9 May 2022 at 12:21
I have been working overseas and will be doing so for the whole of 2022 tax year making me provisional:
a. What average exchange rate will I use?
b. When is the first Provisional tax return due and, if necessary payable?
c. Can I deduct my overseas pension and medical from my gross income or is this only if I have a pension/RA and medical in South Africa?
d. I know that R1. 25 mil is exempt so how would I work out the tax on that as I know that I cannot claim all overseas tax paid as a rebate and my salary differed each month due to overtime etc.
9 May 2022 at 13:48
Response on your queries:
a. Tax is calculated as per individual tax rate tables on your estimated taxable income for the tax year. Please see the SARS FOREIGN income to ZAR income link: https://tools.sars.gov.za/rex/Rates/Default.aspx to complete the conversion. b. The 1st 2023 provisional tax return is due end of August 2022. Please refer to our following blog: what is provisional tax? how and when?
c. The foreign medical aid you can claim under the additional medical section on your tax return. If the pension fund is approved by SARS then you will be able to deduct the pension contributions.
d. The foreign tax rebate may not exceed the portion of tax payable that is linked to the foreign income received. (Total Normal Tax in South Africa x taxable foreign income / total taxable income) Please read our blog on Foreign income tax for SA residents for more information to qualify for the exemption.