I have a client who occasionally goes over to the UK for a period of 6 months to a year to work as a carer...She is there now currently earning pounds and she has to declare her income over there for tax purposes. Now she is still a permanent resident of
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
Under paragraph 1 of Article 14 (of the relevant treaty), and subject to the provisions of Articles 15, 17 and 18 of the treaty, salaries, wages and other similar remuneration derived by a resident of the RSA in respect of an employment exercised in the UK, then the remuneration derived therefrom may be taxed in the UK.
For purposes of the guidance provided it was accepted that the amounts derived in the UK are not derived from “the performance of professional services and of other activities of an independent character”.
Based on that assumption, and Article 14, both countries will then have the right to tax the amounts (the salaries, wages and other similar remuneration).
You will translate the foreign currency amount to ZAR in terms of section 25D(2) of the Act, spot rate at transaction date, or by applying the average exchange rate for the relevant year of assessment.
Section 6quat will give credit for any foreign tax to give relief for any foreign tax that arises.