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Lloyd says: 26 December 2016 at 16:53 If I work for a USA company and earn e.g. $65,000 per year and the company does not have a brand and or is not registered in South Africa, what is the tax process? I imagine - (please correct me). I receive full amount monthly and need to register as a provisional tax payer and pay SARS normal PAYE twice per year? Note I will not be traveling more than 183 days per year. Is there a possible benefit of registering a business and paying myself from the business a lower amount? |
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TaxTim says: 26 December 2016 at 18:31 Yes, you are correct - if the American company is not registered as an employer in South Africa, and therefore does not deduct PAYE from your salary, you will need to register as a provisional taxpayer and pay provisional tax twice per year on your earnings. Please read our blog on Provisional Tax for further clarification. There is significant red tape that goes along with registering a company which can be costly and time consuming. Please read our blog on the differences between a Sole prop and a Company. In addition, your company would most likely be viewed as a "Personal Service Provider" in which case it would be treated as an employee for tax purposes and would be subject to normal employees tax. A Personal Service Provider refers to a company which offers particular services (usually to one main client) and in reality it is the person providing the services who represents the company. |
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