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Taxation of amounts derived by a non-resident from a South African source

15 October 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: My client came from GBR (and has dual citizenship with Mauritius) to South Africa and in April 2013 she received an IRP 5 and was taxed on the money. She now wants all the PAYE back but she did not comply with section 10(1)(o) exemption and still works in SA. She also wants to submit her tax in Mauritius because we have a double taxation agreement and believes she must not pay PAYE in South Africa. Is this correct?

A: You state that the client ‘come from GBR and has dual citizenship with Mauritius.  We assumed that she is not a resident of the RSA, but don’t know of which country she is a tax resident.  Please note that citizenship is not relevant in this case.  As you indicated that the client came to the RSA in "April 2013” we assume that the remuneration, in respect of which the IRP5 was issued, is in respect of an employment derived by the recipient who was present in the RSA for a period or periods exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned.  You are correct that section 10(1)(o) does not find application here as the services was not rendered outside the RSA.  

South Africa therefore has a right to tax the income (both where she is a resident of the UK or Mauritius).  If a double tax arises the other country will have to provide a rebate or other relief.  

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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