Expatriate tax ebook - South Africa

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
Employers of foreign individuals are required to apply for a work permit prior to the employee taking up employment in South Africa.

Employment visas
An application for a work permit must be made to the Department of Home Affairs . The spouse and children of an expatriate employee must apply for visas. They will be issued with temporary residence permits on arrival and will be able to apply for work or study permits either before departure or upon arrival in South Africa.

Tax year
1 March to last day of February

Tax returns and compliance
A foreign employee must register within 60 days after he/she becomes liable for income tax in South Africa.
The deadline for submitting individual income tax returns is determined on an annual basis. This deadline is usually five to six months after year-end, except for cases where an extension has been granted.

An income tax return must also be filed if a foreign employee either receives employment income that exceeds a specified annual threshold (R60,000 per annum or the equivalent thereof ) or receives other taxable income in South Africa, such as rental from immovable property in South Africa.

Income tax rates

Income Tax Rates: 2011/12

Taxable Income (R)	Rate of Income tax
1 – 150,000	18% of each R1
150,001– 235,000	27,000 + 25% of the amount above 150,000
235,001 – 325,000	48,250 + 30% of the amount above 235,000
325,001 – 455,000	75,250 + 35% of the amount above 325,000
455,001 – 580,000	120,750 + 38% of the amount above 455,000
580,001 and above	168,250 + 40% of the amount above 580,000

Sample income tax calculation
A person earning R600 000 per year will pay the following amount of tax:

(R600 000 – R580 000) * 40% = R8 000 + R168 250 = R176 250

A natural person qualifies for a primary rebate of R10 755 per year (persons over 65 and 75 qualify for additional rebates of R6 012 and R2 000 respectively in addition to the primary rebate)

Therefore the amount of tax which will be payable by the individual (assume age under 65) will be (R176 250 – R10 755) R165 495.

The average tax rate is therefore only 27.5%.

Information about South Africa:

Last updated 16 June 2011

This information has been provided by Grant Thornton South Africa, a member firm within Grant Thornton International Ltd, and is for informational purposes only. Neither Grant Thornton South Africa nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.

Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms. Disclaimer

Contact us

For further information on expatriate tax services in South Africa please contact Christel du Preez

Related websites

Department of Home Affairs

South African Revenue Services

Department of National Treasury

Select a country

Grant Thornton International is a non-practicing, international umbrella entity organised as a private company limited by guarantee incorporated in England and Wales. References to "Grant Thornton" are to the brand under which the Grant Thornton member firms operate and refer to one or more member firms, as the context requires. Grant Thornton International and the member firms are not a worldwide partnership. Services are delivered independently by the member firms, which are not responsible for the services or activities of one another. Grant Thornton International does not provide services to clients.