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I will be leaving for Malaysia on 20 August 2013 for an undefined period but for at least three years. So according to the SA-Malaysia double tax arrangement I will be a Malaysian tax resident and subsequently a South African non-resident for tax purposes.
Does the above still hold if, even though I will be working and earning income in Malaysia, I will be paid in Rands in South Africa i.e.my employer will pay me in my South African bank account for the work done in its Malaysia subsidiary.
There is a section in the tax act - s10(1)(o)(ii) which deals with this specific circumstance whereby income earned from working for an employer in another country under contract will attrat tax in that specific country and not in SA regardless of resdency. It sounds as if you would fall into this part of the law and therefore you won't have to pay tax in SA, but in Malaysia.
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