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Working from SA, being paid in UK

Posted 4 September 2013 under Tax Questions



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Living and Working in South Africa remotely to UK (IT).

Hi Tim

I lived in UK for 5 years and returned to SA in 2010. I have dual nationality (German and South African).

I have been working in SA for a local company since 2010 earning rands. I have now been approached by my previous employer in UK to work for them again remotely from SA.

If I am paid by them in pounds into my UK bank account where will I pay tax and will have have to bring in all my earnings to SA or can I only bring in what I need?

Would it help to open a sole propriety and list expenses against my income such as rent expense (working from home office), cell phone, internet costs?

Many Thanks

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TaxTimTaxTim says:
5 September 2013 at 0:33

Where were you born and spent the majority of your life? Furthermore where is it that you consider your home?


Swen says:
5 September 2013 at 11:59

Hi Tim
I was born in SA and this is home.
The employer has now said I will need to contract to them for a set rate to make it easier for them to pay me so I will receive pounds in my UK account untaxed


TaxTimTaxTim says:
6 September 2013 at 11:30

You would need to make application to the Reserve Bank to keep your earnings overseas, but given that you are a South African and live and work in SA, regardless of where the income comes from, you will still need to pay tax on the amount earned. Ordinarily South African's need to repatriate income within 30 days and if you are paid in a foreign currency SARS have special rates which you would convert at for income tax purposes.

To answer your question, all expenses related to earning that income can be deducted against the income earned to reduce the tax payable, but yes tax would be paid on the income earned.


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