Page 45 - P6 Slide Taxation - Lecture Day 7 - Various Topics

Non-residents as employees

• Employees’ tax need not be deducted from the remuneration of

non-residents who render services outside the Republic on behalf
of a South African employer, since the source of the services is

outside the Republic.

• Non-residents are taxed on a source basis and there is therefore no

amount included in ‘income’.

• Employees’ tax must be deducted if the income is from a source

within the Republic in terms of s 9(2)( g ) (the holding of a public

office if the person has been appointed in terms of an Act of
Parliament) or s 9(2)( h ) (service rendered in the public sector).

• The reason for this is that it is not the place where the services are

rendered that determines the source in these two cases, but the

entity to which it is rendered.

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