Income Tax: Living in SA but working for a UK based company?

cyeber · #1 (**permalink**) 25th November 2008, 04:14 AM

Hi,

My wife will be living in South Africa but working for a UK based company via the internet/telephone. My question is:

Are there any legal requirements for her company regarding income tax etc? She is currently being paid her salary, after UK income taxes have been deducted as normal as if she lived in the UK, into her UK bank account and the funds are then transfered to our SA bank account.

Thanks for any help regarding this query.

Elphaba · #2 (**permalink**) 1st December 2008, 07:07 AM

There is a dual taxation agreement between the UK and SA, to ensure that a person only pays one lot of tax. If however your wife is UK non-resident she should be paying tax in SA, not the UK.

The HMRC link is below:

Double taxation agreements: residence

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HereForNow · #3 (**permalink**) 27th December 2008, 04:24 PM

What if you end up traveling worldwide for work, or work 50-50 in each country?

kaz101 · #4 (**permalink**) 27th December 2008, 08:25 PM

Quote:

Originally Posted by HereForNow

What if you end up traveling worldwide for work, or work 50-50 in each country?

As Elphaba said it depends on double taxation agreements and if you are travelling world wide it depends how long you are spending in each country. Some countries say that you have to pay taxes in them if you stay there for a certain period of time, with other countries it depends on where you are resident.

For example in both the UK and Australia if you are resident there then you are liable to pay tax on your worldwide income in those countries.

Check out if there is any help at the tax office website
South African Revenue Service - Welcome to the website of the South African Revenue Service (SARS)

Regards,
Karen

HereForNow · #5 (**permalink**) 27th December 2008, 08:27 PM

Thanks Karen

bytespider · #6 (**permalink**) 14th January 2009, 05:36 PM

Hi everyone,

Im also planning on going to South Africa for a short period, no more than 6months.

However I wish to keep my Job in the UK. I've gathered that working remotely seems to be a grey area.

As i will be in the UK more than 185 days I guess I'll be taxed as a UK employee.

Question is what documents do i need?
- work visa? or standard tourist visa?
- temp residency permit? (or is this for greater than 6months stay?)

After the 6months is up I have NO plan to stay on, and I have no plan to work for a SA company.

So please help.
There seems to be no-one with the right answers

tompitman · #7 (**permalink**) 14th May 2009, 10:10 AM

Elphaba is correct. in practice SARS will never know and you could get away without paying any tax but bearing in mind you are living in SA and they probably spend your taxes more wisely than the UK govt you should pay in SA not the UK!

Daxk · #8 (**permalink**) 14th May 2009, 01:16 PM

Quote:

Originally Posted by tompitman

Elphaba is correct. in practice SARS will never know and you could get away without paying any tax but bearing in mind you are living in SA and they probably spend your taxes more wisely than the UK govt you should pay in SA not the UK!

Thanks Tompitman, thats the funniest thing I've heard in ages

Danni · #9 (**permalink**) 5th July 2009, 07:21 PM

Quote:

Originally Posted by bytespider

Hi everyone,

Im also planning on going to South Africa for a short period, no more than 6months.

However I wish to keep my Job in the UK. I've gathered that working remotely seems to be a grey area.

As i will be in the UK more than 185 days I guess I'll be taxed as a UK employee.

Question is what documents do i need?
- work visa? or standard tourist visa?
- temp residency permit? (or is this for greater than 6months stay?)

After the 6months is up I have NO plan to stay on, and I have no plan to work for a SA company.

So please help.
There seems to be no-one with the right answers

Hi there,

I am looking to do exactly the same thing except only for four months...did you find an answer to your question or are you out there doing it now!? I can't seem to get a straight answer from the embassy and its driving me crazy. All the visitors permits seem to be for 3months and it isn't clear how you qualify for an extension...

Any help would be greatly appreciated!

Thank you

Danni

Stevan · #10 (**permalink**) 6th July 2009, 09:18 AM

Quote:

Originally Posted by bytespider

Hi everyone,

Im also planning on going to South Africa for a short period, no more than 6months.

However I wish to keep my Job in the UK. I've gathered that working remotely seems to be a grey area.

As i will be in the UK more than 185 days I guess I'll be taxed as a UK employee.

Question is what documents do i need?
- work visa? or standard tourist visa?
- temp residency permit? (or is this for greater than 6months stay?)

After the 6months is up I have NO plan to stay on, and I have no plan to work for a SA company.

So please help.
There seems to be no-one with the right answers

Hi

You will automaticaly get three month visitor visa when entering SA assuming you have a british passport. You can extend it for another 3 months in SA at a local home affairs office, not more than thirty days before original visa expires.
Beware offices in large cities are mobbed and it could take ages. My brother in law did this in port shepston and only took a morning to sort. You need to be able to show you can support yourself and have a return ticket.