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Does a foreigner with a 5 year contract to work in SA need to file a tax return?



Marius says:
12 November 2015 at 9:43

If a taxpayer from Germany has a 5 year contract to work in South Africa for a South African employer (of an international company), would that taxpayer need to file a tax return? The employer registered the taxpayer for income tax and is deducting PAYE on a monthly basis. The taxpayer earns more than the threshold and will be tax returning to Germany after the contract.

TaxTim TaxTim says:
14 November 2015 at 12:13

The taxpayer would need to file a tax return in South Africa because he is earning South African source income being paid from a South African company. If the taxpayer is going to be in South Africa permanently for the 5 years of the contract then they will be subject to South African tax legislation only on income earned here. The company has a responsibility to deduct PAYE monthly on the salary being paid which they are doing correctly. We cannot comment on the German legislation, but any taxes paid in SA will be offset against any taxes owing in Germany, but they would most likely not have to file in Germany, or at least not pay taxes due not earning income and being out of Germany for longer than 183 days.

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