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Income in SA and paid overseas by SA company

Posted 13 July 2013 under Tax Q&A


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Hi Tim

Your service is very helpful thank you!

I am an SA permanent resident spending 3-4 months per year in SA.

I have rental income from property in SA paid into my SA bank account.

I am also paid as an independent contractor by an SA company directly into my overseas bank account.

On my tax return:
I will claim the SA rental income and expenses.
Do I also declare the other income as foreign income with the associated overseas tax paid on it?

Thanks in advance!

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TaxTim TaxTim says:
15 July 2013 at 12:53

Always glad to hear we are helpful!

For your earnings, as you are in SA less than 183 days of the year and being paid from a foreign company into a foreign account you do not pay tax on those earnings so this will not need to be declared. Just to clarify though, how long have you been coming to SA for?

The rental income and expenses you will claim on the return - do they net you an amount over R63 556 for the 2013 tax year?

Kim says:
15 July 2013 at 19:31

Hi Tim,

I've had permanent resident status for over 10 years but recently have been spending less time in SA.

To clarify, I am being paid by a South African company into a foreign account. As an independent contractor - no PAYE tax etc deducted.

Re: rental income
yes it is over R63556
if was under R63556, then I need not declare it?

TaxTim TaxTim says:
15 July 2013 at 20:52

As it is over and an SA company is paying this into your account you would need to pay tax on it. So you would need to declare this on your IRP5 as well under a second "local business income" section. You can therefore also deduct all your expenses related to earning this income.

Do they issue you an IRP5? If so then don't worry about the "local business income" section, just include the related expenses under the "other deductions" section.


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