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Foreign employment income

Posted 4 May 2016 under Tax Questions



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Pam says:
3 May 2016 at 12:32

Please advise the tax application on the following

1. SA residents living and working in South Africa for a overseas company. 2. Receiving a salary from the overseas company-paid in ZAR to the employees. 3. Should the foreign company deduct PAYE or should the employee be responsible for it when
submitting their Income Tax in SA.

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TaxTimTaxTim says:
4 May 2016 at 10:56

Does the overseas company have a branch/office in SA?
Are the residents permanent employees of this company?


Pam says:
4 May 2016 at 11:19

Does the overseas company have a branch/office in SA? - No
Are the residents permanent employees of this company? Yes


TaxTimTaxTim says:
4 May 2016 at 13:23

If the company is registered as an Employer with SARS in South Africa, then it should be withholding PAYE each month and paying it to SARS. However this seems not to be the case, and therefore the employees will have to register as Provisional taxpayers and pay tax twice a year. If there is tax withheld by the foreign company, assuming there is a double tax treaty agreement, you should able to off-set this tax off against tax paid in SA.


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