Plan to scrap tax exemption on income earned outside SA
Treasury’s controversial proposal is likely to be strongly opposed by tax practitioners, and the administrative burden of collecting the tax ‘would be a challenge’
Treasury has controversially proposed removing the foreign employment income tax exemption for South African residents working abroad, from March 1 2019. The Treasury deputy director-general Ismail Momoniat, said on Wednesday that the aim was to make sure the tax system was fair to all and that people did not exploit offshore tax havens. But the proposed measure is likely to be strongly opposed by tax practitioners. It is contained in the Draft Taxation Laws Amendment Bill of 2017, which was released Wednesday for public comment, together with the Draft Tax Administration Laws Amendment Bill. These two bills, together with the Draft Rates and Monetary Amounts and Amendment of Revenues Laws Bill, which was published in February, give effect to the tax proposals announced in the budget. Treasury and the South African Revenue Service (SARS) plan to hold workshops with stakeholders on the draft proposals; Parliament’s finance committee will also hold public hearings on the bills. Treasu...
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