South Africa tax
Tax residence: More than 91 days in tax year and each of the 5 preceding tax years. Special regime for new residents: Foreign employment income exemption (Income Tax Act s10).
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Tax residence
- More than 91 days in tax year and each of the 5 preceding tax years · Physical presence test: more than 91 days in the current year and in each of the five preceding years.
- More than 915 days in 5 tax years preceding the current year · Physical presence test: more than 915 days in total over the five preceding years.
- At least 330 days in continuous period outside South Africa · A physical-presence resident outside the country for at least 330 continuous full days ceases to be resident from the day of departure.
- More than 183 days in Any 12-month period · Full days outside South Africa required for the exemption.
- More than 60 days in Continuous period within the same 12 months · Continuous full days outside South Africa required for the exemption.
- The tax year runs 1 March to 28 February. The physical presence test applies only to a person who is not ordinarily resident; ordinary residence depends on the place a person returns to from absences as home.
Special regimes for new residents
Special regime
Foreign employment income exemption (Income Tax Act s10(1)(o)(ii))
Tax relief
Details
- On: Foreign-source employment remuneration of a resident employee
- Limit: ZAR 1.3M/yr ≈ $76k
A South African tax resident employee may exempt the first ZAR 1,250,000 (≈ $75,600) of remuneration for services rendered outside South Africa when both day tests are met; the excess is taxed at the normal rates. 6
Taxed on
Foreign-source employment remuneration of a resident employee
Who it applies to
- South African tax resident employee rendering services outside South Africa for an employer, South African or foreign.
- Outside South Africa for more than 183 full days in any 12-month period, including a continuous period of more than 60 full days.
Exclusions
- Public-sector employees and holders of public office appointed under an Act of Parliament.
- Independent contractor income, which is not remuneration.
- Non-residents.
Limits
- ZAR 1,250,000 a year (≈ $75,600) · Maximum exempt foreign employment remuneration, for years of assessment from 1 March 2020.
Days in the country
- More than 183 days in Any 12-month period · Full days outside South Africa required for the exemption.
- More than 60 days in Continuous period within the same 12 months · Continuous full days outside South Africa required for the exemption.
Tax residence
The employee must stay South African tax resident; the exemption does not apply to non-residents.
Visas
Applies to a resident who works abroad; a Remote Work Visa holder who is employed by a foreign company and is tax resident in South Africa does not fall under this exemption because the services are rendered inside South Africa.
Other taxes
Income above ZAR 1,250,000 (≈ $75,600) may be taxed in both countries unless a tax treaty gives sole taxing rights to one of them.
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Standard rules and foreign-source income
Standard rules
South Africa residents: worldwide income taxed at 18-45% (2027 tax year), ordinarily resident and physical presence tests
45% tax
Details
- On: Taxable income of a resident (worldwide)
- Limit: ZAR 245k/yr ≈ $15k
South African tax residents, whether ordinarily resident or meeting the physical presence test, are taxed on worldwide income at 18% to 45% for the 2027 tax year (1 March 2026 to 28 February 2027); non-residents are taxed only on South African-source income. 1 2 3 4 5
Taxed on
Taxable income of a resident (worldwide); South African-source income of a non-resident. 2027 tax year scale: up to ZAR 245,100 (≈ $14,800) 18%; to 383,100 ZAR (≈ $23,200) 44,118 plus 26% of the excess over 245,100; to 530,200 ZAR (≈ $32,000) 79,998 plus 31% over 383,100; to 695,800 ZAR (≈ $42,100) 125,599 plus 36% over 530,200; to 887,000 ZAR (≈ $53,600) 185,215 plus 39% over 695,800; to 1,878,600 ZAR (≈ $114,000) 259,783 plus 41% over 887,000; above 1,878,600 ZAR (≈ $114,000) 666,339 plus 45% over 1,878,600. Primary rebate ZAR 17,820 (≈ $1,080) (secondary ZAR 9,765 (≈ $590) aged 65+, tertiary ZAR 3,249 (≈ $200) aged 75+). The 2026 tax year scale was unchanged from 2025.
Who it applies to
- Resident: ordinarily resident in South Africa, or, if not ordinarily resident, meeting the physical presence test.
- Physical presence test: more than 91 days in the tax year, more than 91 days in each of the 5 preceding tax years, and more than 915 days in total over those 5 years; the person becomes resident from the first day of the sixth year in which all three are met.
- A person treated as exclusively resident of another country under a tax treaty is not a resident.
- A physical-presence resident who is outside South Africa for at least 330 continuous full days ceases to be resident from the day of departure.
Exclusions
- Interest earned by a non-resident not present for more than 183 days in the 12 months before accrual is exempt from income tax.
Limits
- ZAR 245,100 a year (≈ $14,800) · 18% band ends; 26% applies up to ZAR 383,100 (≈ $23,200) (2027 tax year)
- ZAR 1,878,600 a year (≈ $114,000) · 45% applies to taxable income above this amount (2027 tax year)
- ZAR 99,000 a year (≈ $5,980) · Tax threshold under age 65, 2027 tax year (1 March 2026 to 28 February 2027)
- ZAR 17,820 a year (≈ $1,080) · Primary rebate, 2027 tax year
Days in the country
- More than 91 days in tax year and each of the 5 preceding tax years · Physical presence test: more than 91 days in the current year and in each of the five preceding years.
- More than 915 days in 5 tax years preceding the current year · Physical presence test: more than 915 days in total over the five preceding years.
- At least 330 days in continuous period outside South Africa · A physical-presence resident outside the country for at least 330 continuous full days ceases to be resident from the day of departure.
Tax residence
The tax year runs 1 March to 28 February. The physical presence test applies only to a person who is not ordinarily resident; ordinary residence depends on the place a person returns to from absences as home.
Visas
Tax residence is independent of immigration status; the visa does not set the tax regime.
Other taxes
Capital gains: inclusion gives a maximum effective rate of 18% for individuals with an annual exclusion of ZAR 50,000 (≈ $3,020). Dividends tax is 20%. Interest from South African sources is exempt up to ZAR 23,800 (≈ $1,440) a year (under 65).
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VAT, social security and other taxes
- Capital gains: inclusion gives a maximum effective rate of 18% for individuals with an annual exclusion of ZAR 50,000 (≈ $3,020). Dividends tax is 20%. Interest from South African sources is exempt up to ZAR 23,800 (≈ $1,440) a year (under 65).
- Income above ZAR 1,250,000 (≈ $75,600) may be taxed in both countries unless a tax treaty gives sole taxing rights to one of them.
Questions people ask
When do you become a tax resident in South Africa?
More than 91 days in tax year and each of the 5 preceding tax years (Physical presence test: more than 91 days in the current year and in each of the five preceding years); More than 915 days in 5 tax years preceding the current year (Physical presence test: more than 915 days in total over the five preceding years); At least 330 days in continuous period outside South Africa (A physical-presence resident outside the country for at least 330 continuous full days ceases to be resident from the day of departure); More than 183 days in Any 12-month period (Full days outside South Africa required for the exemption); More than 60 days in Continuous period within the same 12 months (Continuous full days outside South Africa required for the exemption). The tax year runs 1 March to 28 February.
Who qualifies for Foreign employment income exemption (Income Tax Act s10)?
South African tax resident employee rendering services outside South Africa for an employer, South African or foreign. Applies to a resident who works abroad; a Remote Work Visa holder who is employed by a foreign company and is tax resident in South Africa does not fall under this exemption because the services are rendered inside South Africa.
How are Remote Work Visa holders taxed in South Africa?
No special regime in our records is tied to the Remote Work Visa. The standard rules apply: South African tax residents, whether ordinarily resident or meeting the physical presence test, are taxed on worldwide income at 18% to 45% for the 2027 tax year (1 March 2026 to 28 February 2027); non-residents are taxed only on South African-source income.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (6)
Official sources
- Rates of Tax for Individuals (2027 tax year: 1 March 2026 - 28 February 2027) · South African Revenue Service · checked 2026-10-10 · published 2026-02-25
- Tax and Non-Residents · South African Revenue Service · checked 2026-10-10
- Guide on the Taxation of Foreigners Working in South Africa (ordinarily resident and physical presence tests) · South African Revenue Service · checked 2026-10-10 · published 2015
- Capital Gains Tax (CGT) rates · South African Revenue Service · checked 2026-10-10
- Interest and Dividends rates · South African Revenue Service · checked 2026-10-10
- Foreign Employment Income Exemption · South African Revenue Service · checked 2026-10-10