The taxpayer\u2019s information will be stored and used in the subsequent year of assessment unless the taxpayer\u2019s circumstances have changed subsequently, SARS said.<\/p>\n\n\n\n
South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of where their income was earned. <\/p>\n\n\n\n
By contrast, non-residents are taxed only on their income from a South African source. <\/p>\n\n\n\n
Because tax systems differ from country to country, SARS said there is a chance that a particular amount could be taxed twice. <\/p>\n\n\n\n
This possibility of double taxation is, however, often alleviated by tax relief contained in various Double Taxation Agreements (DTAs), it said. <\/p>\n\n\n\n
DTAs are international agreements contracted between countries to deal with potential competing taxing rights against the income of the same taxpayer. <\/p>\n\n\n\n
Under the provisions of a DTA, remuneration earned by a non-resident in South Africa may not be subject to normal tax in South Africa where specific requirements are met.<\/p>\n\n\n\n
However, this is not always the case.<\/p>\n\n\n\n
The taxes non-residents pay<\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/05\/Edward-Kieswetter-02-1024x576.jpg\")
<\/a>SARS Commissioner Edward Kieswetter<\/figcaption><\/figure>\n\n\n\nSalary income<\/strong><\/p>\n\n\n\nSalaries earned in South Africa by non-residents will be subject to normal tax in South Africa unless a DTA entered into between South Africa and the foreign country in which they reside stipulates otherwise.<\/p>\n\n\n\n
Any non-resident who renders services in South Africa will be subject to normal tax in South Africa unless there is a DTA, their employer is resident and doesn’t have a permanent establishment in the country, and they have not been in the country for more than 183 days.<\/p>\n\n\n\n
\n\n\n\nPensions and annuities<\/strong><\/p>\n\n\n\nAny amount received by a non-resident that constitutes a lump sum, pension or annuity from a pension fund, pension preservation, provident fund or provident preservation fund and the services is subject to normal tax in South Africa.<\/p>\n\n\n\n
If the amount received or accrued relates to services rendered inside and outside South Africa, only the portion of the amount relating to services rendered in South Africa is subject to tax in South Africa.<\/p>\n\n\n\n
\n\n\n\nRental income<\/strong><\/p>\n\n\n\nIf a non-resident owns property and draws rental income from it, that rental income will be subject to normal tax in South Africa.<\/p>\n\n\n\n
Rental income is generally regarded as where property is used on a day-to-day basis.<\/p>\n\n\n\n
Expenses such as rates and taxes, bond interest, insurance, repairs may be claimed as deductions against such rental income, subject to certain conditions.<\/p>\n\n\n\n
\n\n\n\nInterest<\/strong><\/p>\n\n\n\nInterest received by or accrued to a non-resident from a source within South Africa is exempt from normal tax in South Africa unless the non-resident was in the country for more than 183 days or the debt is connected to a person or entity with a permanent establishment in South Africa.<\/p>\n\n\n\n
Interest could also be subject to a withholding tax of 15%, although there are some exemptions.<\/p>\n\n\n\n
\n\n\n\nDividends<\/strong><\/p>\n\n\n\nDividends, meanwhile, will be subject to dividends tax at a rate of 20%. This applies to dividends paid by companies that are residents. <\/p>\n\n\n\n
Dividend tax is also payable on a foreign dividend, though this rate is subject to a reduction in terms of the various DTAs.<\/p>\n\n\n\n
\n\n\n\nRoyalties<\/strong><\/p>\n\n\n\nRoyalties derived from the right of use of intellectual property or the grant of the permission to use such property in South Africa, are subject to a final withholding tax of 15%. <\/p>\n\n\n\n
Non-residents can be exempt from this if they have been in the country for more than 183 days, among other requirements, but then the amount is subject to normal tax.<\/p>\n\n\n\n
\n\n\n\nCapital Gains Tax (CGT)<\/strong><\/p>\n\n\n\nNon-residents are only subject to CGT on immovable property (like a flat, a house, farm, vacant land etc),
equity shares, a vested interest in a trust, or the assets of any permanent establishment of a non-resident in South Africa.<\/p>\n\n\n\n
The share or interest applies only if 80% or more of the market value of that share\/interest is directly or indirectly attributable to immovable property in South Africa.<\/p>\n\n\n\n
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<\/a>Salary income<\/strong><\/p>\n\n\n\n Salaries earned in South Africa by non-residents will be subject to normal tax in South Africa unless a DTA entered into between South Africa and the foreign country in which they reside stipulates otherwise.<\/p>\n\n\n\n Any non-resident who renders services in South Africa will be subject to normal tax in South Africa unless there is a DTA, their employer is resident and doesn’t have a permanent establishment in the country, and they have not been in the country for more than 183 days.<\/p>\n\n\n\n Pensions and annuities<\/strong><\/p>\n\n\n\n Any amount received by a non-resident that constitutes a lump sum, pension or annuity from a pension fund, pension preservation, provident fund or provident preservation fund and the services is subject to normal tax in South Africa.<\/p>\n\n\n\n If the amount received or accrued relates to services rendered inside and outside South Africa, only the portion of the amount relating to services rendered in South Africa is subject to tax in South Africa.<\/p>\n\n\n\n Rental income<\/strong><\/p>\n\n\n\n If a non-resident owns property and draws rental income from it, that rental income will be subject to normal tax in South Africa.<\/p>\n\n\n\n Rental income is generally regarded as where property is used on a day-to-day basis.<\/p>\n\n\n\n Expenses such as rates and taxes, bond interest, insurance, repairs may be claimed as deductions against such rental income, subject to certain conditions.<\/p>\n\n\n\n Interest<\/strong><\/p>\n\n\n\n Interest received by or accrued to a non-resident from a source within South Africa is exempt from normal tax in South Africa unless the non-resident was in the country for more than 183 days or the debt is connected to a person or entity with a permanent establishment in South Africa.<\/p>\n\n\n\n Interest could also be subject to a withholding tax of 15%, although there are some exemptions.<\/p>\n\n\n\n Dividends<\/strong><\/p>\n\n\n\n Dividends, meanwhile, will be subject to dividends tax at a rate of 20%. This applies to dividends paid by companies that are residents. <\/p>\n\n\n\n Dividend tax is also payable on a foreign dividend, though this rate is subject to a reduction in terms of the various DTAs.<\/p>\n\n\n\n Royalties<\/strong><\/p>\n\n\n\n Royalties derived from the right of use of intellectual property or the grant of the permission to use such property in South Africa, are subject to a final withholding tax of 15%. <\/p>\n\n\n\n Non-residents can be exempt from this if they have been in the country for more than 183 days, among other requirements, but then the amount is subject to normal tax.<\/p>\n\n\n\n Capital Gains Tax (CGT)<\/strong><\/p>\n\n\n\n Non-residents are only subject to CGT on immovable property (like a flat, a house, farm, vacant land etc), The share or interest applies only if 80% or more of the market value of that share\/interest is directly or indirectly attributable to immovable property in South Africa.<\/p>\n\n\n\n
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equity shares, a vested interest in a trust, or the assets of any permanent establishment of a non-resident in South Africa.<\/p>\n\n\n\n
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