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TaxTim says: 9 May 2013 at 12:37 Firstly thank you for your complimentary words! You will never have to pay tax twice on the same income, if the Taiwanese company withholds 18% before paying you the amount owed then this tax already paid will go towards your South African tax. In your case of earning, lets say R120 000, for the year you will actually not have to pay South African tax as the 18% withheld exceeds the amount of overall tax paid in SA on that level of income. Basically SARS allows a tax credit/rebate of any taxes paid in another country for income earned against South African tax. You must get a certificate or some document proving this. |
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Reyno says: 9 May 2013 at 13:20 Thanks for the great reply, it's very helpful. That's really good news. I will be getting a tax document from the Taiwanese company, I'm not sure if it's monthly or annually yet. So, I just submit this with my tax return form? (Of course with the help of Tim early next year.) |
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TaxTim says: 9 May 2013 at 14:49 Only a pleasure! When you complete your return you will be asked for foreign earnings and then the taxes paid (Tim will guide you through this). Only if SARS asks for verification of documents will you be required to submit the letter, but it is best to have it just in case. |
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Reyno says: 9 May 2013 at 16:37 Thanks again. |
