Foreign companies employing SOUTH AFRICANS? Watch This!!!

🌍 South Africa's New Tax Rules for Foreign Employers Explained!!!
Email me at heinrich@saaccountingsolutions.co.za if you want to do an assessment of your Permanent Establishment and if you need assistance with the process of setting up a branch in South Africa.
Here is the links to the articles
globaltaxnews.ey.com/news/202...
www.mondaq.com/southafrica/in...
kpmg.com/xx/en/home/insights/...
www.fanews.co.za/article/tax/...
static.pmg.org.za/231122pcfin...
Permanent Establishment articles
www.mondaq.com/southafrica/in...
journals.co.za/doi/pdf/10.105...
📅 Effective March 1, 2024, significant amendments have been made to South Africa's employee tax withholding regulations for non-resident employers. In this video, we break down what these changes mean for you.
🔍 *Understanding the Amendment*
Previously, non-resident employers only had to withhold employees' tax if they had a representative employer in South Africa. However, the new amendment extends this obligation to non-resident employers conducting business activities through a Permanent Establishment (PE) in South Africa.
📜 *Background*
The amendment aligns all employer obligations, including contributions to the Unemployment Insurance Fund (UIF) and the Skills Development Levy (SDL), with existing requirements. It requires non-resident entities with a PE in South Africa to register as employers with the South African Revenue Services (SARS) and withhold PAYE on remuneration paid.
🎯 *Reasons for the Amendment*
The aim is to ensure fairness and compliance across all employers, regardless of residency status. By broadening the scope of PAYE withholding, the government seeks to close potential tax loopholes and ensure that all businesses contribute their fair share.
💼 *Integrated Effects on Other Taxes*
The establishment of a PE may trigger additional tax obligations, including Corporate Income Tax and Value Added Tax (VAT) registration requirements. This could impact how non-resident entities engage with South African employees and influence global talent acquisition strategies.
🤔 *Conclusion and Takeaway*
The amendment is not merely administrative; it carries significant implications for non-resident employers operating in South Africa. It's crucial for affected entities to understand their obligations and assess the potential tax consequences of creating a PE.
🌟 *Stay Informed, Stay Compliant*
As the regulatory landscape evolves, it's essential to stay informed and adapt accordingly. Subscribe for more updates and insights on navigating tax and compliance matters in South Africa and beyond.
Let's ensure a fair and transparent tax environment for all. Watch now to learn more about these important changes! 📺

Пікірлер: 26

  • @alettatheron1263
    @alettatheron12634 ай бұрын

    Baie dankie, waardeer jou informasie 🎉

  • @SAAccountingNetwork

    @SAAccountingNetwork

    4 ай бұрын

    Plesier!

  • @MyDataBasebyErrolGuard-rr5rl
    @MyDataBasebyErrolGuard-rr5rl4 ай бұрын

    Very informative Thank You Regards Errol

  • @SAAccountingNetwork

    @SAAccountingNetwork

    4 ай бұрын

    My pleasure

  • @vernonrajman5378
    @vernonrajman53784 ай бұрын

    Hi Heinrich. Thanks for the informative video. Can you plesse make a video about expact tax? It would really help, thanks.

  • @SAAccountingNetwork

    @SAAccountingNetwork

    4 ай бұрын

    kzread.info/dash/bejne/X6iXysqIh5itp8Y.html Here you go!

  • @vernonrajman5378

    @vernonrajman5378

    4 ай бұрын

    @SAAccountingNetwork thank you kindly.

  • @shakesmarley4754
    @shakesmarley47543 ай бұрын

    liked and subbed from uk but from jozi :)

  • @SAAccountingNetwork

    @SAAccountingNetwork

    3 ай бұрын

    Thank you 🙏

  • @franchosis
    @franchosis3 ай бұрын

    Hi Heinrich, Thank you for your valuable content. I have been following you for a while now. So, lets say the foreign company employs a South African who sits at his South African home doing software related work from his home for the foreign employer from lets say europe or America- This would then be defined as a permanent establishment and the foreign company needs to register a south african entity in order to contribute to paye,sdl,uif etc? It does not matter if it is 1 employee or 5, and it does not matter if they have an office space or the employees work from their south african homes- SARS would deem the foreign employers as having an establishment in south africa and hence is require to register CIPC and is obligated to pay the relavent employee taxed over to sars. Am I correct in all this considering my example given? So it would probably be more beneficial for the foreign company to rather appoint a representative in order to minimize the admin. But if lets say the foreign company have like 8 or more employees it might make better financial sense for them to register with CIPC..otherwise if they employee a small amount of South Africans to help them do work but remotly from the employees homes then perhaps its just more practicle for the foreign employer to have a South African representative who takes care of all the admin of having a registered SA entity and paying all the relavent taxes..?

  • @SAAccountingNetwork

    @SAAccountingNetwork

    3 ай бұрын

    Yes that makes sense, but best to chat to the guys who works with it on a daily basis

  • @franchosis

    @franchosis

    3 ай бұрын

    @SAAccountingNetwork are you refering to representitives within South Africa? Are you able to give an example of company names that offer these services. For me - as I am looking the other way around and have people work for me remotely from foreign countries I came accross business models where they referring to themselves as Employee of Record(EOR). And this is the representitive that takes care of hiring employees on your behalf. Alternatively they offer Agent of Record services(AOR) also which is used when you want to engage contractors in that foreign country.. I believe we probably have those services in SA for foreign companies..

  • @witperd1564
    @witperd15643 ай бұрын

    all the fast food including 60-60 delivery Bike riders in the whole country is foreign 80% working at filling stations is foreign. 90% parking attendant is foreign. 98%Cell phone shops/kiosk is pakistani 90% Barber shops is pakistani 80% spaza shop is pakistani. 100% walking with brush cutters is foreing and the list goes on and on.

  • @SAAccountingNetwork

    @SAAccountingNetwork

    3 ай бұрын

    Agreed, but this is the other way around 👍

  • @FaizelMoosa-og3yl

    @FaizelMoosa-og3yl

    3 ай бұрын

    Maybe South Africans dont want to work and some politicians say open borders everyone can come and work here.Think about that

  • @ElgoergiolorenzoDosSantos

    @ElgoergiolorenzoDosSantos

    3 ай бұрын

    ​@@SAAccountingNetworkhello sir I loved your video you are very good at explaining things I deeply appreciate that thank you. I'm curious do you specialise in tax and if not who can you kindly recommend please

  • @user-ht5ls5ln5q
    @user-ht5ls5ln5q4 ай бұрын

    Does this count for when I freelance? So basically work for myself, but with clients overseas

  • @SAAccountingNetwork

    @SAAccountingNetwork

    4 ай бұрын

    Maybe check in with your tax consultant

  • @xcpointx
    @xcpointx4 ай бұрын

    Does this apply to South African independent contractors to foreign companies?

  • @SAAccountingNetwork

    @SAAccountingNetwork

    4 ай бұрын

    Maybe check in with your tax consultant