Page 46 - P6 Slide Taxation - Lecture Day 7 - Various Topics
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Non-residents
• South African employers may from time to time employ non-residents for
short periods.
• When their services are rendered outside South Africa, their income is
clearly from a source outside the Republic and employees’ tax need not be
deducted.
• When their services are rendered in the Republic, employees’ tax will
have to be deducted, since the source of their income from remuneration
will be in the Republic.
• In certain instances, a double taxation agreement between the Republic
and the country of residence of the employee may relieve an employee of
liability to South African tax, in which event employees’ tax need not be
deducted.
• Section 10(1)( c )(v) provides an exemption for salaries paid to any subject
of a foreign state who is temporarily employed in the Republic, provided
that the exemption is authorised by an agreement entered into by the
governments of the foreign state and the Republic (see chapter 5).
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