I returned to SA following 7+ years in UK. I took up permanent employment in SA during June 2011 and am a residing tax payer on my SA income. Before returning to the SA I ran my own business through a limited company, paid corporation tax and in my personal capacity earned a salary (just below the "personal allowance threshold" which consisted of minimum salary allowance + dividends. Since returning to SA the UK company still received fee income from work I did prior to leaving the UK and I continued to pay myself a salary in accordance with the UK's minimum personal allowance threshold (which is the max salary you can receive in a tax year without paying tax - circa 7k pound sterling per annum) - which is thus tax exempt. My question is what implications the minimum allowance salary will have on my local SA tax return. I have to continuously file a tax return in the UK as well.
As a tax resident of SA you will pay tax on your worldwide income regardless of where it is earned. Normally if you pay tax in another country then you will be allowed to offset that tax against any tax payable in SA, however as you are not paying tax in the UK and because any earnings should also be added to your SA earnings you will need to include this in your SA tax return and will be taxed on this unfortunately.
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