South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of where their income was earned. By contrast, non-residents are taxed on their income from a South African source. Foreign taxes proved to be payable to a foreign government may generally be credited against South African tax payable on foreign income.
To check if you need to register and pay tax follow these steps:
- Find out if you are a resident or a non-resident
- Register for income tax
- Verify if a Double Taxation Agreement (DTA) exist between South Africa and the foreign country
- Determine if you need to submit a return
- Will any of my foreign employment income be taxable in South Africa?
- Register for eFiling.