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South Africa - Special considerations for short-term assignments

Special considerations for short-term assignments

Taxation of international executives

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Residency rules

Are there special residency considerations for short-term assignments?

There are no special residency considerations. The residency rules that would apply to an individual who is on a long-term assignment would also apply to an individual who is on a short-term assignment. However, it is unlikely that a short-term assignee would trigger tax residency in South Africa.

Payroll considerations

Are there special payroll considerations for short-term assignments?

N/A.

Taxable income

What income will be taxed during short-term assignments?

Any income that is of a South African source. Employment income is generally treated as South African sourced compensation where the individual performs the services to earn that income while physically located in South Africa.

Additional considerations

Are there any additional considerations that should be considered before initiating a short- term assignment in South Africa?

In cases whereby South Africa has a Double Tax Agreement with the other country/jurisdiction in question. One would need to structure the short time assignment, in a way that would ensure that the individual would be able to meet the requirements of the Double Tax Agreement relief, that is intended for short term assignments, if possible.

Disclaimer

All information contained in this publication is summarized by KPMG Services (Pty) Ltd, the South African member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the South African Income Tax Act 58 of 1962 and subsequent amendments; the Tax Administration Act 28 of 2011; Interpretation Notes and Rulings issued by the South African Revenue Service from time to time; applicable South African and relevant global case law.

© 2021 KPMG Services Proprietary Limited, a South African company with registration number 1999/012876/07 and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.


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