Page 44 - F6 Slides (CGT,TT,ET AND PT)

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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