See New Conditions Around Taxes Related to Work-From-Home in South Africa

See New Conditions Around Taxes Related to Work-From-Home in South Africa. The Department of Home Affairs recently reintroduced reformation to immigration laws, effecting numerous changes on visas and vital skills.

An example of these changes is the introduction of the Remote Work Visa, made for people who want to work in South Africa while working for foreign employers.

The new law states that foreign workers who earn beyond the equivalent of R1 million a year can work in the country remotely, without having to register as taxpayers.

However, as a result of the objection from the tax fraternity, the DHA was forced to alter the regulations, ensuring that the tax exemptions were no longer automatic, and that the applicable period was lengthened from the former 12 months.

Consequentially, foreign remote workers will now be required to apply to the South African Revenue Service to get the exemption, and the visa is only relevant as long as it doesn’t go beyond 6 months in 36 months.

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See New Conditions Around Taxes Related to Work-From-Home in South Africa

Tax Consulting SA weighs in

Speaking on the issue, the Tax Consulting SA mentioned that, although this amendment is a reformation on the initial law, there is still the issue of the DHA sticking its nose into tax laws that it has no authority over.

It is overstepping its bounds, crossing into the domain on National Treasury and SARS.

The group said that, although foreign workers are now allowed to apply to SARS for tax exemption, there is still the question of whether such exemption exists under South African law or not. A question that tax professionals have answered in the negative.

There are still concerns over the DHA’s continuous efforts to make tax law in the absence of an existing tax exemption.

Meanwhile, the Tax Consulting SA has written to SARS officials to ask if the National Treasury or SARS itself will confirm the introduction and execution of this new exemption.

It is said that foreign remote workers surpassing their 6-month stay in South Africa are required, by reason of the Regulations, to register as a taxpayer with the South African Revenue Service.


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