Tax Implications of Remote Work In South Africa

Описание: As a remote worker in South Africa, it's crucial to understand your tax obligations to navigate them correctly. This video provides a comprehensive guide to help you.

In this video, we cover:

Tax Residency:
The most important concept to understand. We explain South Africa's residence-based tax system, where you are taxed on your worldwide income if you are a tax resident. We break down the two key tests SARS uses:

The Ordinary Resident Test (your true home and center of gravity).
The Physical Presence Test (based on the number of days you spend in South Africa over several years).

Income Tax Obligations
We explain the difference between being a remote employee for a local company versus a foreign one. If you work for a foreign employer or as an independent contractor, you must register as a provisional taxpayer.

Provisional Tax: Learn how the provisional tax system works, including the bi-annual payment schedule in August and February.
Value Added Tax (VAT): Find out if you need to register for and pay VAT, especially if you are an independent contractor earning over the R1 million threshold.

Source of Income & Double Taxation Agreements:
Understand why your income source is considered South African even when working for an overseas company from within SA. We also touch on the importance of Double Taxation Agreements.

Claimable Expenses
Discover what expenses you can potentially claim, with a look at the strict rules for:

Home office expenses.
Internet costs.
Business-related travel.

Navigating the tax landscape can be complex, so it's vital to understand your specific situation. If you are unsure, always consider consulting with a tax professional

Chapters
00:00 Intro
00:55 Tax Residency
01:28 Ordinarily Resident Test
01:53 Physical Presence Test
03:28 Tax Obligations for Remote Workers
03:39 Remote Worker for Local Employer
04:00 Remote Worker for Foreign Employer
04:51 VAT
05:07 Source Of Income
05:58 Claiming Deductions
07:31 Recap
08:07 Outro