Remote work may offer flexibility, but cross-border working arrangements create complex tax and legal risks for both employees and employers. This course explains the South African tax implications of working abroad, including residency rules, foreign income, double tax agreements, PAYE responsibilities and permanent establishment risks for employers.
This practical session explores the tax, legal and compliance considerations when employees perform their services remotely outside South Africa. Participants will gain clarity on how SARS treats foreign-earned income, the tests for tax residency, and how double taxation can be avoided. The course also highlights the employer’s responsibilities relating to PAYE, international payroll, and the risk of triggering a foreign tax presence through remote workers. Key contractual and legal safeguards will also be discussed.
Key Topics Covered:
• Gross income rules and the foreign income exemption
• Tax residency vs non-residency tests
• Double Tax Agreements (DTAs) explained
• SARS reporting obligations for employees
• Employer PAYE and payroll compliance across borders
• Place of Effective Management (POEM) risks
• Permanent establishment exposure in foreign jurisdictions
• Contractual and legal considerations for remote work policies
• Tax practitioners
• Accountants
• HR and payroll professionals
• Finance managers
• Business owners and executives with remote teams
• Global mobility specialists
• Remote employees working abroad
• Compliance and legal advisers handling cross-border employment
