Tax proposal on foreign income a blow for expats

THE news that amendments to the tax laws will remove the income tax exemption on South Africans working overseas has come as a blow to expatriates and their employers. However, it must be borne in mind that the amendments are not final and considerable discussion will take place before they are implemented.

Even if the amendments are implemented in their current form, there are some measures expats may be able to take to avoid paying full tax as if they were working in South Africa, and even paying double tax – both to the South African Revenue Service (Sars) and to the country in which they are working.

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