With regard to the new expat tax, does a taxpayer need to fill this in on the 2020 tax return or only from the 2021 year of assessment? Where in the 2020 tax return would this be completed?
Author: Cecile Bothe
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
The new expat tax dispensation was introduced from 1 March 2020 with the start of the 2021 year of assessment. For the 2020 year of assessment the following line item must be used to report non-taxable foreign salary income: Amounts Received/Accrued Considered Non - Taxable: The amount must be captured as ‘Other’ and the description field must also be completed. The description can in this instance be: Exempt Amount in terms of s10(1)(o).