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Tax implication on initially tax exempt foreign earnings?

Posted 7 April 2014

Hi Tim, reading through your blog I am quite confident that my foreign earnings will be tax exempt...thank you! I start a working contract as a salaried worker in Saudi Arabia this September. I am thinking of transferring the bulk of the money into my South African cheque account on a monthly basis and maybe from there into a market linked account.

My question relates to tax implication at this point. Do I pay SA tax on just the interest earned thereafter? Does the capital get taxed in subsequent tax years?

I hope I am coming across clear enough so you may access my points of confusion.

TaxTim TaxTim says:
9 April 2014 at 14:46

Thanks for the support and happy the blog could help.

You are correct, you will only pay tax on the interest earned in South Africa, not any of the capital growth of the funds.

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