Receiving Salary from overseas

[Leader0fr4tz]

Hey guys

I have just started working with and international company(with no branch here yet, as I am part of their expansion into South Africa)
So they will be paying me in USD $ and I would like to find out from other people that work like this(if there are any here), and others, what is the best way to receive the payments and what are the costs involved ?

I currently have an ABSA savings account which I am changing to a Cheque account soon, and am willing to look at other options if there are any better ones.

Thanks in advance

 

[Spizz]

Hey guys

I have just started working with and international company(with no branch here yet, as I am part of their expansion into South Africa)
So they will be paying me in USD $ and I would like to find out from other people that work like this(if there are any here), and others, what is the best way to receive the payments and what are the costs involved ?

I currently have an ABSA savings account which I am changing to a Cheque account soon, and am willing to look at other options if there are any better ones.

Thanks in advance

I get paid in Euros but it's the same in USD. So I get an email from the bank when my salary reaches Johannesburg. You then have 20 days (iirc) to call and they will give you a rate and if you accept they transfer into your account in Rands. It shows immediately.

You can wait a while if you think the rate will change for the better, but I always as a matter of course just accept the rate and change it immediately instead of trying to be clever and guess how the market is going to go.

I'm with FNB but ABSA is the same btw.

 

[Grant]

Hey guys

I have just started working with and international company(with no branch here yet, as I am part of their expansion into South Africa)
So they will be paying me in USD $ and I would like to find out from other people that work like this(if there are any here), and others, what is the best way to receive the payments and what are the costs involved ?

I currently have an ABSA savings account which I am changing to a Cheque account soon, and am willing to look at other options if there are any better ones.

Thanks in advance

i worked for an american organisation for quite some time.
our salaries (south african employees) were dollar based & paid into any nominated bank account here or outside south africa.
we were then "responsible" for our own tax affairs.

if the company has no physical presence here & your salary is being paid from a source outside the country, i would leave it there (in terms of a bank account), drawing off it using a credit / debit card.

 

[Mystic Twilight]

i worked for an american organisation for quite some time.
our salaries (south african employees) were dollar based & paid into any nominated bank account here or outside south africa.
we were then "responsible" for our own tax affairs.

if the company has no physical presence here & your salary is being paid from a source outside the country, i would leave it there (in terms of a bank account), drawing off it using a credit / debit card.

Be careful SARS doesn't say you are tax evading. SARS sometimes get creative with the tax laws.

 

[AchmatK]

Be careful SARS doesn't say you are tax evading. SARS sometimes get creative with the tax laws.

Nothing wrong with the way Grantza explained. An overseas company with no physical presence in SA and not registered with SARS cannot withhold PAYE and pay this over to Sars. The employee will need to declare this on his income tax return and preferably be registered for provisional tax as well.

 

[Mystic Twilight]

Nothing wrong with the way Grantza explained. An overseas company with no physical presence in SA and not registered with SARS cannot withhold PAYE and pay this over to Sars. The employee will need to declare this on his income tax return and preferably be registered for provisional tax as well.

I'm referring to those that don't declare it at all.

 

[Garson007]

If you don't declare - then you are tax evading!

 

[Ocali]

If you don't declare - then you are tax evading!

yeah as far as i know this is correct(dont hold me to it)

there are tax exemptions, but that is if you are not actually in the country.

 

[Johnatan56]

yeah as far as i know this is correct(dont hold me to it)

there are tax exemptions, but that is if you are not actually in the country.

I think it's less than six months in the country.

 

[Ocali]

I think it's less than six months in the country.

actually it used to be a minimum of 180 days a year, of which 62days have to be continuous.

 

[anthony900220]

Lol what are you people on about?

I work up in africa
The company I work for pays us in dollars

I use fnb
As soon as the salary comes through I get an email I log onto fnb.co.za go to forex think its global receipt check if the payment shows click on it fill out info, south African working aboard paid by non south african company (not sure on exact wording)
AYou will get a quote, if you accept itll email you when confirmed

Quick and easy

 

[Johnatan56]

Lol what are you people on about?

I work up in africa
The company I work for pays us in dollars

I use fnb
As soon as the salary comes through I get an email I log onto fnb.co.za go to forex think its global receipt check if the payment shows click on it fill out info, south African working aboard paid by non south african company (not sure on exact wording)
AYou will get a quote, if you accept itll email you when confirmed

Quick and easy

We are talking about the taxes on those payments to you, they are income and if you avoid it you are evading tax.

 

[anthony900220]

We are talking about the taxes on those payments to you, they are income and if you avoid it you are evading tax.

Out the country 8-12 weeks so tax free

Oh and also with fnb you can set it up that the payment is automatically accepted

 

[Spizz]

Out the country 8-12 weeks so tax free

Oh and also with fnb you can set it up that the payment is automatically accepted

I wouldn't do that. I call them with the XE.com app open and often challenge the rate they offer. Sometimes they go off for a while and talk to a broker before coming back with a better rate.

The criteria for tax exemption is 181 days out of the country in which one period has to be continuous for 60 days.

 

[anthony900220]

Lol if you out of sa your phone call will cost more than what you save

 

[Spizz]

Lol if you out of sa your phone call will cost more than what you save

You'd be surprised, and besides, company pay for my phone calls

But I was pushing for about 10 cents below the XE.com rate last year when I was being paid in USD.

So if the app said 10.50 I'd call them and if they said 10.35, I'd tell them too low and try for 10.40. Most times I'd get it after they spoke to a broker.

 

[anthony900220]

You'd be surprised, and besides, company pay for my phone calls

But I was pushing for about 10 cents below the XE.com rate last year when I was being paid in USD.

So if the app said 10.50 I'd call them and if they said 10.35, I'd tell them too low and try for 10.40. Most times I'd get it after they spoke to a broker.

Hmmm I think im going to have to give it a try and see what happens
But the connection in drc is really bad at times so might have to via skype voice calls

Which country were you working in?

 

[Spizz]

Hmmm I think im going to have to give it a try and see what happens
But the connection in drc is really bad at times so might have to via skype voice calls

Which country were you working in?

That was in Senegal. But yeah, sometimes it was frustrating and the call could take 30 minutes with the odd disconnect. Actually, the last couple of months now when I was in Liberia, my wife called them from home in SA and did the deed for me.

Maybe an option if you are married?

 

[MrMag]

You will still pay TAX
But able to claim various things like maintaining an office ie. I think a room in your home
cleaner office supplies etc, I knew some blokes that paid no TAX you just need a good
accountant and receipts for everything including daily business mileage. One chap paid off his Bond
in 5 years not paying TAX.

I don't know the whole story but I do know the guys I used to work with where cheesed off when taken over by
a South African Company and had to be reasonably compensated for extra TAX now being paid.