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Does an employer still need to pay and deduct UIF from employees working overseas?

Friday, 30 January 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

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 income).

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.



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