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Living, working and paying tax abroad

Mikele says:
25 April 2022 at 15:33

I have been living and working abroad in Australia for Australian companies since 2017. All the while I have been paying income tax, social security tax etc. in Australia. Naturally, I do not have an IRP5 from the Australian employer. As far as I understand SARS still requires me to declare my income? If so where and how do I declare this on the tax return?

TaxTim TaxTim says:
25 April 2022 at 20:35

Yes, you need to declare the foreign income as long as you are seen as a South African tax resident, you need to declare all your worldly income. Please complete our decision tree: Am I A Tax Resident Of South Africa?  to see if you qualify. 

First, you will need to check if you qualify for the exemption (Foreign Employment Income Exemption - What Is It Really? ).

If your foreign income is exempted, you need to declare it under the "Amounts Non-Taxable" section of your tax return.

If the income is taxable, you need to declare it under the "Foreign Non-Employment Income" section because the income is from a foreign company and did not receive an IRP5. Please note you will also need to complete the tax you paid to Australia under the Foreign Taxes Paid section of your return.

You need to say "Yes" to the following question: "Did you earn any income from overseas while you were living in South Africa?"

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