The Covid pandemic has brought a lot of changes in terms of how employees render their services. The theme of employees working remotely has become more prevalent, and there has been a rise in South Africans working for foreign companies while still living in South Africa. The implications of the above can lead to employees being taxed by the South African Revenue Service and by the country where their employer is located.
It is therefore important to be cognisant of this fact when engaging with your foreign employer in terms of tax payable on your salary. The deciding factor, which is the approach Sars takes in determining where the income is sourced, is to determine where the service was rendered to “earn” the employee’s income.
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