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South African tax residents will now be subject to tax on foreign employment income earned in respect of services rendered outside South Africa but may receive relief for foreign taxes as a rebate, according to the bill. This will come into effect on March 1 2019.

Tertius Troost, tax consultant at Mazars, said this “contentious” issue will impact South Africans’ decisions to work overseas to raise funds, as well as employees who may be seconded overseas for six-month periods.

“This proposed amendment will most definitely negatively affect South African tax resident employees working in low tax or tax-free jurisdictions,” he said.

Troost said that a lot of public reaction is expected during the commenting period.

Jerry Botha, managing partner of Tax Consulting South Africa, explained how South African residents working overseas will have to pay tax. For example if they fall within the 45% personal income tax bracket, and if they pay 25% tax in the foreign country, they will have to pay the 20% difference to SARS.

source:http://www.fin24.com/Money/Tax/double-tax-may-be-on-cards-for-south-africans-who-work-overseas-20170720