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Tracey22

SA non-residents earning income in SA

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Tracey22

Does anybody on this forum still earn income from SA? If you have, have you looked into SARS applying a non-resident tax to income earned from the 2016 tax year? I am not referring to withholding tax royalties and dividends, but on income for services rendered.

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LaurenW

I have the same question! Did you ever get this resolved? 

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RudiSonnekus

I have the same question. We are going over on an intra company transfer work permit of our own business. Opening a branch in BC. We will be earning salaries from SA until the business is established in CA. While in Canada we will apply for residency through BC Entrepreneurial program...which can take a few years.  How do we deal with SARS concerning our income while residing in CA.  Our business is still running in SA.  Should our salaries get paid into a SA account or an International account?  How we deal with this income on the Canadian side?

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Nettie

@RudiSonnekus As far as I know, you need to declare all income earned outside of Canada for income tax purposes. As a Canadian/Canadian Resident you need to declare everything. You will be paying taxes on your earnings in SA/anywhere else in the world and Canada combined.

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MaryJane

Hi @RudiSonnekus, who is paying you the salary in South Africa? Is it the South African company? Would you be treated as a South African employee temporarily deployed to Canada whilst opening up the branch in Canada? Or are you being paid by the Canadian company?

If you are paid in SA by the SA company, then your remuneration could be tax exempt from SARS if it fulfills certain condition (mostly to do with rendering services outside of SA for a period of time - more than 183 full days in any 12 month period, including 60 continuous full days). As far as I know though, if the SA company pays you the salary, they will need to deduct SITE/PAYE (?) on it. If the Canadian company is paying you, then they'd deduct Income Tax.

In terms of income tax submission, Nettie is correct that if you submit your Canadian tax return, you would have to declare this income as Canada taxes on worldwide income.

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RudiSonnekus

Thanks for the info!

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