South Africa’s finance minister is expected to address concerns over dwindling tax revenues in his mid-term budget on Wednesday to reassure credit agencies of his commitment to a tighter purse, a Reuters poll found.

Malusi Gigaba is due to give his first review on finances on Oct. 25 and economists expect him to announce a revenue shortfall of R40 billion ($3.0 billion) for the year that began in March due to poor tax receipts.

“His first challenge will be to deal with the concerns surrounding the underperformance of tax collections in the first five months of the current fiscal year,” said Jeffrey Schultz, economist at BNP Paribas in Johannesburg.

Low tax receipts means the consolidated budget deficit will widen to 3.9% of GDP in 2017/18 from a February Treasury estimate of 3.4% for the previous fiscal year, according to medians in the poll of 15 economists taken this week.

source: https://www.moneyweb.co.za/news/economy/sas-poor-tax-revenues-to-delay-fiscal-consolidation/

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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