--- title: "South Africa tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/south-africa/tax/ lang: en updated: 2026-10-10 --- # 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). Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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. (source 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. Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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. (sources 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). Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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 1. [Rates of Tax for Individuals (2027 tax year: 1 March 2026 - 28 February 2027)](https://www.sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/) · South African Revenue Service · checked 2026-10-10 · published 2026-02-25 2. [Tax and Non-Residents](https://www.sars.gov.za/individuals/tax-during-all-life-stages-and-events/tax-and-non-residents/) · South African Revenue Service · checked 2026-10-10 3. [Guide on the Taxation of Foreigners Working in South Africa (ordinarily resident and physical presence tests)](https://www.sars.gov.za/wp-content/uploads/Ops/Guides/LAPD-IT-G21-Guide-on-the-Taxation-of-Foreigners-working-in-South-Africa.pdf) · South African Revenue Service · checked 2026-10-10 · published 2015 4. [Capital Gains Tax (CGT) rates](https://www.sars.gov.za/tax-rates/income-tax/capital-gains-tax-cgt/) · South African Revenue Service · checked 2026-10-10 5. [Interest and Dividends rates](https://www.sars.gov.za/tax-rates/income-tax/interest-and-dividends/) · South African Revenue Service · checked 2026-10-10 6. [Foreign Employment Income Exemption](https://www.sars.gov.za/individuals/tax-during-all-life-stages-and-events/foreign-employment-income-exemption/) · South African Revenue Service · checked 2026-10-10