New SARS taxes on S&t's
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Join Date: Feb 2008
Location: South Africa
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New SARS taxes on S&t's
According to the latest laws at SARS we are now going to start paying taxes on our S&T's that we earn. 
From what I understand every country in the world will have a certain tax free limit and everything earned above this limit will be added to your yearly income and you will be taxed on it, resulting in us being moved to higher tax brackets on our entire income.
This sucks, some of us might seriously need to consider another carreer path as this takes the whole advantage of doing contrack work away.
Any ideas on getting past this
From what I understand every country in the world will have a certain tax free limit and everything earned above this limit will be added to your yearly income and you will be taxed on it, resulting in us being moved to higher tax brackets on our entire income.
This sucks, some of us might seriously need to consider another carreer path as this takes the whole advantage of doing contrack work away.
Any ideas on getting past this
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Join Date: Jun 2002
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withaflash,
Thanks for the links. Interesting reading, however, IMHO not much to be worried about?
There has always been a threshold value above which S&T is taxed. I cannot recall it off-hand but seem to think it was in the region of $120 per day. Many of the places on the country list are well in excess of that and some are marginally lower. I think the impact will be minimal if at all, depending on which country you are operating in.
It also looks like the domestic limit has been increased?
Thanks for the links. Interesting reading, however, IMHO not much to be worried about?
There has always been a threshold value above which S&T is taxed. I cannot recall it off-hand but seem to think it was in the region of $120 per day. Many of the places on the country list are well in excess of that and some are marginally lower. I think the impact will be minimal if at all, depending on which country you are operating in.
It also looks like the domestic limit has been increased?
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Yo are right Lynessa. Most of the African countries are $250 to $300 dollars a day with some up to 250 euros! It used to be a flat rate of around $215 a day.
So contract work in Africa will still be very tax efficient.
So contract work in Africa will still be very tax efficient.
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S&T
It is subsistance and travel-as an allowance.Der absolute hammer-stay in germany!
Or wherever the Berlin Republic may be!
Or wherever the Berlin Republic may be!
Last edited by ARENDIII; 8th May 2009 at 17:12. Reason: Addition
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Regarding s&t's, the following questions.
1. Are you entitled to s&t if you do not nightstop. Re. Leaving in the morning from Lanseria for Cape Town and returning that evening to Lanseria. (Para 2 of the SARS document on allowance specifies that person is not entitled to allowance if he does not nightstop. Para 3 says person is entitled to allowance for day or part of the day away from home - seems to me contradicting). SAme applies for across border flights. Daily allowance for Angola is $191. If I just go to Luanda for the day can I claim $191?
2. If I do nightstop and return the next day do I just get s&t for the 1 nightstop or can I get s&t for 2 days?
3. If the company gives me an allowance that is greater than what SARS allowes, do I pay tax on the full amount or only the difference?
Might seem to be stupid questions but the company I work for interprets the document different to what I do.
Thanks
1. Are you entitled to s&t if you do not nightstop. Re. Leaving in the morning from Lanseria for Cape Town and returning that evening to Lanseria. (Para 2 of the SARS document on allowance specifies that person is not entitled to allowance if he does not nightstop. Para 3 says person is entitled to allowance for day or part of the day away from home - seems to me contradicting). SAme applies for across border flights. Daily allowance for Angola is $191. If I just go to Luanda for the day can I claim $191?
2. If I do nightstop and return the next day do I just get s&t for the 1 nightstop or can I get s&t for 2 days?
3. If the company gives me an allowance that is greater than what SARS allowes, do I pay tax on the full amount or only the difference?
Might seem to be stupid questions but the company I work for interprets the document different to what I do.
Thanks
