How does it work when earning in Dollars or Euro's

[cguy]

And yes any amount about 1.25m is double taxed. SA and US both have a double taxation system.

That doesn't sound right at all.

 

[Cius]

You will pay tax as a resident, not in which country you earn the money. So tax would need to be paid to SARS.

And yes any amount about 1.25m is double taxed. SA and US both have a double taxation system. I do use paypal and get paid that way but then you have to bring it in via FNB and its been misery ever since. So now Paypal and me got fed up with FNB and my Paypal account was switched to a US resident account and we simply just leave it there as savings.

However many banks have foreign accounts, Isle of Man, etc. Standard Bank, Nedbank both offers this, not sure about the others. They can do a swift transfer to your account from abroad, but it may cost a bit more. Best to chat to your bank. I found it much easier just opening up a foreign bank account. My friend works with Chevron and they pay into his Investec account. Best to chat to your bank.

So how much tax are you then paying on amounts above 1.25M? I would guess 41% to SA and then 22% for the USA if I read their tax brackets correctly. So a total of 63% tax on amounts above that! That is horrific.

 

[PowerFactor]

I thought the 1.25M threshold is only for places where we don't have a double tax agreement?

 

[Cius]

I thought the 1.25M threshold is only for places where we don't have a double tax agreement?

https://www.sars.gov.za/wp-content/uploads/Ops/Guides/LAPD-IT-G29-PIT-FAQs-Foreign-Employment-Income-Exemption.pdf

Seems to be a lot here but most of the questions are for the scenario where you mainly pay tax in the other country, not SA.

The US tax treaty: https://www.sars.gov.za/wp-content/...-82-DTA-United-States-of-America-GG-18553.pdf

According to article 14 it seems there is no double tax. You just pay in the country you stay in for more than 183 days. Hope I am reading that correctly.

 

[Harmonic]

One thing to watch for. I also use Wise, but if you have a bond you might have to wangle it a bit with your provider as they want your salary coming from your employer directly. With Wise being a middle man and the employer paying into that, it’s then up to you to do the transfer to Rand and banks don’t like that.

I've literally never had an issue with this. Not with Nedbank, FNB and Investec at least. Which bank?

 

[Spizz]

I've literally never had an issue with this. Not with Nedbank, FNB and Investec at least. Which bank?

SAHL and FNB. They both insist you have a salary paid by your company into the bank. I’d imagine that is standard across the board but if you don’t tell them you don’t tell and for all intents and purposes it looks like it is.

 

[Harmonic]

SAHL and FNB. They both insist you have a salary paid by your company into the bank. I’d imagine that is standard across the board but if you don’t tell them you don’t tell and for all intents and purposes it looks like it is.

Odd. FNB knew full well my income was from offshore and never said anything. The loan with them was for vacant land so maybe that factored in

 

[theratman]

Again I suggest you look at the rates you're getting quoted and you might find that's where most of the cost is hidden.

I see what you mean now. This is from this morning. 20.047. EU to ZAR via Swift.

 

[Spizz]

Odd. FNB knew full well my income was from offshore and never said anything. The loan with them was for vacant land so maybe that factored in

It’s not that it’s from overseas, it’s that it doesn’t come directly from the company to your bank account.

 

[Harmonic]

It’s not that it’s from overseas, it’s that it doesn’t come directly from the company to your bank account.

It never came directly from a company for me.