{"id":70725,"date":"2023-03-10T05:09:00","date_gmt":"2023-03-10T03:09:00","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=70725"},"modified":"2026-01-29T14:16:13","modified_gmt":"2026-01-29T12:16:13","slug":"how-remote-work-affects-your-tax-obligations","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/how-remote-work-affects-your-tax-obligations\/","title":{"rendered":"How remote work affects your tax obligations"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/category\/strategy-legal-operations\/compliance\/\" class=\"entry-header__link\">Compliance<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tHow remote work affects your tax obligations\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2023-03-10T05:09:00+02:00\">March 10, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"How remote work affects your tax obligations\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/how-remote-work-affects-your-tax-obligations\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-za\/blog\/author\/ingebarry\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/06\/Inge-350x350.jpg\" class=\"entry-author__image\" alt=\"\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/06\/Inge-350x350.jpg 350w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/06\/Inge.jpg 744w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Inge Barry<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>The taxman is like your shadow: Whether you\u2019re working from South Africa for a company abroad or vice versa, it follows you everywhere.<\/p>\n\n\n\n<p>As remote working grows in popularity, staying clued up about tax variables, implications, and sneaky caveats is critical to avoid penalties.<\/p>\n\n\n\n<p>Here are some of the tax biggies for remote employees and their employers to consider:<\/p>\n\n\n\n<p><strong>It\u2019s all about the source of income<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.sars.gov.za\/individuals\/tax-during-all-life-stages-and-events\/tax-and-non-residents\/\">South Africa\u2019s residence-based tax system<\/a> requires all residents to pay tax on global income, regardless of where it was earned.<\/p>\n\n\n\n<p>You are classified as a resident for tax purposes if you are a natural person ordinarily resident in South Africa, or if you pass the \u201cphysical presence\u201d test, i.e., you were physically present in South Africa for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>91 or more days during the current tax year,<\/li>\n\n\n\n<li>91 days during <em>each<\/em> of the five tax years before the current year, or<\/li>\n\n\n\n<li>915 days in total for the previous five tax years.<\/li>\n<\/ul>\n\n\n\n<p>In other words, if you live in SA but are employed by a company based in the UK, your income may still be taxable in SA.<\/p>\n\n\n\n<p>Sound complicated? Let\u2019s break it down:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Employment income: <\/strong>If you earn employment income from a company abroad, you are exempt from tax for the first R1.25 million, if you spend a minimum amount of days outside the country in a tax year.<\/li>\n\n\n\n<li><strong>Capital gains:<\/strong> Foreign capital gains are fully taxable if you\u2019re a South African resident.<\/li>\n\n\n\n<li><strong>Rental income:<\/strong> Any rental income you receive or accrue as a resident is taxable. However, insurance, bond interest, rates, taxes, and other expenses are tax deductible.<\/li>\n\n\n\n<li><strong>Self-employment: <\/strong>Any commission, trade income, professional fees, or other income you receive is taxable, regardless of whether your clients are based in SA.<\/li>\n\n\n\n<li><strong>Dividends: <\/strong>A 20% withholding tax applies to resident companies paying dividends, and the same goes for foreign companies paying dividends for shares listed in SA. However, if you\u2019re a South African resident who owns more than 10% equity shares and voting rights of the foreign dividends, you\u2019re exempt from the withholding tax.<\/li>\n\n\n\n<li><strong>Interest: <\/strong>Any interest you receive or accrue to someone is taxable if you\u2019re an SA resident. However, local interest of up to R23,800 (R34&nbsp;500 for taxpayers 65 and older) is exempt from tax.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-f8b600a4-c688-4a26-805f-613d39fb14f4 \">Download your free copy of the Quick Guide to Payroll Compliance 2023\/24 <\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-does-sa-make-provisions-for-foreign-tax-relief\">Does SA make provisions for foreign tax relief?<\/h2>\n\n\n\n<p>Section 6quat of the Income Tax Act lets you claim a foreign tax credit if you are a south African tax resident, who is an employee and renders services outside the republic. However, this Section only applies to employees who are outside the republic for longer than 183 full days in any 12-month period as well as a continuous period exceeding 60 full days outside South Africa in the same period of 12-months..<\/p>\n\n\n\n<p>Only the first R1.25 million of foreign employment income earned by a tax resident will qualify for exemption. Any foreign employment income earned over and above R1.25 million will be taxed in South Africa, applying the normal tax tables for that particular year of assessment..<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-every-situation-is-different\">Every situation is different<\/h2>\n\n\n\n<p>The tax situation for remote work is filled with complex rules and legislation, so consider all the variables before placing yourself in a tax box that makes you vulnerable to penalties.<\/p>\n\n\n\n<p>The best option? Run to your nearest tax practitioner before making a move. If you\u2019re already in a remote working agreement with a foreign employer, consider chatting to a tax practitioner to ensure you\u2019re on the right tax train.<\/p>\n\n\n\n<p>Or do your own research. SARS has everything you need to know about <a href=\"https:\/\/www.sars.gov.za\/individuals\/tax-during-all-life-stages-and-events\/foreign-employment-income-exemption\/\">foreign employment income<\/a>.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Keep your submissions simple this Tax Year-End<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get the latest expert advice and free resources to help you manage your payroll and enable compliance.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-za\/cp\/sagecloudpayrollsoftware\/#hrguide?utm_source=sageadvice&#038;utm_medium=website&#038;utm_campaign=HRandPayroll&#038;utm_term=TaxYearEnd\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-69394\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Find out more<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1097994958-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1097994958-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice enewsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-84fe79b5-668d-41f8-a0cc-6229018c4ac9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn about the tax implications that South African individuals need to consider when working remotely, including residency status, employment income, and self-employment. Stay informed and ensure compliance with the relevant tax regulations to avoid any potential penalties.<\/p>\n","protected":false},"author":1265,"featured_media":70598,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[35],"tags":[],"business_type":[2,5],"lilypad":[],"context":[],"industry":[],"persona":[15,16],"imagine_tag":[51,85,86,352],"coauthors":[443],"class_list":["post-70725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","business_type-small-business","business_type-accountants"],"sage_meta":{"region":"en-za","author_name":"Inge Barry","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2023\/02\/GettyImages-643644406.jpg","imagine_tags":{"51":"Accountants","85":"Small business","86":"Start up business","352":"Working remotely"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/70725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/1265"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=70725"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/70725\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/70598"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=70725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=70725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=70725"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=70725"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=70725"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=70725"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=70725"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=70725"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=70725"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=70725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}