Q: Please can you advise if we can still
pay/deduct UIF from employees who are working out of the country?
A: In our view,
persons employed by an SA employer who are rendering services abroad are not excluded
from making UIF contributions. However, should s10(1)(o)(ii) apply to exempt
such remuneration from income tax, then no UIF would be payable as the UIF
contribution is based on "remuneration” as defined in para 1 of the Fourth Schedule
of the Income Tax Act which is any amount of "income” (gross income less exempt
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.