year.

Get expert advice

This latest development adds just another complex level of compliance to what is already a tricky minefield for contractors to navigate. Professionals pursuing opportunities across Africa face a raft of nuances from country to country, with some locations easier to operate in than others. And for those with experience in one African location, it is all too easy to be lulled into a false sense of security when, in fact, compliance requirements can vary hugely from one place to the next.

Of course, one of the most secure ways to reduce the risks of working as a contractor internationally is to ensure you have a team of experts behind you. Contact our specialist advisors today to find out how we can help you.

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