Overseas income

Karen says:
8 July 2020 at 12:21

I have been working overseas and will be doing so for the whole of 2021 tax year making me provisional:
a. What average exchange rate will I use as February 2021 has not yet arrived?
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 rebate and my salary differed each month due to overtime etc.

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TaxTim TaxTim says:
8 July 2020 at 13:48

Response on your queries:
a. Tax are calculated as per individual tax rate tables on your estimated taxable income for the tax year.
b. The 1st 2020 provisional tax return is due end of August 2020. 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. If the 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)

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