Tax Law for South African Contract Pilots
Thread Starter
Join Date: Apr 2008
Location: SOUTH AFRICA
Posts: 2
Likes: 0
Received 0 Likes
on
0 Posts
Tax Law for South African Contract Pilots
HI
Does anyone know what the Tax Law is regarding being out of SA on contract? and what is the best way to avoid paying tax when being paid in US dollars?
Thanks in advance!
Does anyone know what the Tax Law is regarding being out of SA on contract? and what is the best way to avoid paying tax when being paid in US dollars?
Thanks in advance!
Join Date: Oct 2006
Location: Pretoria, South Africa
Posts: 157
Likes: 0
Received 0 Likes
on
0 Posts
if you spend more than 180 days total and one trip of 63 days consecutively(excluding travel days) out of SA then you do not have to pay tax. however, if your company pays tax, you need to claim it back after the tax year which can become a bit of a headache. the best is to get a certificate from SARS that will allow your company not to pay PAYE on your behalf, but you will still have to prove at the end of the year on your tax return that you have met the requirements not to pay tax even if you have the certificate.
the best is to find a tax consultant to handle this on your behalf, especially if you are not home much. a tax consultant that knows his/her stuff will also confirm the above to you.
hope this helps.
the best is to find a tax consultant to handle this on your behalf, especially if you are not home much. a tax consultant that knows his/her stuff will also confirm the above to you.
hope this helps.
Join Date: May 2007
Location: Worldwide
Posts: 43
Likes: 0
Received 0 Likes
on
0 Posts
best way to avoid paying tax when being paid in US dollars?
Other than that, Springbok614 (or rather KingProtea614) is spot on!
But why do you want to manage your tax in this manner, it is so well managed by government.
Last edited by Taxidriver009; 11th Dec 2008 at 03:05.
Join Date: Dec 2002
Location: Hong Kong
Posts: 72
Likes: 0
Received 0 Likes
on
0 Posts
184..
Tax rule as follows from SARS website:
"..If a South African is for 184 days in any 365 day period out of South Africa (and that includes one continuous period of 61 days) then he will not be liable for tax on the foreign income earned in this period..."
P
"..If a South African is for 184 days in any 365 day period out of South Africa (and that includes one continuous period of 61 days) then he will not be liable for tax on the foreign income earned in this period..."
P
Join Date: Jan 2005
Location: DILLIGAF
Age: 65
Posts: 31
Likes: 0
Received 0 Likes
on
0 Posts
What about the dollars earned during time off? Do you declare that and pay tax on it?Example. I'm earning $9.5k on and $3.5k off. I live in RSA. Am compliant with the 185/63 days per annum.
Join Date: Dec 2002
Location: Hong Kong
Posts: 72
Likes: 0
Received 0 Likes
on
0 Posts
tax
I controlled in the ME for a while - while running a business here on off time - all the cash I earned in the ME was tax free because I complied with the "days out of SA rule", was taxed rightly on moneys earned here.
If by time off u mean u earn it here in SA, then of course u'll be taxed on it.
Hope that helps.
P
If by time off u mean u earn it here in SA, then of course u'll be taxed on it.
Hope that helps.
P
Join Date: Jan 2005
Location: DILLIGAF
Age: 65
Posts: 31
Likes: 0
Received 0 Likes
on
0 Posts
I'm earning the USD from one contract. It states X$ for time on and Y$ for time off. Being paid from an Off shore Company into my ZAR account. Even tho I'm on time off, I'm still being paid in accordance with my contract.
Join Date: Nov 2005
Location: Planet Earth
Posts: 23
Likes: 0
Received 0 Likes
on
0 Posts
Putco....
Paid Leave that is accumilated as a result of work done out of the country is also not taxable. Only money that you earn for work done in SA (example freelance charter out of FALA while on leave) will be taxable.
Cheers!
Paid Leave that is accumilated as a result of work done out of the country is also not taxable. Only money that you earn for work done in SA (example freelance charter out of FALA while on leave) will be taxable.
Cheers!
SA tax law is residency based. Hence "resident for taxation purposes" is as defined by your days in the country, as stated above. (Note: not where you sleep, where your house is etc etc)
If you are non resident for taxation purposes, you do not pay SA tax on your foreign income. In my case, I still had to pay tax on SA rental income, though I am non-resident for tax purposes.
It does not matter what the earnings are (on duty/off duty/allowance etc etc) or where they are paid - they are all seen as income
If you find yourself paying double tax as a result of this, you can get a tax credit offset if the country you are in has a double taxation agreement with SA. Australia has, for example
(Sorry, this effort is double posted - finger trouble -pesky "control" key)
If you are non resident for taxation purposes, you do not pay SA tax on your foreign income. In my case, I still had to pay tax on SA rental income, though I am non-resident for tax purposes.
It does not matter what the earnings are (on duty/off duty/allowance etc etc) or where they are paid - they are all seen as income
If you find yourself paying double tax as a result of this, you can get a tax credit offset if the country you are in has a double taxation agreement with SA. Australia has, for example
(Sorry, this effort is double posted - finger trouble -pesky "control" key)
Join Date: Jun 2002
Location: Dubai
Age: 55
Posts: 313
Likes: 0
Received 0 Likes
on
0 Posts
Hi guys,
James, you are essentially correct but have somewhat oversimplified the situation.......
Yup, all earnings are considered by the Thief of Revenue as income however, some of it may be considered as excluded from TAXABLE income. S&T is an example of this.....the taxman has rules laid down for what must and must not be included in taxable earnings. The 183 day rule is another example of this.
SKYMONGREL, the currency that you are paid in has no bearing on your tax affairs. If you comply with the 183 day rule, that income is not taxable.......but you are still obliged to declare it.....and I think another issue you may want to look at is the fact that the Reserve Bank requires you to repratriate your earnings within a specific timeframe.
The money that you get paid while in SA, would still be taxed as normal. I suspect that SARS may want to have a good look at your employment contract so they can determine if your claims are reasonable.
Another issue to be aware of is the fact that you may become a provisional taxpayer, since you are probably earning allowances.
I would spend a couple of bucks and find a good accountant to help you with the first couple of returns and then you could probably handle it yourself via e-filing.
Cheers
Kenny
James, you are essentially correct but have somewhat oversimplified the situation.......
Yup, all earnings are considered by the Thief of Revenue as income however, some of it may be considered as excluded from TAXABLE income. S&T is an example of this.....the taxman has rules laid down for what must and must not be included in taxable earnings. The 183 day rule is another example of this.
SKYMONGREL, the currency that you are paid in has no bearing on your tax affairs. If you comply with the 183 day rule, that income is not taxable.......but you are still obliged to declare it.....and I think another issue you may want to look at is the fact that the Reserve Bank requires you to repratriate your earnings within a specific timeframe.
The money that you get paid while in SA, would still be taxed as normal. I suspect that SARS may want to have a good look at your employment contract so they can determine if your claims are reasonable.
Another issue to be aware of is the fact that you may become a provisional taxpayer, since you are probably earning allowances.
I would spend a couple of bucks and find a good accountant to help you with the first couple of returns and then you could probably handle it yourself via e-filing.
Cheers
Kenny
Join Date: Jun 2002
Location: uk
Posts: 26
Likes: 0
Received 0 Likes
on
0 Posts
Good Tax Consutaltant
I have been using this company in Durban(World Wide Tax Solutions) they take care of people whom work on oil Riggs, engineers and pilots.They are very nice, send you reminders etc.The lady to talk to is Teresa,she can be reached on
World-Wide Tax Solutions tel no 0027 31 7673430.
At the moment I pay R800 a year and they take care of everything.
Good Luck
World-Wide Tax Solutions tel no 0027 31 7673430.
At the moment I pay R800 a year and they take care of everything.
Good Luck
