Non-Resident Expatriate Tax Payer (Inbound)
An inboud expatriate is defined as a person who is temporarily or permanently residing in a country other than that of their citizenship. As South Africa applies a residency based system of taxation, world-wide receipts derived by residents are defined as gross income. For non-residents only receipts derived from sources within or deemed to be within South Africa are subject to tax in South Africa, with certain exemptions. Non-residents are therefore taxed on a source based system of tax.
RSA Resident Expatriate Tax Payer (Outbound)
All South African tax residents regardless of where the taxpayer is based are required to declare their worldwide income unto SARS by way of submitting an annual income tax return.