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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7432
Experience:  15years with H & R Block. Divisional leader, Instructor
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Hi If we employ someone to work in Tanzania, and they earn

Resolved Question:

Hi

If we employ someone to work in Tanzania, and they earn in country salary (taxable) and also earn a salary from South Africa. Would we need tax them on their SA salary? (now assuming they will not meet the 183 days, 60 consecutive days yet)
Please advise. any reference to Tanzania laws would we appreciated.

Thank you!
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Robin D :

Hello and thank you for using Just Answer,

Robin D :

Sars requires that you continue to withhold if the individual is not meeting the time abroad.

Robin D :

This also falls to the Double taxation in the treaty model with Tanzania.

Robin D :

Tanzania requires tax on sources of income in Tanzania as well.

Robin D :

SARs has written the treaty to include that if SARs can tax then they are first and any other relief would be applied based on the time abroad.


South African resident taxpayers who work abroad still need to declare their foreign income in their individual income tax returns. This income can however be exempted form South African tax by claiming a tax exemption where certain conditions of absence have been met. These conditions are:



  • It must be employment income; and

  • The income must be earned while you where working outside South Africa; and

  • The time that you must have been outside South Africa on work must be more than 183 days in any 365 day period and of this 183 days 60 days of absence must have been continuous; and

  • The income must become taxable in your hands during the 365 days referred to in the previous point.


This is an important exemption and South Africans working abroad must ensure that they qualify for the exemption.

Robin D :

If they do not, unfortunately they will pay tax in both.

Robin D :

Article 14
Income from Employment
1. Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other similar
remuneration derived by a resident of a Contracting State in respect of an employment shall be
taxable only in that State unless the employment is exercised in the other Contracting State. If the
employment is so exercised, such remuneration as is derived there from may be taxed in that other
State.

Robin D :

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a
Contracting State in respect of an employment exercised in the other Contracting State shall be
taxable only in the first-mentioned State if:
(a) the recipient is present in the other State for a period or periods not exceeding in
the aggregate 183 days in any twelve-month period commencing or ending in the
fiscal year concerned; and
(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of
the other State; and
(c) the remuneration is not borne by a permanent establishment which the employer
has in the other State.

Robin D :

The above is directly form the tax treaty between the 2 countries.

Robin D :

Article 21
Elimination of Double Taxation
Double taxation shall be eliminated as follows:
(a) in South Africa, subject to the provisions of the law of South Africa regarding the deduction
from tax payable in South Africa of tax payable in any country other than South Africa
(which shall not affect the general principle hereof), Tanzanian tax paid by residents of
South Africa in respect of income taxable in Tanzania, in accordance with the provisions of
this Agreement, shall be deducted from the taxes due according to South African fiscal law.
Such deduction shall not, however, exceed an amount which bears to the total
South African tax payable the same ratio as the income concerned bears to the total
income;

Robin D :

The employee may use the above and request a credit when they file their return with SARs but they will not be allowed a larger credit then the tax due to SARs.

Robin D :

The employer though will still need to withhold.

Robin D :

Customer Last Viewed Today at 10:42

Robin D :

Please let me know if you need clarification.

Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7432
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and 8 other Tax Specialists are ready to help you
Expert:  Robin D. replied 1 year ago.
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