Top Questions on Income that is not taxed

Updated 20 March 2024

Exempt or non-taxable income refers to certain types of income, which is not subject to income tax.

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I work for someone, but did not receive an IRP5 - what should I do?

Updated 6 June 2022

You may be employed by someone, but for one reason or another- you don't receive an IRP5 and no amount of begging or pleading

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Tax Exemption for Foreign Employment Income : What You Need to Know

Posted 17 March 2022

If you think earning an income from a global source isn’t taxable on home soil, I’m afraid I have some bad news. Whether you’re earning Dollars, Euros or Yen, as a South African, it’s more than likely you’ll have to pay tax on this income. This is because South Africa’s taxation system works on a residence-based tax system meaning we’re taxed on worldwide income.

There is, however, some good news!

Section 10 of the Income Tax Act offers a list of conditions where foreign remuneration earned (up to R1,25m) for services rendered outside of South Africa borders will be exempt from income tax.

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New South African Expat Tax Changes in 2021

Posted 4 February 2021

In a bid to meet its tax revenue quotas, SARS began introducing changes to the expatriate laws which took effect on 1 March 2020, which saw the launch of the Foreign Employment Unit.

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Do I earn enough to have to pay tax?

Posted 23 April 2020

Why must I pay tax, I don’t earn enough! Will I get a penalty if I don’t disclose all my income to SARS?

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Expat Tax

Posted 14 February 2020

As of 1 March 2020, South Africans working abroad will have to comply with the amended laws on expat tax. Amendments to the Income Tax Act includes the exemption of taxes up to the first R1 million per annum.

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1 March 2020: Expats alert, tax changes are coming your way!

Posted 25 February 2019

In 2017, National Treasury announced that there would be changes to the Foreign Employment income Exemption. These changes were intended to target those South Africans working overseas on expat contracts, who had not formally emigrated and were intending to return ‘home’ to SA at a later stage. The proposed amendments would have seen South Africans working overseas in lo...

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Foreign Employment Exemption Letter

Posted 4 June 2018

COMPANY LETTERHEAD

Date
Employee's Full Name
Address

To Whom It May Concern,

Subject: Confirmation of foreign employment

This letter serves to confirm that____________________________(Name of employee) _______________________(ID number) is employed by __________________________(company name) in the capacity of__________________________(position).
He/she is contracted to work overseas in _______________ (country)  from ______________dd/mm/yy to ________________dd/mm/yy.  ...

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Unpacking the Budget Speech: proposed changes to foreign employment

Posted 10 March 2017

Since the announcement of the 2017/2018 budget, TaxTim has been asked many times about the changes to the foreign employment income exemptions rules which could have a very negative effect on taxpayers working overseas.

Currently, if a South African resident works for a foreign employer and is out of the country for 183 days or more, within a 12 month period, and they fulfil various other conditions, their foreign employment income may be exempt from South African Income tax. Please ...

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What's the delay with getting my SARS Refund?

Posted 6 August 2014

SARS has typically been quick to refund taxpayers who have filed their tax returns and are due a refund, with money appearing back in their bank accounts smoothly and reliably, often within a day or two.

However since the opening of this tax season on 1 July 2014, the process appears to have changed and suffered a few hiccups along the way. From the queries we have received over the last month from multiple confused taxpayers, it would seem that thousands of refunds were first paid out, then reversed...

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