Foreign Income Tax Explained :
Dividends, employment, rental income, interest, and royalties are all sources of foreign income for many South Africans.
You might be confused about whether the money you earn in a foreign country is taxable in South Africa, and whether you should report it on your South African tax return.
In a nutshell, yes, foreign income is taxed in South Africa.
According to the South African tax system, all local and foreign income received by a South African resident is taxable, irrespective of where it’s paid or where the money comes from.
This is referred to as a Worldwide Tax System.
If South Africa is your primary home and you have a South African passport, you will be responsible for paying taxes there.
We’ll break down foreign revenue into several categories of income to give you a better understanding of the tax implications.
- Earnings from foreign employment
- Dividends and interest income from abroad
- Rental income from abroad
- Income from International trade
- Royalties from abroad