Proposed changes to South Africa's tax law could have significant implications for remote workers and their employers. The South African Revenue Services (SARS) has introduced a draft of the proposed tax administration bill, which aims to modify the taxation process for remote workers. Currently, remote workers declare their income during the tax season, but this method is seen as leading to revenue losses. The proposed change would require employers of remote workers based in South Africa to deduct Pay As You Earn (PAYE) tax, directly collecting tax deductions from employers. This move is intended to level the playing field between resident and non-resident employers and increase revenue for the government. However, this change could present challenges for international companies, potentially making it more difficult for South African personnel to be considered for remote work opportunities. The proposed amendments are open for public commentary until August 31, 2023, with the final bill expected to be released for parliamentary consideration after that.
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