Capitax specialises in tax compliance issues relating to expats: South African residents earning foreign income.

All SA residents are required to declare their worldwide income to SARS.  This ruling is irrespective of how much you earn, where you work, the period you worked, whether you paid tax in the foreign country or whether there is a double taxation agreement (treaty) in place between South Africa and the respective foreign country. Non-residents are only taxed on their income from a South African based employer.

Expats are required to comply via:

  • being in posession of an income tax number
  • submitting an *annual income tax return (IT12), deadline being 31 October
  • submitting bi-annual (twice a year) provisional tax returns (IRP6), the deadlines being 31 August and 28 February, respectively
  • complying with additional assessments on IT12/IRP6 submissions, as requested by SARS from time-to-time
  • furnishing SARS with changes to registered personal information

*The term ‘annual’ refers to a year of assessment running from March to February.

Penalties, as well as possible imprisonment, could be imposed to non-compliant residents. The penalty amount that will be charged by SARS depends on your taxable income and can range from R250 up to R16,000 a month for each month that the non-compliance continues.

We ensure that you, the South African resident, enjoy ALL the tax benefits that you are entitled to in terms of the Income Tax Act 58/1962 and Tax Administration Act 28/2011: from exemptions, double taxation agreements, arrangements between countries, foreign taxes paid by you to foreign governments, to including withholding taxes taken from your foreign earnings. 

Capitax endeavors to make your outstanding responsibilities towards SARS as painless and stress free as possible and ensures that all your tax and reporting responsibilities are met in the future.

We provide our individual clients with the taxation expertise, knowledge and customised services they deserve throughout the year.