What are the implications of the new 2020 tax law on expat tax South Africa?

The proposed changes will affect all South African employees who are earning an income overseas of more than R1 million in the year of assessment. Currently, if a South African tax resident earns a foreign employment income (and is not self-employed), and lives 183 days outside South Africa during a 12-month period, from which 60 days are continues, they do not pay tax on their foreign employment income. The new 2020 tax law is different in that the same SA tax resident’s first R1.25 million earned is exempt from tax, but thereafter, they can pay up to 45% tax on their income earned abroad.

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