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South Africa - Overview and introduction 

Taxation of international executives

The South African tax system is residence based. In terms of the residence basis of taxation, any person who is considered to be a South African tax resident will be taxed on his/her worldwide income and capital gains.


Non-residents are taxable on their South African-sourced income only, by virtue of the true source of their income. The source of employment income is determined as the place where the services are rendered, irrespective of where or by whom an individual is paid.


For the 2011 and 2012 tax years, the tax rates range from 18 percent to 40 percent. The South African tax year runs from 1 March to 28/29 February. The South African tax authority is known as the South African Revenue Service (SARS).


The official currency of South Africa is the South African Rand (ZAR).


Herein, the host country refers to the country where the employee is going on assignment. The home country refers to the country where the assignee lives when he/she is not on assignment.

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 South Africa

Taxation of international executives