PAYE and International Companie

[Gatsby]

Hi,

Looking for advice here. My wife recently started working for a company that has offices in many different African Countries with the head office being in Botswana. The company employees are paid from the account in Botswana, because of this the don't deducted PAYE or UIF on behalf of the company.

I would like to know what the regulations regarding this are, my own reading just seemed to confuse me more, and if this is an accepted practice how does a individual pay their own PAYE and UIF to SARS?

Any help would be appreciated.


EDIT: I realise I misspelled "Company" but I can't find a way to edit the title of the thread.

 

[Necropolis]

Speak to an accountant

But I imagine what you owe SARS will be calculated when you submit your tax return and declare the income.

I would most likely figure out what the monthly tax amount would be and put this into a separate account and use that to pay SARS when tax season starts.

 

[A Non Blonde]

Does the company deduct any form of tax?

 

[Gatsby]

Does the company deduct any form of tax?

Nope, they seem to just pay a gross amount.

 

[A Non Blonde]

You may have to look at the double taxation agreement with Botswana and see who carries the taxation rights.

 

[A Non Blonde]

From my understanding of the DTA and if the facts fit then your SO, if conducting the employment in SA and being paid from Botswana, would be taxable on the income in SA.

If no tax has been deducted at all (check payslips) then it appears she may sit with a liability if the income exceeds the tax threshold.

1. Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other similar
remuneration derived by a resident of a Contracting State in respect of an employment shall be
taxable only in that State unless the employment is exercised in the other Contracting State. If the
employment is so exercised, such remuneration as is derived therefrom may be taxed in that other
State.

She is not an "employer" therefore would not register to pay her own PAYE or UIF, but settle the liability on assessment.
Perhaps also check if the definition of "provisional taxpayer" would apply in this instance.

 

[initroot]

Hi,

Looking for advice here. My wife recently started working for a company that has offices in many different African Countries with the head office being in Botswana. The company employees are paid from the account in Botswana, because of this the don't deducted PAYE or UIF on behalf of the company.

I would like to know what the regulations regarding this are, my own reading just seemed to confuse me more, and if this is an accepted practice how does a individual pay their own PAYE and UIF to SARS?

Any help would be appreciated.


EDIT: I realise I misspelled "Company" but I can't find a way to edit the title of the thread.

She needs to pay provisional tax. If no tax are deducted in Botswana, also ensure where she needs to be taxed. If she is over the days threshold she will not be taxed in SA but can be taxed in Botswana instead of here.