First, I have to state that we are not tax consultants and by German law are not allowed to give any tax advice. Please speak to a professional tax consultant if you have any questions regarding your taxes in South Africa.
Here are some links from the SARS and Bundesfinanzministeriums(BMF) websites
The following is quoted from the SARS Website and was valid at the time of publishing- “Yes, if an individual earns employment income in excess of R1.25 million and the double tax agreement between South Africa and the foreign country, if any, does not provide a sole taxing right to one country, both countries will have a right to tax the income. The portion of the income in excess of R1.25 million may end up being double-taxed.
Generally, under the provisions of the relevant double tax agreement, if an employee renders services in a foreign country exceeding 183 days, both countries enjoy the right to tax the income. The country of source enjoys the first right to tax the employment income and the country of residence, in our case South Africa, will provide double tax relief in the form of a foreign tax credit to the extent that tax was paid in both countries, subject to limitations.” – More information on the SARS Website
Keep in mind that, depending on your situation, if you are over the R1.25 million threshold, you still can claim tax credits for the taxes paid in Germany. The best thing to do is to speak to your tax consultant.
The following was quoted from the SARS website and was valid at the time of publishing. “Section 6 is the mechanism under South Africa’s domestic law to claim relief from double tax where the amount received for services rendered outside South Africa is subject to tax in South Africa and in the foreign country. This credit may be claimed on an assessment through an individual’s income tax return, provided certain requirements are met.
An employer may, at his or her discretion, under paragraph 10 of the Fourth Schedule, apply for a directive from SARS to take into account the potential section 6 credit on a monthly basis to determine the employees’ tax liability. This will have to be done through a dedicated channel at SARS that will be made available to the public.
See the information on Directives under paragraph 10 of the Fourth Schedule.
Information from SARS on who is regarded as a non-resident
Who is a tax resident in South Africa – Reference SARS
An individual is a resident for tax purposes in South Africa either by way of ordinarily residence or by way of physical presence. The concept of “ordinarily residence” is not clearly defined and the determination of whether or not an individual is an ordinarily resident for tax purposes must be done on a case-by-case basis. A number of factors must be taken into account to make such a determination. Interpretation Note 3 (Issue 2): Resident: Definition in relation to a natural person – ordinarily resident sets out the list of factors that will be taken into account to determine whether an individual is ordinarily resident for tax purposes in South Africa.
An individual can also become a tax resident by way of physical presence. For more details in this regard, refer to Interpretation Note 4 (Issue 5): Resident: Definition in relation to a natural person – physical presence test.
An individual who is deemed to be exclusively a resident of another country for purposes of a tax treaty is excluded from the definition of “resident”. It follows that while an individual may qualify as a resident under the ordinarily resident or physical presence tests, that individual will not be regarded as a resident for South African tax purposes if that person is a resident of another country when applying for a tax treaty.
Procedure to cease tax residency with SARS When you are earning your salary in Germany, and you are still a tax resident in South Africa, you need to declare your foreign income to SARS by submitting an annual Tax return to SARS. If you earn less than R1.25 million per year in Germany, you do not pay any taxes on this foreign income in South Africa. If you earn above that, the taxes you already
When you are a South African citizen, living outside of South Africa, there are special rules when inheriting from a South African Estate.
Important is whether you still have a SA ID document, whether you are still a Tax resident and how much the inheritance will be. Sable International shared the following article to help you understand better
Foreign Exchange- EUR to ZAR This guide brings together the practical basics you need to understand how South African and German exchange control works, what’s allowed (and what’s definitely not), and where to look when you’re unsure. We’re not financial advisors — just a community sharing knowledge so you can make confident, well-informed decisions. Disclaimer – We share general information to help our community understand how foreign exchange and cross-border rules work. We are not
Foreign Exchange- ZAR to EUR This guide brings together the practical basics you need to understand how South African exchange control works, what’s allowed (and what’s definitely not), and where to look when you’re unsure. We’re not financial advisors — just a community sharing knowledge so you can make confident, well-informed decisions. Before you move a single rand or euro, take a moment to breathe, read, and, when in doubt, chat to a qualified professional.
Income Tax / Lohnsteuer We often receive questions about income tax declarations in Germany and where to find help, especially help in English. First, we must clarify that we are not tax consultants and, under German law, are not authorised to provide any tax advice. You can read more about these legal restrictions in this article from Buhl (in German, but easily translatable with most browsers). In simple terms, only your immediate family members are legally allowed
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