Non-resident employers and their SA employees

Kent Karro

Until now, non-resident employers with South African resident employees were not required to register with SARS for PAYE and employee contributions. It has not been required for such employers to withhold PAYE from the salaries paid. Instead, the relevant employees have had to register as provisional taxpayers and pay tax in their own right.

On 22 December 2023, the Tax Administration Laws Amendment Act 2023 was promulgated. The new law requires that such non-resident employers, if they conduct business through a permanent establishment in South Africa, are required to register for PAYE and other contributions.

A permanent establishment is defined as a fixed place of business in South Africa. Although the law is already in effect, from a practical point of view, we can assume an effective date of 1 March 2024.

Should you require guidance in this regard, please contact us as soon as possible.

Kent Karro Crowe
Taxation Cape (Pty) Ltd