Employees earning more than a MILLION to folk out more into SARS's coffers!

In this week's TAX TALK. We are going to delve briefly into the new tax change that will take effect from March 2020. This amendment affects South African expats working abroad. 

When a South African earns income that is more than R1 million for rendering services abroad. The amount that is greater than R1 million will be subject to tax of up to 45% as per SA's Income Tax law amendment that will take effect from March 2020, thus affecting the 2021 year of assessment which ends on the 28th of February 2021.

Freelancers getting clients abroad are not affected by this law of tax as of today.

Example:

(Amount Earned Abroad)- ( The 1 Million threshold)* 45% = Tax payable to SARS

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To learn more about this tax amendment , read these articles; 
https://www.dailymaverick.co.za/article/2019-09-03-expat-tax-will-damage-sa-economy/

https://www.fin24.com/Money/Tax/sa-expat-tax-law-how-to-avoid-sars-clamp-down-on-expat-income-20190120